Examination of the Interrelation Among the Price of the Fuel, the Cost of Transport Freight and the Profit Margin

A. Papana
Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece

A. Papana
Cleveland State University, USA

M. Dagiasis
Phalanx Logistics Solutions, Logistics and Supply Chain, Cleveland, USA

D. Folinas
Alexander Technological Educational Institute of Thessaloniki, Branch of Katerini, Greece

The investigation of the variation of the prices of fuel and their interrelation with the cost of hauling freight and how this effects profit margins for various freight transports (ie. carriers), is of great interest for all players in the supply chain (suppliers, manufacturers and carriers). Although supply chains may vary from country to country, the end result will help establish trends that can be used to further identify links between various markets both domestically and internationally. This paper aims to examine the interrelation of the daily price of fuel, the cost of hauling freight from various US geographic locations and the profit margin that various freight haulers may have thereof. Data for the three aforementioned variables will be analyzed over a period of 4 years. The conclusions of this work can be helpful in the cost accounting of provided logistic services from a company concerning the prices of oil, aiming to help the company check the costs and the margin of profit. The conclusion of this work will help various players in the supply chain determine how the chosen variables affect net profit.

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