Diesel price development
We are currently witnessing with horror and dismay the events in Ukraine. In addition to the unimaginable human tragedy unfolding in the country, the war in Ukraine is causing immense economic consequences, directly impacting our company. In particular, soaring diesel prices are hitting the transportation industry hard. According to the OMR, the net price of diesel in December was still 114.79 euros per 100 liters, but after the Russian attack, it increased by more than 60 percent to about 185 euros per 100 liters in just a few days. Since diesel costs account for about a third of total expenses in this sector, this translates into an additional burden of more than 20 percent. For many transportation companies, this has reached such proportions that their very existence is threatened, as record diesel prices in some cases significantly exceed their financial limits.
Prof. Dr. Dirk Engelhardt, spokesperson for the Board of Directors of the Federal Association of Road Transport, Logistics and Disposal (BGL), warns, “There is a looming threat of widespread insolvencies in the German logistics and transport industry, which would put the supply of people and industry at risk.” Representatives of the transportation industry throughout Germany point out that, in this context, it will be inevitable to pass on higher prices to customers. Moreover, we are currently unable to estimate if and when prices will recover or whether the upward trend will continue. Therefore, it is essential that the parties involved react as transparently and flexibly as possible, with adjustments in all directions of diesel price development. With retroactive effect from March 1, 2022, we will submit our tariffs for transportation services and freight only in combination with a diesel price increase clause, with fuel costs reported separately.
To secure the economy and logistics in the long run, immediate joint solutions must be found that take these developments into account. After all, the economy cannot exist without logistics, and logistics cannot emerge efficiently from the current crisis without partnership models that can quickly adapt to changes in the economy.