Tuesday, January 9, 2018

Transportation

Most Americans are blissfully unaware of transportation costs.   Many who buy from online retailers such as Amazon, QVC and Wayfair seem to think free delivery implies no costs.  The reality is somewhat different.   Most freight in the US moves by truck, and the regulations controlling trucks are changing for safety related reasons.   Truckers will now be regulated by electronic logs which are virtually impossible to evade.   Drivers will have to shut down and rest after a 10 hour shift, whether they have been driving or waiting to load and unload.  While these regulations have been in effect for those hauling "dry freight" for some time, it now applies to all long haul trucking.  The effects on food prices, especially perishables like fruit and vegetables will be felt both immediately and long term.   For many items, like potatoes and other traditionally cheap bulk vegetables, the freight to move them may actually exceed the value of the commodity itself.   This has happened rarely in the past, but will now become a commonplace.  The distribution system Americans take for granted is changing and will become increasingly expensive over time.

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