Mar 10 • 10:25 UTC 🇵🇱 Poland Rzeczpospolita

Road freight prices rise

Wholesale prices at Orlen have surged to 6359 PLN per cubic meter of diesel, significantly impacting road carriers.

The rise in wholesale diesel prices at Orlen, from 4777 PLN on February 27 to 6359 PLN now, has greatly affected road carriers in Poland. The president of the West Pomeranian Association of Road Carriers, Dariusz Matulewicz, noted that fuel costs now comprise about 30% of transportation expenses, meaning a 30% increase in fuel prices leads to a roughly 10% increase in overall costs. Since many transportation companies are already operating on thin margins with profitability at just 2-3%, this surge in fuel prices risks pushing them into losses.

Road transport operators are particularly worried not just about the high prices, but also about the availability of fuel. Grzegorz Chełminiak, a carrier from the Kujawsko-Pomorskie province, reported that fuel prices increased between 2.2 PLN to 2.3 PLN per liter, translating to a weekly loss of 3500 PLN for him when refueling in Poland. This financial strain could lead to a ripple effect on the logistics and supply chain, especially for businesses that rely heavily on transportation services.

The current situation raises concerns about the competitiveness of Polish road carriers, as clients are resistant to accepting price hikes. These pressures, combined with the increase in demand for suburban small warehouses, highlight the shifting dynamics in the transport and logistics sector. As companies struggle to absorb these costs, there may be a reassessment of pricing strategies and operational efficiencies in the coming months.

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