The Philippines today is facing a crisis besides inflation, which is the price increase of fuels, and drivers within the country have no choice but to comply with the prices given by gas stations. As the country is known for its vast public transportation, they also raised their rates, which means commuters are affected, as they pay a higher fare for transportation.
The shipping industry is also affected by the high fuel prices, for they use freights to transport goods and large gas consumption, depending on what kind of transportation they use. (Freight can be via truck, train, ship, and aircraft).
Domestic freights forwarding is known as transporting their cargo somewhere within the country, while the other one is international freight forwarding for their transportation can be somewhere around the globe. This means the farther the delivery location is, the more the cost spend on fuel; that is why freights are also affected.
International freight forwarding companies are one of the products that contribute to stabilizing the country’s economy, for they transport bulk goods and make trades with other businesses in different countries. One of the Philippines’ freight logistics companies is Excelsior World Logistics World Corporation. They make trades with varying firms around the globe, including Russia and Ukraine. One of the reasons today’s fuel had a high price besides the COVID-19 lockdown is the Russian invasion of Ukraine. Russia is one of the major oil producers in the world. Due to their conflict with Ukraine, several countries cut ties with Russia, making other countries find other sources of oil producers, which caused a significant factor in high fuel prices.
There are multiple factors why fuel prices tend to increase and why it affects every country’s economy. If you want to know more about how this fuel crisis affects the shipping industry, check out this Excelsior World Freight Logistics Corp infographic.
