The recent political upheavals in many of the Arab nations have raised an issue of worry among different governments. Its impact is likely to be seen on the economies of various countries and the worst affected area which is likely to suffer is the crude industry. There has been a considerable hike in the prices of the fuel pertaining to the uncertainty of the crude supply. The unstable political scenario in the Middle East has sent a wave of worry among the energy traders and they are looking out for alternatives to cope with this challenging problem. The trucking industry will be affected by this crisis and the trucking companies are also worried about the same.
The benchmark crude prices have witnessed a hike of 87 cents last week over the continued reports of disturbing situation in the Middle East regions. The oil traders are expecting a completely different market situation ahead of the weekend. The first thing to be affected after the reported fuel hike is the transportation costs. This is one of the major industries which are directly linked to the fuel cost. The truck driver jobs will also be affected by this situation as the overhead transportation costs will increase and the trucking industry will try to minimize the cost on other level to match the fuel costs. This is especially a threat to those truckers who have joined recently and they may be the first ones to face the job cuts.
The owner operator jobs are likely to suffer as this will minimize the profits of the owner operators who work on a percent basis with the trucking companies. All the industries are connected in a chain and the increase in the transportation costs will put its impact on other industries as well. Second in queue are the freight companies which take the services of the truck drivers to make their loads deliver. The trucking companies are likely to charge more from the load board and it will create an imbalance in all the sectors. There is already a shortage of truckers and the trucking industry is providing new truck driver jobs. If the driver job cuts are done, it will hamper the delivery of loads available. In the present situation, the price rise is undoubtedly a big blow and it has come at a very wrong time when the trucking companies are facing many other challenges.
If the political crisis in these nations continues, it will disrupt the chain of demand and supply and the fuel prices may go higher. The economy is already undergoing a difficult phase and managing the businesses is a challenging job. If the fuel hikes persistently goes on, it will affect the functioning of many of the trucking companies and the costs are likely to be adjusted by the cuts in truck driver jobs. The trucking industry will try hard to cope with the tough market conditions but it is a big threat to the drivers’ employment.