Importance of Oil Price in Freight Transport Costs

Importance du prix du petrole dans le cout du transport de marchandises

Oil is the main component of transport fuel. As for now, however, crude oil price (FOB-free on board) accounts for less than a fifth of transport costs. Operating costs, wages and taxes cause the remaining four fifths. Nevertheless, oil scarcity many raise fuel costs to such a level that transport companies and citizens may suffer significant adverse impacts. A multiplication by eight (8) of the price of oil (compared to 2007) would double road transport cost. Yet, the rise would be global, which would enable operators to shift the cost to their clients without suffering changes in competition. Still, small operators that would not be in a position to optimize truck loads and routes would be threatened. A major oil price rise would mainly affect two aspects of mobility: aviation and private motoring. Air companies have added a special oil charge to ticket cost while changes in private motoring, which uses approximately as much fuel as air per passenger/kilometer, may lead to a situation where only the wealthiest citizens may keep driving.

• Record URL:
  http://www.internationaltransportforum.org/jtrc/discussionpapers/DP200804.pdf
• 
• Corporate Authors:

  International Transport Forum

  2 rue Andre Pascal
  Paris Cedex 16,   France  F-75775
• Authors:
  • Chevroulet, Tristan
• Publication Date: 2008-1

Language

• English

Media Info

• Media Type: Web
• Features: Figures; References; Tables;
• Pagination: 9p

Subject/Index Terms

• TRT Terms: Crude oil; Freight traffic; Freight transportation; Motor carriers; Operating costs; Truck traffic; Trucking
• Uncontrolled Terms: Fuel costs; Transportation costs
• Subject Areas: Economics; Energy; Highways; I15: Environment;

Filing Info

• Accession Number: 01226326
• Record Type: Publication
• Report/Paper Numbers: Discussion Paper No. 2008-4
• Files: TRIS
• Created Date: Nov 17 2010 7:23AM