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Lower Gas Prices & Effects on Shipping Prices

Nationwide gasoline prices have been decreasing in significant amounts. In some states, you can now get a gallon of gas for less than $2.00. This always begs the question what will happen to pricing across gasoline-dependent industries. As the petroleum industry itself suffers and struggles to turn profits across the globe, it’s natural for consumers to determine prices across peripheral industry.  But this isn’t typically case.

For example, when you are charged a delivery fee, it includes expenses other than just the price of gas. This extra payment goes towards wear and tear on the transportation vehicle as well as any damage that might incur to the transporter or his vehicle during delivery. Then the company has to turn a profit while paying for labor. Prices tend to fluctuate very little with changes in gas prices, actually.

Moreover, although gas prices are declining now, they are indefinitely going to spike at some point or another in the relatively close future.So if delivery and automobile-reliant organizations cut prices, they would only expect to spike them again in the not-so-distant future to account for a spike in oil prices. This makes the company look inconsistent, and consistency is what keeps the customer coming back. Consumers don’t like surprises.

It’s also important to understand that while gas prices are going own nationally, they are decreasing at different rates in different states and even in different cities within those states. This means that there is inconsistent pricing, making it difficult to decide on how delivery and shipping prices should be lowered. Gas is significantly cheaper in the south than the north, so companies struggle with which price they should based charges on. As a result, they keep their prices as is.

So lower gas prices usually don’t mean less expensive delivery and shipping rates. However, this also means that pricing stays consistent and fair for all customers. And, since prices are not being lowered, the won’t be required to increase when gas prices even out and return to a constant price in the United States.

The evolution of car carriers

When people think about car transport, often their mind jumps to pictures of hulking car carriers that guzzle diesel while transporting thousands of pounds of metal across the country. You could forgive a lot of people for assuming that this process isn’t exactly environmentally friendly. However, there are some advances in car shipping methods that… Continue Reading