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From: Arild Jensen (no email)
Date: Thu Jan 03 2008 - 16:36:35 EST
> -----Original Message-----
> From: Dave Cooper
> Subject: T&T: Diesel fuel future costs
>
>
> This response if to the list as I've had many private responses I thought
> the list should get my response.
> The pinch will be felt much more so than in milk, groceries, etc. Look at
> the breakdown of the CPI, Energy costs are the leading inflationary
> component not food, for now.
REPLY
I concur with Dave's assessment.
All other things being equal or at least maintaining the status quo, people
will probably apportion the same dollars for boat fuel as before. However as
fuel price rises this translates into less and less travel miles per year.
Dennis's initial question was directed to distant cruising grounds like the
Bahamas.
These areas will feel the pinch first. Boaters will stay closer to home. If
they do make the trip it means they have less funds available to spend on
other (touristy) things such as dining out and availing themselves of local
services in the Bahamas.
While it's true that a small segment of the population really do not care
what price the fuel is, many others will curtail their fuel consumption.
But now look at the other side. How about the smaller independent fuel dock
retailer. At what point will the coast of filling his ( large ) storage tank
become too big a lump to swallow? Every retailer has some kind of credit
limit with his supplier.
Will his supplier be willing to send a tanker truck to drop only half as
much fuel per trip? And if the marina gas dock only gets half loads
delivered because that is all he can afford, does that mean he might run out
of fuel from time to time? Its a domino effect!
Other economic factors have already contributed to slowing down boat sales
generally. I doubt trawlers are immune.
cheers
Arild
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