Tuesday, June 24, 2008

How Fuel Prices Affect Your Move


It should be obvious.
Every American is being affected by the rise in fuel costs, not only for their own daily commute, but also indirectly as the cost of consumable goods and food rise to adjust for transportation expenses. Eggs and milk are way up over a year ago, and I am already dreading the cost of the cab ride to the airport for my annual family visit to Florida in December.
Members of the trucking and moving industries are feeling the pain of fuel increases most sharply. Many of them are finding their livelihoods threatened as they try to incorporate fuel increases into their daily operating costs. In an industry that already has very low profit margin, the cost of fuel is now one of the greatest operating expenses, second only to labor. The American Trucking Association has labeled the situation a “National Fuel Price Crisis.”
The cost of diesel fuel has risen 26% since the beginning of 2008, compared to an 18% increase in gasoline.
How does all of this information affect the shipment of household goods?
Unfortunately, it means that a move will cost more than it did a year ago. Van line providers use published government rates to determine a fuel surcharge. That surcharge is applied to state-to-state moves, and is reflected in your written estimate.

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