Increased Diesel Tanker shipping rates shows the increase in demand

It is simple economics to know the price increases when there is a shortage of a resource.

NJ.com (Bloomberg) has an article on the increases in diesel shipping costs on the East Coast.

Phillips 66 and Hess Corp’s New Jersey refineries remained shut today, three days after Atlantic superstorm Sandy struck the East Coast. Earnings for tankers shipping diesel to Europe from the U.S Gulf increased by more than fourfold to $12,349 a day, data from the London-based Baltic Exchange showed today.

“So many ships are stuck in New York and running late, and the pipelines are closed, so everything is being sourced ex-U.S. Gulf,” Martin said by e-mail. “It has made a massive impact on this market.”

It would seem like diesel fuel is a scarce resource and someone is going to run out of diesel.