Originally Posted By: jludwig
Originally Posted By: esshup
I just bought 4 bags of AM600 on Tuesday. My price increased about $2/bag. But, since the price of diesel is higher, maybe some of the increased prices that you guys are seeing are also increased transportation costs in addition to increased raw material costs.


Transporting costs are probably a huge factor here. Everybody blamed the price of wheat on the price of bread going up.... but with wheat at $9.00/bushel.. there is a 11 cents in one loaf of bread.


Fuel charge on average is 1 cent per mile for every 6 cent increase in diesel per gallon at the pump. That covers shipping for atleast 40,ooo# of freight. The numbers I looked at last week says it currently takes a average of 58 cents per mile to haul frieght even though I show it higher in actuallity. A lot of staes allow 88,000 GVW on the back roads (Class 8 Trucks max rating is 92,500 GVW in most applications). If the federal governement would increase Interstate commerce to the 88,000 level it would instantly cut the cost per mile on alot of freight shipped by near 20%. This in turn would allow for a smaller carbon footprint, cheaper gas because demand would drop for fossil fuel.
This will never happen as the government lines its pockets by forcing transportaion to buy more fuel. Considering Diesel has to pay 6 cents per gallon more tax than gas. My figure show it takes 9 cents per mile for hauling Class 8 freight just to pay the taxes on diesel fuel in 2012. And I do not even want to make my blood boil by going into the cost of shipping increase due to EPA Clean Air over the last 10 years.
/off sopabox