Trucking accelerates prices

In the current years, prices for road transportation services in Russia and truck dispatcher online course have increased by an average of 15-20 percent, and in some areas there is an even more significant increase in tariffs, say market participants interviewed by Expert. “Price growth in truck logistics is currently affected by restrictions related to the pandemic, the shortage of road permits that arose in the fourth quarter of this year, economic sanctions, the increase in rates over the past year, which, for example, in the direction of the EU – Central Asia amounted to an average of 15- 17%, while the Chinese market has risen in price by more than 30%,” points out Valeriy Buksha, business project development manager at Stalogistic logistics company.

A significant factor in the increase in prices for road transport are the soaring rates for shipping by sea. “The economy is recovering unevenly after the pandemic, which could not but affect the logistics industry,” says Nikolay Gladun, director of business development at Gebrueder Weiss. – Due to the fact that by the summer of 2021, sea freight rates reached their maximum values, companies had to change their usual supply chains and look for alternative solutions. Many have switched to the transportation of goods by air, road and rail. As a result, tariffs for these types of transport have increased several times. It can be said that road transport is now almost equal in cost to sea freight. Depending on the directions, according to our estimates, road transportation has risen in price by 15-20%. In domestic transportation, rates increased most of all in the Moscow region and in the direction of the Krasnodar Territory.”

However, the rise in prices largely depends on the direction of transportation. “In a number of key areas, including those connecting Moscow with St. Petersburg, Yekaterinburg and the Krasnodar Territory, prices increased by 50-100%,” says Vladimir Gai, commercial director of the Modul logistics company. — However, companies operating at long distances note that in their segment, tariffs increased by only 5-7% over the year, with an increase in costs by 10%. Transportation of oversized cargo has not risen in price. The main increase is yet to come, with many completing long-term contracts signed at the peak of the pandemic. Now expectations are much more optimistic, the industry will no longer confirm the ultra-low price, just to get guaranteed volume for the year ahead.”

Significant pressure on the logistics industry is also exerted by an increase in the cost of commercial vehicles, fuel, changes in tax regulations, as well as problems with personnel. “Only in the first quarter of this year, on average, prices for trucks increased by 5%, now there is another round of growth in prices for trucks and trailers, the growth reaches 10%,” says Anton Sklovets, an analyst at Freedom Finance. – Of the other factors, one can single out a shortage of personnel. There is a tendency to leave the profession (a consequence of low salaries and increased workload), the remaining drivers are clearly not enough to cover the demand. The problem of personnel is acute, as companies are not going to increase the level of income of drivers, and the norm of working hours per day is at the limit. Growth in fuel amounted to a little less than 2% over 9 months. The closure of the Moscow Ring Road for transit heavy and medium-sized trucks led to the need to rebuild and lengthen routes and increase costs as a result. Another factor in the rise in prices was the abolition of the single tax on imputed income (UTII).

“Since July of this year, the cost of fuel (propane-butane) has increased by 6 rubles. – from 28 to 34, or more than 20 percent, – Rafail Kupaev, general director of the Gruzovichkof service, complains in turn. “Problems with passes also have a negative impact on the quality (efficiency) of order fulfillment, and there are also more and more fines, especially for parking on lawns.”

Market participants say that against the backdrop of continued price increases, for example, for cars and fuel, road transport tariffs are likely to continue to rise in the coming months. Although the scenario is not ruled out, that already at the beginning of next year, the prices for trucking may creep down. “Until the end of 2021, the rates will grow, reaching a peak around Christmas and New Year,” predicts Vladimir Frenty, a leading specialist in intermodal transportation at the Daxer logistics company. “Further on, the demand for logistics will decrease, and already in January-February 2022, the situation will normalize, and transportation will become cheaper.”

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