Page 99 - 2017 Hotel Cost Estimating Guide

FREIGHT AND WAREHOUSE PRICING

provided by Audit Logistics

VARIABLES

FUEL PRICES | Fuel prices are directly affected For Gulf and East coast, additional 10-14 days should
by the price of crude oil. Economic growth and be added for goods to travel through the Panama

consumption in the US, China, India, and Europe Canal. For NW corridor, an additional 2-3 days should
remains lat. In OPEC and non-OPEC countries be added. Cost savings could be up to 30%. Routing

oil production is outpacing demand. In November FF&E through various ports in the US not only saves
2016, these countries reached an agreement to cut money, but mitigates risk of delay with regards to port

production by 1.8M barrels per day. If OPEC and strikes. Port workers on the west coast operate out
non-OPEC countries comply with the agreement, oil of a different union than those on the east coast. In

prices could go over $60 a barrel and prices could the event of a contract dispute, freight can be diverted
rise. The election of Donald Trump to President in to other ports to prevent delivery from being affected.

2017 and his “oil-friendly” cabinet appointments will The transportation industry anticipates that labor
also affect oil prices. Prices will be higher in 2017 issues will continue to be a challenge in the future not

than 2016. If the current administration delivers on only in the US, but in other countries abroad.
its promises of lower taxes and more jobs, the result

will be an increase in demand and prices. Industry
experts anticipate prices to rise 32 – 36 cents per

gallon from 2016.

PERSONAL INJURY LAWSUITS |
A large majority
of trucking companies on the road today have an

unsatisfactory rating with the DOT. Hoteliers should
work with logistics companies that vet the trucking

companies to meet minimum safety requirements
so if a truck carrying FF&E for their hotel is involved

in one of these accidents, their risk is mitigated for
ALTERNATIVE PORT CONSIDERATIONS TO SAVE negligent hiring. In recent cases that exceed 25M in
MONEY AND MITIGATE RISK | FF&E sourced
damages, the trucking company, logistics company,
from Asia for projects in the NW corridor, Gulf region, and the owner of the goods on the truck are who the
or East coast should include lead time for shipping
attorneys are targeting all over the US.
product to the closet port of entry from the hotel.

JN+A and HVS DESIGN | HOTEL COST ESTIMATING GUIDE 2017
99