From April, freight rates will go up
Freight rates are expected to increase from April due to rising diesel prices and changes in fuel clauses by clients.
Wholesale diesel prices in Poland have been fluctuating, with a notable decrease recently, but they remain significantly higher than in previous months. According to Angel Kalinov, director of the logistics company Girteka, the anticipated increase in freight rates is tied to a shift by some customers from monthly to weekly fuel clause settlements, which is leading to price increases already by mid-March. Kalinov explains that fuel costs represent approximately 30% of the carrier's expenses, and with a projected 30% increase in fuel prices compared to February, freight prices could rise by around 9%.
The logistics sector operates on relatively slim profit margins, often below 9% in the contractual segment. Failure to adjust freight rates in response to rising fuel costs could result in transport companies running unprofitable operations. This precarious situation highlights the sensitivity of the logistics industry to fluctuations in fuel prices, exacerbating challenges already faced from economic pressures and demand in the market.
Additionally, the European Labor Mobility Institute (ELMI) has called for measures to stabilize the freight market and support logistics companies during this challenging period. This situation reflects broader issues affecting the European transportation sector, as rising operational costs can hinder service viability and impact overall economic activity. As the market prepares for potential changes, it will be crucial for stakeholders to find a balance that allows for sustainable operations amid fluctuating fuel costs.