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Jan 23, 2018
Freight Rates

Pakistan is a growing economy, it needs stability in freight rates to flourish its cargo business locally and internationally

Transportation freight rates are important in cargo business

In cargo business, freight rates are the main players which decide the initial and final cost of cargo goods. To decide Cargo Freight Rates of goods, there are many factors considered into consideration. Freight rates of goods and cargo transportation depend upon the availability of that particular product in the market, seasonal conditions in which transportation is going to be made, availability of transport for a specific product, required to be delivered or transported and above all the price of the fuel. Price of the fuel is the most important in this connection. Now we discuss all these factors separately and in detail, important in the cargo business.

Weather conditions are very important in cargo business

Weathers and seasons are very important in the cargo business. Seasonal conditions may disturb the whole cycle of cargo business. In rainy conditions, freight rate is different and in dry weather the freight rate is different. In summer and winter, freight rates can be different from each for air and Sea Cargo other due to weather conditions of roads, harbors and seawater. Whether freight rates are up or down, cargo business moves on for the whole year and days and nights.

Fuel prices fix the freight rate of any cargo transportation activity

Fuel is the most important thing in transportation. By this basic thing road, railway, sea and air traffic is on the move. A little bit fluctuation in fuel prices has a direct influence on cargo freight rates. The effect of this fluctuation can be seen in the whole business chain. Cargo freight rates go upward and downward due to the price of fuel. All kind of transportation needs it to move and all kind of cargo transportation is directly linked with the fuel prices. The major portion of any cargo movement is due to fuel prices. In the international business market, fuel prices are considered the major part of the whole business of the world.

Availability of goods is the second most important factor in cargo business

In the good seasonal activity, you can get cargo goods on daily basis. It is the ideal situation in cargo business nationally, locally and internationally as well. Availability of goods is very important in cargo business and freight rates are decided by the availability of goods to transport. If you don’t have product available in the market, but you have the demand then you have to manage the goods’ availability for the customer it will definitely increase the initial cost of the project and initial cost increment means the final price will move upward automatically. Availability of goods is very important to move cargo business in a great momentum and flow.

Availability of transportation is a necessary part of cargo business

Availability of goods is important and availability of transportation is very important as well in the cargo business. Sometimes you need to transport things or goods on the urgent basis but there is no transport available to manage that activity. This situation may exploit your wallet and increase the cost or freight rate. The availability of transportation is directly involved in freight rate matter of goods. You can be exploited by the transporter if you are in the condition of emergency.

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