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