Influence of inflation on road transportation costs

Influence of inflation on road transportation costs

Dear valued customers and partners,

In the last two years, transportation firms in the EU have faced unprecedented cost inflation. All elements contributing to pricing have been impacted by this rise in expenses.

Initially, there is a rise in labor expenses for drivers, with a 16.4% increase for international drivers from 2021 to 2023, followed by a 10.4% increase from 2023 to 2024. Moreover, a notable surge is observed in the company’s operational and maintenance costs (wages, administration, technology, energy resources, etc.) by 15.3%, vehicle renewal, maintenance, and repair costs by 13.4%, and toll fees by an average of 6.8% for the EU.

In 2023, the average inflation rate for transporting goods in the EU, excluding fuel costs, is 6.3%. Statistics for 2024 indicate a further increase of 6.8%. (source: National Road Transport Committee: Economic Observatory of Road Transport: TRM Costs).

In Bulgaria, the consumer price index rose by 120.8% from January 2022 to June 2024, as reported by the NSI, indicating an inflation rate of 20.8% for the period.

In addition to the commonly known and measured factors listed above, enterprises also face an increased cost burden due to:

  • Fluctuations in commitments, unplanned changes in enterprise activities, and the resulting varying workloads for transport companies can result in inefficient resource utilization, both human and material.
  • The heightened expenses linked to locating, retaining, and training employees, which are prevalent with enduring staff shortages at all levels.

In this dynamic situation, with your well-being and business in mind, we must raise the base prices of all contracted rates to ensure the provision of safe, consistent, professional, and dependable services. Having factored in the fuel surcharge, and considering the absence of Bulgarian studies on reflecting inflation in transport components, we are aligning with average European values concerning transport and rising operational expenses, exclusive of fuel.

Aggregate inflation necessitates an elevation in all rates.

With consideration for your business and the understanding that transportation costs are sensitive, even amidst rising inflation, we have refrained from adjusting prices based on inflation. Instead, we have focused solely on the highly volatile element – fuel.

As of September 1, 2024, all agreed-upon rates for global and local transportation will undergo a 13.1% increase to counterbalance rising expenses and uphold our service standards.

With care for your business, we continue to search and offer solutions that meet your needs and expectations.
We remain available for questions, comments and consultations.

You can rely on our assistance and compassion, as always.

Yours faithfully, Act Logistics AD Team Tel: 02/807 45 45 Email: Info@act-logistics.com/Sofia, 08/05/2024

 

Fuel Taxes

Fuel Taxes

Dear partners,

We are in an unprecedented situation.
The conflict in Ukraine is a catastrophe for the world and has a more significant impact on inflation:

  • The war between Ukraine and Russia is already affecting Europe’s economy.
  • The time is never good for war, but its outbreak has boosted fuel prices. Petrol reaches the price of $ 105 a barrel, and the cost of natural gas also rose significantly.
  • The energy situation is still under control, but the continuation of the war will boost inflation.
  • Meanwhile, business confidence remains strong. The removal of Covid-19 restrictions will be strong support for markets.
  • In the short term, the uncertainty is high. Where will the conflict evolve? What impact will it continue to have on the prices of energy? Where will inflation go? These are questions that we cannot answer today.

 

As a consequence of this and in order not to change the tariffs for domestic and international transport constantly, Act Logistics has developed a price list for indexation based on changes in fuel prices and tolls through the countries along the route of your shipments and in Bulgaria.

Act Logistics reserves the right to review the prices and to offer spot prices in the event of a sharp change in the market situation – lack of trucks, drivers, or fuel on the market

Price index if fuel prices increase:

  1. We will use the price of fuels from January 2022 as a basis on which we will add a fuel tax.
  2. The fuel charge for each shipment is determined based on the average price of diesel fuel when the order of transport is made.
  3. To determine the price of fuels, the source of information is: Prices of fuels in Bulgaria today: Fuelo.net – please follow the link: Цени на горивата в България днес :: Fuelo.net (https://m.fuelo.net/m/prices)

As a referent amount, we use the average price of DIESEL (Дизел) in Bulgaria on the relevant date.

