The Ever Changing Fuel Prices have its Effect on Cargo Business

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17 Aug 2017
By admin

Cargo transport or cargo business has direct connection with the prices of fuel

In all over the world, cargo transport or goods transport is recommended as the best business because all other business or trades revolve around this business. This business is directly linked with the prices of fuel internationally. The prices of different items in the markets of the world depend upon the prices of fuel overall. If the fuel prices are under control at international level, the freight rates are feasible and if fuel rates are up the freight rates are automatically go upward.

Cargo business of Pakistan can’t afford international fluctuation of fuel prices

Cargo business of Pakistan is directly linked with road transportation. If the fuel prices go up internationally, then transportation charges of cargo or goods disturb a lot. By this slight fluctuation of fuel price affects the cargo business of under developed economy such as Pakistan.

Cargo business of Pakistan mostly depends on private road transport, railway network for cheapest cargo to Pakistan delivery doesn’t suit clients, so they rely on road transport and when freight price go up due to fuel prices, then clients all over the country are in trouble because the cargo business or transportation of different things from the fields to the market become difficult. Cargo business stuck at once.

Different categories of fuels have different prices

Cargo transport use diesel or HI-Speed diesel. It is the most expensive one in all categories of fuels in Pakistan. The freight rates of transportation of goods or cargo freight rates are directly linked with the prices of this fuel. Cargo business of Pakistan depends on the prices of fuel. All cargo vehicles use this fuel and fares and freight rates are calculated on the daily rates of fuels. Fluctuation in fuel prices become the basic reason of the fluctuation of freight rates or cargo rates of Pakistan. Stability of prices of fuel is the main source of stability in cargo business and cargo business is the main hub of any economy.

Government must take some bold steps to promote inland cargo business

Fluctuation in freight rates has become the major source of downfall of cargo business in Pakistan. Inland cargo freight rates are monopolized by different strong groups and clients have to bear these freight rates to transport its cargo or goods.

At the end, this rate affects the customer. When customer doesn’t come to the market to buy things then markets have becomes a heap of debris and cargo business go downward. If Government wants to stabilize the cargo business or markets, it must take necessary action to control the freight rates or cargo transportation charges.

Government knows its potential very well if it takes some serious steps to promote the inland cargo business by dropping the fuel prices then it can generate great inland cargo business. In transportation sector in Pakistan, Government doesn’t show its interest but it is the department on which you can run the whole economy of your country. Inland Cargo business of Pakistan is the most effective industry of the country if it is governed by some specific rules and regulations.

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