Increase in the price of diesel fuel
We are filled with shock and horror when we see what is currently happening in Ukraine. In addition to the unbelievable human tragedy that is unfolding there, the Ukraine war is having massive economic consequences – and they are also having a direct effect on us as a company. The enormous increase in the price of diesel fuel in particular is hitting the freight forwarding sector hard. According to OMR, the net diesel price in December 2021 was still EUR 114.79 / 100 l, but it has increased by more than 60 percent to a net figure of approx. EUR 185 / 100 l within just a few days since Russia launched its attack on Ukraine. Given that the cost of diesel fuel accounts for about one third of total expenditure, this means additional outgoings of more than 20 percent. This has now assumed a proportion that poses a threat to the ongoing existence of many transport companies, because the record prices for diesel fuel exceed their financial point of no return, to a substantial degree for some of them.
Prof. Dr Dirk Engelhardt, the Spokesperson for the Federal Association for Road Transport, Logistics and Disposal (BGL), is issuing a clear warning. “We’re threatened by a wave of insolvencies in the German transport logistics business. This would pose a risk to supplies for the population and business.” Representatives of the transport sector from all over Germany point out that, in the light of this, it is inevitable that the higher price will be passed on to customers. Then there is the fact that we cannot yet assess whether and when the prices will recover again or if the upward trend will continue. It is therefore essential for those involved to be able to respond with changes to any developments in the price of diesel fuel in a manner that is as transparent and flexible as possible. As a result, we will now only present invoices for our transport services and freight tariffs in conjunction with a diesel price escalation clause with separate statements for fuel costs, backdated to 1 March 2022.
In order to safeguard the economy and the logistics business in the long term joint solutions that take these latest developments into account need to be found in the short term. The industry cannot continue to exist without logistics services and the logistics sector will not be able to emerge as a productive force from the current crisis without flexible partner models with the industry.