EnviroHumanImpact

Lloyd Alter discussed in a recent article that as oil prices have increased (yes, of course, they have dipped down slightly recently) China has exported less steel to the U.S.  Check out his article or keep reading:

Lloyd talks about some of the political and economic implications of such a shift, but let’s look at the environmental effects.

Here, again, because of rising costs of fossil fuels, we see decreased consumption.  Suddenly, the difference in the cost of labor between the U.S. and Chinese markets, is eaten up by high oil costs.  From the article:

Rubin continues: “Shipping a standard 40-foot container from Shanghai to the US Eastern seaboard now costs $8,000. In 2000, when oil prices were $20 per barrel, it only cost $3,000 to ship the container. But at $200 per barrel, it will soon cost $15,000 in transport costs to ship from China to the US Eastern seaboard.”

Wow!  What a difference!  I had no idea it was that high of a cost to move something across the ocean (though I suppose I never had given the financial costs much thought).  This just goes to show that increased fossil fuel consumption and costs can force people to rethink the way that they act — and this is probably truer for companies moving many tons of heavy stuff (such as steel).

Let’s just hope that not only does this spark a large green energy industry, but also perhaps some manufacturing jobs of yesteryear return to the U.S. as well.

One other note: with the cost of iron ore also increasing, perhaps recycling rates and more importantly, required recycling programs, will increase as a manner of combating that high cost.  The environmental effects of mining for more ore and processing it versus recycling are high and extensive.

How are increased fuel costs affecting the way that you behave?

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