Reference no: EM131066235
I. I need a 3 to 5-page paper for my Logistics and Transportation class on:
1. How the fluctuating prices of oil/fuel impacts the Transportation industry?
2. Discuss each mode of transportation
3. I need credible references
This is a copy of the outline I turned into my professor.
II. The fluctuating prices of oil affects just about every industry in the US economy, especially the transportation industry (PLS Logistics, 2015). As the cost of fuel rises this becomes a significant impact on the costs of certain products which can result in higher prices for consumers. The effects vary by each mode of transportation.
A. The trucking companies benefit the most with lower oil and fuel prices. When oil prices drop trucking companies can concentrate on meeting demands, rather than fuel savings.
B. The airline industry benefits the most when fuel prices drop, especially since it is one of the airlines largest expense.
C. The maritime industry benefits long term and short term with lower prices. The lower fuel prices allow the shipping industry to use more vessels and a variety of vessels.
D. The railroad industry will see some benefits in lower oil prices, but "the drop in oil prices will mainly hurt business for rail companies the drop in oil prices will mainly hurt business for rail companies" (PLS Logistics, 2015).
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