Diesel fuel prices Fuel tax
From (BGN) Up to (BGN)
2.35 BGN 2.45 BGN 0.00%
2.46 BGN 2.58 BGN 4.23%
2.59 BGN 2.71 BGN 8.45%
2.72 BGN 2.85 BGN 12.68%
2.86 BGN 2.99 BGN 16.90%
3.00 BGN 3.14 BGN 21.13%
3.15 BGN 3.30 BGN 25.35%
3.31 BGN 3.47 BGN 29.58%
3.48 BGN 3.64 BGN 33.80%
3.65 BGN 3.82 BGN 38.03%
3.83 BGN 4.02 BGN 42.25%
4.03 BGN 4.22 BGN 46.48%
4.23 BGN 4.43 BGN 50.70%
4.44 BGN 4.65 BGN 54.93%
4.66 BGN 4.89 BGN 59.15%

 

Price index if toll prices increase:

  1. If there is an increase or introduction of a new fee, you will receive a letter describing the scope and specific values ​​that reflect the change.
  2. The toll tax is applied from its introduction in the transit country.
  3. The official information provided by the transport administration in the respective country is used to determine the price of toll taxes.
Volume Tax
Up to 1000 kg., 4 м3, 0.8 l. m. 21% of the increase in taxes for a truck with a payload of 22,000 kg.21 % от увеличението на таксите за преминаване за камион в полезно тегло 22 000 кг.
From 1000 kg., 4 m3, 0.8 l. m. Up to 3000 kg., 12 m3, 2.4 l. m. 29 % of the increase in taxes for a truck with a payload of 22,000 kg.
From 3000 kg., 12 m3, 2.4 l. m., up to 5000 кг., 20 m3, 4 л. м. 42 % of the increase in taxes for a truck with a payload of 22,000 kg.
From 5000 kg., 20 m3, 4л.м., до 10 000 кг., 40 m3, 8 л. м. 63 % of the increase in taxes for a truck with a payload of 22,000 kg.
From 10 000 kg., 40 m3, 8 л. м., 15 000 кг., 60 m3, 12 л. м. 71 % of the increase in taxes for a truck with a payload of 22,000 kg.
Over 15 000 кг., 60 m3, 12 л. м. 100% of the increase in taxes for a truck with a payload of 22,000 kg.
1         m3 = 250 kg., 1 LM = 1250 kg.

 

Fuel tax comes into force on March 1, 2022.
There are no changes in toll taxes now. That is why we will not apply additional taxes.
We take care of you and your business. We will continue to offer you individual and integrated solutions that meet your needs and expectations.
We remain available for questions, comments, and consultations.
You can count on our support and empathy, as always.

With respect,
Act Logistics team
Tel: 02/807 45 45
E-mail: Info@act-logistics.com/
Sofia, 01.03.2022 г.
This letter is published in the section ACTUAL on our web site- www.act-logistics.com/.

New toll taxes in Bulgaria

New toll taxes in Bulgaria

Dear partners,

According to the decision of the Council of Ministers № 142 of 24.06.2022, there will be a change in the amount of toll taxes in Bulgaria (Official Journal no. 49/30.06.2022). As a result we need to make changes in the priceс of the services we provide from 01.07.2022 and from 01.01.2023 as follows:

Transport Services 01.07.2022 г. 01. 01. 2023 г.
Domestic transport (in Bulgaria) + 15% on the transport price + 15% on the transport price
From Central and Western European countries, including Germany and France to Sofia + 2% on the transport price + 2% on the transport price
From Balkan countries, including Turkey, Greece and Romania to Sofia + 8% on the transport price + 8% on the transport price

Important:

  • The toll tax is applied from its introduction in the transit country..
  • The official information provided by the transport administration in the respective country is used to determine the price of toll taxes.
  • The provided percentage changes are valid from/ to Sofia. When transporting to/ from other cities in the country, there may be changes of the price.

We take care of you and your business. We will continue to offer you individual and integrated solutions that meet your needs and expectations.
We remain available for questions, comments, and consultations.
You can count on our support and empathy, as always.

With respect,
Act Logistics team
Tel: 02/807 45 45
E-mail: Info@act-logistics.com/
Sofia, 29.06.2022 г.

This letter is published in the section ACTUAL on our web site- www.act-logistics.com/.

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