June Fuel Surcharge
May 30, 2008

Crude oil continued to surge thru out May hitting the $135.00 US per barrel mark. The trading range has settled in at around $127.00 to $132.00 US per barrel. Increasing gasoline inventories seem to be pushing the oil companies to increase margins on diesel fuel to replace lost margins on weak gasoline sales. Even though a US economic recession should be reducing demand for oil, the opposite is happening because of China and other developing countries increased appetite for oil. The earthquake in China is also driving diesel fuel

demand as the country scrambles to produce diesel generator power to replace energy lost due to the damaged Hydro dams. Speculative investment funds sitting on large amounts of cash after bailing out of the stock market have been speculating heavily in crude futures, thereby pushing up the prices. We will therefore be raising our fuel surcharge to 34% from 30% effective June 1st, 2008. Diesel fuel prices continue to climb as oil companies adjust their rack prices. If this continues for too long, the trucking industry and other transportation modes will experience business failures.

We will continue to evaluate the surcharge again at the end of every month. This is a very unpredictable atmosphere to do business, however these measures need to be taken to ensure we remain profitable. Thank -you for your patience and understanding in this matter.

Best regards,

Greg Arndt
Vice-President
Jade Transport Ltd.

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