I operate a small trucking company. This morning two competitors announced they will opt out of trucking. As the competition falls that leaves me to be able to raise my prices to make a profit. (That along with the railroad’s new policy of not providing the markets I service) The oil futures are at $140 through 2012, so there’s no relief in sight. What will the market bear at this time? Business have to charge today for what prices will be tomorrow.
I may be the ‘last man standing’ (or not if Congress passes any type of tax ‘surcharge’, that’d be a killer. 4% off the top of gross revenues would be impossible to absorb in my profit margin)
The prices can go anywhere they want and it won’t matter to the trucker so long as his clients will pay the rate. It’s hard to imagine a client refusing to pay fuel cost since he will have to anyway or go out of business himself. There was a price cap here until a couple years ago, but it lapsed and was not renewed, so fuel charges are being passed on down the chain to the ultimate customer.
I don't think you understand what that means. Two years ago, futures were $60 through 2010. Capiche?