Diesel Fuel Pricing Effects on Research Paper

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Total Length: 1897 words ( 6 double-spaced pages)

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Threats:

Loss of industry as prices of oil are unstable due to market fluctuation

Long-term contracts cannot be formulated in the basis of changing prices

Gradual increase in prices can result into economic turmoil as raw materials and finished product prices will be increased lowering the economic process

Conclusion:

The trucking enterprises are significant in creating the United States transportation and freight industry. The transportation of raw materials and finished goods in required as most of the national and international corporations have established manufacturing systems in developing countries to take advantage of the supply chain management techniques. The business is significantly incorporating a market based approach. The influx of products and goods in high demand markets is one of the basic principles in free market economy. The business setup their manufacturing units in rural and industrial districts take advantage of the infrastructure and human resources available in these vicinities. However the cost of transportation form manufacturing unties to the developed markets is also one of the important factor requiring diligent planning and implementation.

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The trucking enterprises spend one third to more of their expenses in terms of fuel and diesel. The given situation creates a direct effect of diesel prices and cost of transportation. The increased cost of diesel fuel cannot be controlled by the internal sources of organization. However there is a fierce need of restructuring the corporation on modern and fuel efficient means. It includes the replacement of traditional engine vehicles with the fuel efficient models. Usage of bio-fuels is also emphasized for its capacity to reduce emissions. It is essential for the business to include light body trucks in their fleets to facilitate the lowered consumption. Moreover the adoption of aerodynamic body designs also help in reducing air resistance and as a result the diesel fuel consumption is also effected......

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