KNX Case Summary

174 Words1 Pages
The most relevant risk factor pertaining to Knight-Swift Transportation is their ability to limit their risk exposure against volatile fuel costs. While fuel cost is currently lower than past years, fuel costs consists of 12% of its total operating costs . Given the volatile nature of oil prices KNX must stay up to date with modeling and analytics to accurately forecasts and hedge against rising costs. Incorrectly evaluating this risk or overlooking the threat can cause profit instability. KNX must continue to enact fuel surcharges into client contracts to help reduce the current risk exposure. The second largest risk for KNX is the enactment of new regulation. Recent policy changes enhancing restrictions on hours-of-service and fuel emissions