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Challenges in the Freight Industry

There are many challenges in the freight industry which companies must overcome if they are to survive. Below are just some of these challenges that us freight companies are presently facing.

Rising Oil Prices

Oil prices are a fundamental requirement for freight industries, and the increasing price of this commodity means that freight companies must find a way to accommodate this price rise whilst remaining profitable and competitive. This is a problem which is not likely to go away as the earth’s supply is drained away.

Increased Competition

Regardless of the type of freight that a company offers there is always a great deal of competition for their business, both domestically and from overseas. If an area is profitable, as the freight industry is, there will always be companies looking to get a piece of the action.

Extreme Weather Condiditions

Adverse weather conditions are one thing which can never be controlled and perhaps the one thing that can have the most dramatic effect on the freight industry. If the weather becomes so bad that freight companies cannot operate then companies risk losing profits in lost business as well as any repairs that may be needed to carriers. Air freight is perhaps most susceptible to bad weather.

Increasing Taxes

Increased taxes can be a challenge to the freight industry due to the fact that any import and export taxes will have a direct effect on the bottom line of freight companies. 

International Restrictions

Countries can change their legislation regarding incoming and outgoing freight at any time. If a freight company does a lot of trade in one country then suddenly that country’s government restricts the movement of foreign freight there is nothing much that the company in question can do.

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