1973 Oil Crisis
1973 Oil Crisis began in October 1973, when Arab members of OPEC imposed an oil embargo on the United States and other supporters of Israel during the Arab-Israeli War, and lasted until the embargo ended in March 1974.
What happened and why it matters
The embargo turned fuel from a stable expense into a volatile one, and freight pricing still carries that imprint in the fuel surcharge. The price of oil roughly quadrupled, from about $3 a barrel to nearly $12, and U.S. drivers faced shortages, rationing and long lines at gas stations. Truckers protested fuel prices and the new national speed limit. The crisis made energy a lasting pricing issue for transportation, and today UPS, FedEx, LTL carriers and ocean lines adjust fuel surcharges on weekly or monthly indexes, so a brand's shipping cost per order can move even when base rates do not.
Related events
Sources
- Oil Embargo, 1973 to 1974 (U.S. Department of State, Office of the Historian) history.state.gov
- OPEC enacts oil embargo (HISTORY.com) history.com