The cost of shipping by sea is going up, way up. For shipments to Northern Europe, the increase on a 20′ container will be $750, a 40′ container will be $1,000 and for the 40′ high cube it will be $1,200, commencing July 15.

You would think that after coming out of a recession that there would be plenty of capacity and shipping lines would be looking for ways to fill that capacity. However, some shipping lines have gone to a policy of slow-steaming which means that containers are on the water longer, thus increasing turn-around times. (Slow-steaming is an attempt to reduce oil consumption.) And during the recession, no-one ordered any new containers.

As a result, not only are costs going up, but the amount of capacity is dropping extremely quickly. Thinking of shipping by sea? Plan ahead, way ahead. And be prepared to pay.

The price of oil is down about 3% from yesterday, yet the price of a litre of gasoline keeps going up. The stations I passed on the way to work today were showing $1.019/L.

Has anyone been into a PetroCanada station in the last couple of days for gas? Did you notice the sticker on the pump that shows the breakdown of the cost of gasoline? Given that breakdown the price of gasoline should be in the $0.65 – 0.70 range. How can they justify the current pricing?

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