Gas Prices Affecting Trucking Volumes
With the current economy climbing out of a deep hole worldwide, the prices of gas are still growing higher and higher. This can only work against the businesses which are trying to dig themselves out of the red and into the black. Many companies have no choice but to have trucking companies handle their cargo. So instead of paying increased shipping fuel costs they start shopping around for better prices and replace finding the best shipping company for their needs with finding the one with the best fuel costs. Meantime, every trucking company is going through the same fuel cost problems and so the cycle continues and nothing really changes. Fortunately despite the fuel increases, progress is being made. In the US alone, there has been at least a slight increase each month in the overall volumes for freight trucking. The freight rates seem to be staying steady as well which can also be a good sign. As we see the economy battling its way up, we should see continued growth in cargo shipping although we cannot be sure until the positive numbers are reached. In the end, the economy is based on supply and demand. So as long as there is demand for the products, the trucking companies will still be moving cargo regardless of the fuel costs. And most trucking companies are already passing those costs on to their customers directly in the form of fuel surcharges. With everyone working toward a common goal, the volumes do not look like they will be lowering any time soon.