http://benmuse.typepad.com/custom_house/2008/06/will-the-rising-price-of-oil-choke-off-the-global-trade.html HIGH COST OF CARGO SHIPPING COULD "REVERSE GLOBALISATION," REPORT SAYS
Rising international shipping costs driven by high oil prices could effectively wipe out decades' worth of trade liberalisation, according to new research from CIBC World Markets.
By making it substantially more expensive to ship cargo over long distances, higher freight costs are likely to change global trade and production patterns, said the Canadian investment bank. They may also make it easier for domestic manufacturers to withstand competition from lower-wage countries.
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"At today's oil prices," they write, "every 10 percent increase in trip distance translated into a 4.5 percent increase in transport costs." While shipping a standard 40-foot container from Shanghai to the east coast of the US cost US$3,000 when oil was at US$20 per barrel, it now costs US$8,000. If oil goes up to US$200, the cost would rise to US$15,000.(more)
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These high fuel costs are also very significant in the price of agricultural commodities to those countries that import much of their food.