Iran War: “Effects on consumer prices are obvious” – High diesel prices burden freight forwarders | EUROtoday

The sharp rise in diesel costs is placing a major pressure on the freight forwarding business. Since the start of the Iran conflict, the value has risen by round 40 cents per liter, stated Dirk Engelhardt, head of the Federal Association of Road Freight Transport, Logistics and Disposal (BGL).

With a month-to-month mileage of 10,000 kilometers and a consumption of 30 liters per kilometer, this ends in extra prices of round 1,200 euros per thirty days for a truck. With a fleet of fifty autos, this provides as much as greater than 700,000 euros per 12 months. “It is obvious that sooner or later this could have an impact on consumer prices,” emphasised Engelhardt.

The transport business is asking for short-term authorities aid in view of the sharp rise in diesel costs. According to Engelhardt, fast and unbureaucratic measures are essential to safe corporations’ liquidity and keep provide chains.

Among different issues, a brake on diesel costs is required with a view to restrict the burden on corporations and stop insolvencies in medium-sized companies. A refund of the CO2 tax on diesel or a suspension of the CO2 part of the truck toll are additionally conceivable. It is essential that the measures attain the transport corporations in a focused method and straight.

According to the BGL, to guard themselves towards worth fluctuations, many corporations depend on so-called diesel floaters, that are worth escalation clauses agreed in particular person contracts that work in each worth instructions. However, these usually took impact with a time delay and will solely cushion the present burdens to a restricted extent. “Many small transport companies, on the other hand, do not even have such security mechanisms – the costs are immediately noticeable,” BGL boss Engelhardt made clear.