If it wasn't for an immediate diversion of diesel supply a few weeks ago, we would be looking at mass shortages and runaway diesel prices NOW on the East Coast. I was already getting reports from my vendors in Eastern NC about shortages popping up until somehow our inventories shot up a bit at the last minute. Something or someone hit the brakes but nevertheless we're still looking at shortages and high prices.. it's only a matter of time before the backs of transportation/logistics companies get broken over this bullshyt. For example, I've had to raise my fuel surcharges three times in six months to keep lock step with diesel prices.. it's eventually going to get to a point where I'm going to have to start modifying our routes and potentially cutting off "newly unprofitable" customers.
In relation to that..Late July through August is when people are REALLY going to see the shyt get nasty with fuel and food. It's such a confluence of extremely adverse events at that junction in time that it's ridiculous. People don't realize they're paying high ass prices RIGHT NOW for LAST YEAR'S harvests..the new crops come to market and get reported in Chicago by LATE AUGUST for the September CBOE report. I've already been told to expect IMMEDIATE rises in food prices from there on out. Mind you, all of my major customers have told me their numbers have been treading lower NOW..the high prices NOW are starting to make the consumer hold off. What you think is going to happen when gas hits 8-9 dollars a gallon, diesel hits 11 a gallon and food prices double going into winter? Nothing good.