News & Events at AIT

Vaughn Moore, Vice President of Sales and Marketing appears in the October issue of World Trade Magazine. Found on page 20, Moore is quoted in the special section of The World Trade 100 by Lara Sowinski. In the side bar titled, Higher Fuel Prices Affecting Consumers And Supply Chains, the final paragraph contains his insight on fuel.

Higher Fuel Prices Affecting Consumers and Supply Chains...

Throughout the past few months, analysts have become increasingly worried about how rising fuel costs would affect consumer spending in the United States. For the most part, consumers seemed to take prices at the pump in stride, at least during the first half of the year. But the affects of Hurricane Katrina, both immediate and long-term, have thrown everything into question.

Already, Wal-Mart has seen an impact on its lower-income customers. Undoubtedly, other retailers and industry sectors will also experience changes in consumer spending behaviors.

On the commercial side, things aren't much different. Major air carriers have implemented fuel surcharges while ocean carriers have raised the bunker adjustment factor. Truckers, meanwhile, have been slammed with 23 percent rise in diesel fuel this year. And, it's even higher in California, where the state's strict requirements for low-sulfur fuel has diesel now selling for $3 a gallon.

However, "Fuel is something everyone is aware of; people understand why there's a fuel surcharge," explains Vaughn Moore, vice president of sales and marketing for AIT Worldwide Logistics (www.aitworldwide.com). "Our customer base has certainly been affected by it and its changed the pricing for their products. The difference is that at least customers are including fuel surcharges in the price of their products. Previously, they were just eating it."