GLOBAL RESOURCES ANALYSIS
EFFECTS | LESS TRANSPORTATION
The effect of high energy prices on transportation will be less. In one truck 'travel' a huge number of products, so no matter to what level transportation costs rises by higher energy prices: the cost of transportation is 'shared' with a huge number of products. But by high prices long distance road transport will become much more expensive and will be reduced by market mechanisms severely. Driving the independent truckers into bankruptcy because their capacity is used by transport corporation to fill the flexible area between supply and demand.
Author: Gijs Graafland
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