How the Conflict between Ukraine & Russia Impacts US Trucking

All,

As the war among Ukraine & Russia keeps to resolve and the ensuing sanctions shake the widereconomy, we desired to proportion how we at MorPro believe this can effect your business (& lives) right here withinside the US. As we see close to 100K+ masses in line with day, we’ve a short pulse on how the marketplaceadapts to international events.

What to Look For:

Fuel Prices

What’s Happening: Russia is the world’s second largest oil exporter. Although, the US sanctions currently do not apply to energy commodities, the anticipation of continued disruptions & unraveling of existing partnerships with Russian oil companies are sending average diesel prices up to $4.10 per gallon.

How to Prepare: Fuel management will be key as rates slowly climb upwards to reflect higher costs. Don’t be afraid to bid an extra 5-10% higher; depending on the lanes, fuel costs can be exorbitant & you want to make sure you’re still taking home a healthy profit. Make sure fuel surcharges are reflecting the latest changes and try to eliminate empty miles as much as you can. 

Inflation

What’s Happening: Russia is the world’s largest supplier of wheat and Ukraine accounts for around 12% of global wheat supply and about 16% of global corn exports. Together, the two countries also account for 80% of sunflower oil, which is used in food processing. 

How to Prepare: Giant food companies such as Kellogg’s & Coca-Cola have all warned of double-digit inflation to take place in the coming months. Although these increases may flow into higher rates, for those with drivers, it’ll be important to manage your costs to stay competitive in the industry. 

Air Freight

What’s Happening: Analysts are predicting ~10% reduced capacity in air freight as companies have to navigate around Russia to ship their goods.

How to Prepare: Expect rates to stay at peak levels as lower supply meets sustained demand across the globe. If you keep in mind some of the tips above, you’ll be able to continue to meaningfully navigate the current market all while doing what’s most important — keeping goods flowing. 

Let us know if you have any feedback or questions & we’ll continue next week with more in-app updates & launches! 

Let’s go!