News / Oil price volatility will hit owners of road freight assets hard, says analyst

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The increasing instability of oil prices looks set to further jeopardise the future of transport and logistics operators.

And in particular, smaller road freight firms unable to withstand sudden fuel price increases.

According to new analysis from Transport Intelligence (Ti), fuel usually represents “25-30% of the variable and semi-variable costs of a vehicle”.

“Such companies are going to be quite vulnerable to fluctuations in the oil price as they lack the financial robustness and in particular the cashflow position, to absorb sharp rises ...