Oil prices affect the cargo business all over the world

In Pakistan, fluctuation in prices is a common thing but its side effects are very dangerous. Fluctuation in oil price has a direct impact on every single business. Trade and business are directly related or interlinked with transport department. The slight fluctuation in oil prices is the real cause of the increase or decrease of prices of each and every thing. Market stability disturbs a lot by this fluctuation.

Internationally, it is not a good sign, so other countries hesitate to do business with these fluctuated economies. Pakistan is a growing economy; if it wants international business on its side, it will definitely show the stability of the market or stability of prices of different things.

In transportation department, oil is the main source that decides the freight rates

Strong economies stand on strong and stable rates of their products. Oil prices suggest the rate of the carriage. In strong economies, there is no change in transportation rates for decades but in un, stable economies rates go upwards and downwards on daily basis. Stable economies are strong economies. Transportation is involved in each and every business. Without sea or Air Cargo goods carrier or transportation, there is no trade in the market, so transportation is the back bone of trade or each business. It is the main item that suggests the freight rates on daily basis.

In Pakistan, this problem is very common due to lack of good management in the government sector and secondly, there is no policy regarding check and balance of prices. It affects the business. If the inland business goes disturbed, means international trade might be at risk also.

Inland cargo department is exploited and bound to increase freight rates

Oil prices are fixed internationally. Strong economies don’t feel a little bit fluctuation on daily basis but economies like Pakistan can’t bear the ups and downs of oil prices. Their trade business and cargo business is affected badly by a minute slump or increase in oil prices internationally. Transporters are bound to increase Cargo freight rates. Clients are annoyed by this turbulence and the equilibrium of business or trade get disturbed a little bit. Stability requires strong and solid economy or strong policy regarding the stability of oil prices. Trade business totally depends on oil prices. The government should realize this.

In international cargo business, inland expenditures decide your profit and loss

Inland expenditures add in the cost of international consignment or shipment of cargo goods. Though international freight rates are fixed by different agencies fluctuation in oil prices has its effect on international cargo business. By the help of strong check and balance of the international organizations of cargo and trade, control the fluctuation but inland there is no strong check and balance about price control of different things especially oil, so inland freight rates are sometimes more than the international freight rates. This will cut short the profit ratio of the businessman. Internationally, these rates are fixed but locally especially in Pakistan, there is no strong network which monitors the price of different goods, things, and commodities on daily basis.