# Presentation: 472950

## Energy Issues 

**and the Impacts on **
**Freight Transportation**
**-**
**Jo Frigger**

**Global Economy Requires Global Transportation**
**Cost of Transportation Increases with Cost of Fuel**

## 		
USA
			Gasoline			US$ 3.20
			Diesel				US$ 3.30

Europe
			Gasoline			US$ 6.30
			Diesel				US$ 5.30

China
			Gasoline			US$ 1.90
			Diesel				US$ 1.15

Chile
			Gasoline			US$ 4.55
			Diesel				US$ 3.20

**USA**
- 			Gasoline			US$ 3.20
- 			Diesel				US$ 3.30
- 		**	****	**
**Europe**
- 			Gasoline			US$ 6.30
- 			Diesel				US$ 5.30
**China**
- 			Gasoline			US$ 1.90
- 			Diesel				US$ 1.15
**Chile**
- 			Gasoline			US$ 4.55
- 			Diesel				US$ 3.20
**	****	**

**Global Average Fuel Cost**
**(Price per Gallon)**

**Jet Fuel**
**(Price per Gallon)**

**New York**
- 		**US$ 2.14**
**Singapore**
- 		**US$ 1.95**
**Anticipated Increase from 2005 to 2006**
- 		**44%**
**Anticipated Cost Increase for all Air Carriers Worldwide**
- 		**US$ 20 Billion**

**Air Cargo Fuel Surcharges**
- 	January	US$ 0.30 per Kg
- 	May		US$ 0.40 per Kg
- 	January	US$ 0.50 per Kg
- 	May		US$ 0.60 per Kg

-  2005                              2006

## 		
        JFK / FRA – May 2005         
		Freight Rate  		US$ 0.45 per Kg      (45.0 %)
		Fuel Surcharge 	US$ 0.40 per Kg      (40.0 %)
		Security Surcharge	US$ 0.15 per Kg      (15.0 %)
		Total Cost		US$ 1.00 per Kg   (100  %)

        JFK / FRA – May 2006  
		Freight Rate  		US$ 0.45 per Kg      (37.5 %)
		Fuel Surcharge 	US$ 0.60 per Kg      (50.0 %)
		Security Surcharge	US$ 0.15 per Kg      (12.5 %)
		Total Cost		US$ 1.20 per Kg   (100  %)
					    (20% increase from 2005)

**        ****JFK / FRA – May 2005         **
- 		Freight Rate  		US$ 0.45 per Kg      (45.0 %)
- 		Fuel Surcharge 	US$ 0.40 per Kg      (40.0 %)
- 		_Security Surcharge__	__US$ 0.15 per Kg      (15.0 %)_
- 		**Total Cost****	****	****US$ 1.00 per Kg   (100  %)**
**	****	**
**        ****JFK / FRA – May 2006  **
- 		Freight Rate  		US$ 0.45 per Kg      (37.5 %)
- 		Fuel Surcharge 	US$ 0.60 per Kg      (50.0 %)
- 		_Security Surcharge__	__US$ 0.15 per Kg      (12.5 %)_
- 		**Total Cost****	****	****US$ 1.20 per Kg   (100  %)**
**	****	****	****	****	****    ****(20% increase from 2005)**
**	****	**

**Average Air Freight Rate**
**(1000 Kg)**

## 		
        HKG / LAX – May 2005
		Freight Rate  		US$ 2.50 per Kg      (82.0 %)
		Fuel Surcharge 	US$ 0.40 per Kg      (13.0 %)
		Security Surcharge	US$ 0.15 per Kg      (  5.0 %)
		Total Cost		US$ 3.05 per Kg   (100  %)

        HKG / LAX – May 2006         
		Freight Rate  		US$ 2.50 per Kg      (77.0 %)
		Fuel Surcharge 	US$ 0.60 per Kg      (18.0 %)
		Security Surcharge	US$ 0.15 per Kg      (  5.0 %)
		Total Cost		US$ 3.25 per Kg   (100  %)
					   (6.5% increase from 2005)

**        ****HKG / LAX – May 2005**
- 		Freight Rate  		US$ 2.50 per Kg      (82.0 %)
- 		Fuel Surcharge 	US$ 0.40 per Kg      (13.0 %)
- 		_Security Surcharge__	__US$ 0.15 per Kg      (  5.0 %)_
- 		**Total Cost****	****	****US$ 3.05 per Kg   (100  %)**
**	****	**
**        ****HKG / LAX – May 2006         **
- 		Freight Rate  		US$ 2.50 per Kg      (77.0 %)
- 		Fuel Surcharge 	US$ 0.60 per Kg      (18.0 %)
- 		_Security Surcharge__	__US$ 0.15 per Kg      (  5.0 %)_
- 		**Total Cost****	****	****US$ 3.25 per Kg   (100  %)**
**	****	****	****	****	****   ****(6.5% increase from 2005)**
**	****	**

**Average Air Freight Rate**
**(1000 Kg)**

## 		
Antwerp – New York | Jan – Mar 2006
		40’ Container 		US$ 1,200.00		(59.0 %)
		Bunker Surcharge 	US$    846.00      	(41.0 %)
		Total Cost		US$ 2,046.00   	(100  %)

Antwerp – New York | Apr – Jun 2006
		40’ Container 		US$ 1,200.00		(58.0 %)
		Bunker Surcharge 	US$    872.00      	(42.0 %)
		Total Cost		US$ 2,072.00   	(100  %)

**Antwerp – New York | Jan – Mar 2006**
- 		40’ Container 		US$ 1,200.00		(59.0 %)
- 		_Bunker Surcharge __	__US$    846.00      __	__(41.0 %)_
- 		Total Cost		US$ 2,046.00   	(100  %)
**	****	**
**Antwerp – New York | Apr – Jun 2006**
- 		40’ Container 		US$ 1,200.00		(58.0 %)
- 		_Bunker Surcharge __	__US$    872.00      __	__(42.0 %)_
- 		Total Cost		US$ 2,072.00   	(100  %)
**	****	**

**Average Ocean Freight Rate**

## 		
Hong Kong – Long Beach | Jan – Mar 2006
		40’ Container 		US$ 1,800.00		(75.0 %)
		Bunker Surcharge 	US$    590.00		(25.0 %)
		Total 			US$ 2,300.00		(100  %)

Hong Kong – Long Beach | Apr – Jun 2006
		40’ Container 		US$ 2,250.00		(78.0 %)
		Bunker Surcharge 	US$    635.00		(22.0 %)
		Total 			US$ 2,885.00		(100  %)

**Hong Kong – Long Beach | Jan – Mar 2006**
- 		40’ Container 		US$ 1,800.00		(75.0 %)
- 		_Bunker Surcharge __	__US$    590.00__	__	__(25.0 %)_
- 		Total 			US$ 2,300.00		(100  %)
**	****	**
**Hong Kong – Long Beach | Apr – Jun 2006**
- 		40’ Container 		US$ 2,250.00		(78.0 %)
- 		_Bunker Surcharge __	__US$    635.00__	__	__(22.0 %)_
- 		Total 			US$ 2,885.00		(100  %)
**	****	**

**Average Ocean Freight Rate**

**Conclusion **
-    Transportation and Fossil Fuel
-    Conservation
-    Renewable Sources of Energy

## Thank You for Your Attention

**Thank You for Your Attention**
**-**
**Questions?**