One of the important cost components to paper manufacture includes freight rates. Mills which produce the
paper grades are typically located in remote locations. Therefore, shipments for both in bound (for raw materials) and out bound (product to end users) tend to be many miles.
Trucking rates, Air transporation, Water, and Rail have all experienced price increases. Many blame the high cost
of fuel (approaching $60/barrel). This continues to place cost pressures on the paper producers.
Friday, June 24, 2005
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