The costs for road hauliers have increased by six percent so far this year, some are considering the end

According to a survey by Česmad Bohemia, as many as 28 percent of road hauliers are currently considering decommissioning. The main reason is the large increase in costs, which in the first quarter of this year increased by almost six percent compared to the end of last year. In addition, companies usually failed to convert them into prices for customers. Carriers expect the current trend to continue.

According to the association, the current increase in costs is unprecedented. The main reasons are the extreme rise in oil prices, high inflation and rising interest rates. Overall, trucking costs rose 5.86 percent in the quarter. The increase in prices was more pronounced in domestic transport, where costs rose by 7.13 percent. According to Česmad, expenditures grew similarly at the end of last year.

According to the association, carriers are failing to pass on rising costs to customer prices. The result is often the economic loss of most carriers. According to the association’s survey, more than half of the companies did not make an economic profit in the first quarter of the year, compared to almost two-thirds in domestic transport. In the two months since the start of the Russian invasion of Ukraine, less than 20 percent of carriers have increased their prices accordingly, and another 30 percent for at least three-quarters of their orders.

In addition, entrepreneurs expect the unfavorable trend to continue. According to a survey by the association, 43 percent of international carriers believe in the second quarter, compared to a third of domestic carriers. The outlook for carriers on the future volume of orders has also deteriorated, with almost 40 percent of companies fearing a slowdown in the production of their partners, and thus a drop in orders.

Therefore, the carriers are looking forward to the planned reduction of the excise tax on diesel by CZK 1.50 per liter, with the proviso that the measure will not be for carriers for only four months, as the government now plans, but permanently. The association also calls on the government to push for reduced margins in fuel production and distribution. It also calls for direct support for carriers.

In recent months, the government has decided to reduce the excise tax from June to the end of September, but parliament has yet to approve it. The government has also previously decided to abolish the road tax on vehicles up to 12 tons and is negotiating with the European Commission to exempt this tax for heavier vehicles. On the contrary, the cabinet is not planning direct support for companies.