The Indian trucking industry has seen some development in the last few years. This sector however will soon face driver scarcity due to its rapid growth. The major concern that this sector faces today is the hike in fuel prices.
The latest hike in fuel prices is posing a threat to the trucking industry. While corporations in this business are providing for an increase in loads and volumes, the fuel hike is affecting them immensely. Small trucking establishments are shutting down on the primary reason of increased fuel costs. For these firms higher fuel prices translate to an increase in their charges, which in turn pushes trades away. Many corporations have specified that the rise in fuel prices have caused them to decrease their vehicles in the fleet as well.
Another consequence of the rise in fuel charges is the cutting down on drivers. The proprietors also are expected to suffer with the fuel hike as it will reduce the earnings of those who work on a percentage basis. The price hike will eventually lead to a domino reaction, negatively impacting other trades in the commerce chain as well.
If this administrative calamity keeps on growing in the country, it will upset the chain of demand and supply and the fuel costs may rise even higher. The working of many trucking corporations will be disturbed and their expenses are likely to be adjusted with a reduction in trucks. For an economy already in the midst of a tough period, handling this issue will prove to be extremely challenging.