As the Iran-Israel conflict continues, the shipping industry could soon see the Iran war impacting trucking. A war that has been growing over the last few decades has escalated with recent US involvement. Numerous industries and global supply chains that rely on goods such as oil have felt the strain of the conflict. For example, approximately 20% of the world’s oil and liquefied natural gas (LNG) comes from a location near the conflict. While the war will significantly impact international shipping, it will also directly affect domestic goods movement. This article explains how the war could affect domestic shipping and how to protect your cargo during this time.
How Is The Iran War Impacting Trucking?
While the war is taking place in a country outside the US, it is already affecting the trucking industry in various ways. With nearly 20% of the world’s oil coming from the Strait of Hormuz, oil prices have significantly increased. Global crude oil prices have risen by over 40%, driving diesel prices higher. In turn, operating expenses for US truckers increased, as diesel is a primary oil fuel for trucks. Carriers have begun raising rates to cover the rising operational costs. Trucking is also being affected by supply chain disruptions caused by the conflict. The Strait of Hormuz is also a shortcut for shipping cargo internationally and to the US. Delays in the Strait result in unpredictable cargo volumes, affecting freight availability for carriers moving cargo out of ports.
How To Ship Domestically During This Time?
With trucking impacted by the war, shippers must be prepared for domestic shipping. This can include planning for higher prices driven by higher fuel costs. Locking in a carrier to secure a rate or ship earlier can help as prices rise. Shippers should also expect delays and be prepared to build extra lead time in delivery schedules. If possible, using alternative ports for drayage pickup can help alleviate congested areas. Importing goods such as sugar, fertilizers, and aluminum from locations outside the Strait of Hormuz may prevent bottlenecks from forming. Shippers must stay current with news developments regarding the war and its potential impact on cargo movement.
Despite the current conflict in Iran disrupting supply chains, it should not halt trucking at this time. Shippers should, however, take the proper steps to prevent disruptions such as delays, financial losses, and cargo loss. Along with the tips listed in the article, speaking with a freight broker like A1 Worldwide Logistics can be beneficial. Brokers act as middlemen between shippers and carriers, coordinating the movement of goods on behalf of the shipper. They do this by offering solutions such as negotiating rates, providing paperwork, consultation services, and more. Reach our brokers at info@fsinc.com or 786-756-8795 to request a quote to begin moving your cargo to the final destination.