Across town trucking can cost more than 1000 miles of linehaul due to the combination of hourly wage and the fuel inefficiency of smaller vehicles playing out over short distances. This is more significant when you compare the various steps of mode (truck to rail to ocean liner shipping) and the extension of the distance.

The longer the distance and the less the friction, the lower the energy cost per lb/kilo. In absolute/aggregate energy outlay cost terms long distances can be far cheaper than versus short when the long distance delivery employs a more efficient supply chain.

Efficiency is achieved by delivering the largest possible practicable volume; &/or if piece delivery cannot be avoided then leaving that deconsolidated final delivery to the shortest possible distance; and then only using a final delivery operator with the highest economy of scale and the highest probability of not getting an unattended final delivery address / misdelivery.

Bad news for energy inefficient Fedex & UPS air hub/spoke networks. Good news for postal services and operators of traditional supermarkets / cash and carry stores (relative to home delivery).

Higher energy costs made UPS / Fedex remove their national common rated delivery tariffs many years ago but it also see them undermine their business due to customers rebuilding their regional warehouse networks and supplying thm direct from offshore. Suppliers with sufficient operating scale to efficiently operate warehouses closest to market (post real estate bubble) will extend their absolute advantage if energy costs continue to rise.

So the market gardener delivering produce 30-50 miles away on his little truck gets trumped in spades by the efficient broad acre farmer with the efficient supply chain. For all our sakes long may it be so.