View Single Post
Old 09-20-2013, 05:11 PM   #64
legion
Lard Council
 
legion's Avatar
 
Joined: Jan 2003
Location: Alaska
Oddometer: 12,483
Quote:
Originally Posted by Brendon@TMS View Post
My point is the theory of globalization will be severely impacted by rising fuel costs. The notion of globalization relies on the assumption that one can transport things for a nominal fee. If that fee becomes several times it's assumed rate business models will change accordingly.

I'm sure you're right but let's use a random example and see how much of a difference it may make:

R1200GS MSRP $18785 (2014)
R1200GS Weight @ 520 #

I realize that shipping between WA and AK is not an issue however, just as a benchmark of value...

The highway distance between WA and AK is roughly 2500 miles.

The steamship distance between WA and AK is roughly 1700 miles

Cost to move the bike that distance on the steamships at @ $30.00 per hundred pounds = $156.00 for the 3.5 day service.

$156 dollars is approximately 0.8% of the cost of the machine.

If costs were to spiral out of control and suddenly a gallon of fuel for your car went from $4 to $20 you'd still be looking at a fairly small piece of the overall cost of any significant purchase. Small replacement parts and the like would be hit at a disproportionate rate but freight for items of value will not soon be a determining factor.
legion is offline   Reply With Quote