Challenges and opportunities for the road transport sector in times of change.
The picture of price increases that we have been witnessing for several months now is a situation that is putting the entire haulage and logistics sector in difficulty.
The effects induced first by the pandemic, and then by macroeconomic and geopolitical dynamics, are having a negative impact on a sector that represents a fundamental part of the country’s economic and social fabric.
Decree-Law as emergency manoeuvre
The new decree law on high energy prices, which came into force on 1 July, extended the initiatives taken to contain electricity and natural gas costs until September, with tax credits for energy-intensive or gas-intensive companies and for the purchase of the AdBlue component for transport companies.
However, all this is only useful in the short term: for long-term recovery, structural initiatives and a close dialogue with institutions are needed for a paradigm shift to reorganise and reconvert the industry.
Between fears and price increases
Variable costs, inflation and market fluctuations do not allow costs to be estimated correctly and made sustainable; this impacts especially on short supply chain companies, which are unable to spread increases over time. And while this represents an increase in business closures, it also sees an increase in more stable and transparent company structures.
The increase in fuel price – which now costs more than 2 euros, compared to an average of 1.48 euros last year, and which accounts for 30% of operating costs – but also the cost of tyres (+57%), AdBlue additive (+400%) and raw materials in general, are problems that now add up to a lack of past investment in upgrading the sector. Not to mention the lack of drivers, the condition of the road network and the traffic squeeze for the second half of 2022, estimated by the Confcommercio Studies Office’s Conjunctural Observatory of Transport (the data can be found here ).
All that is needed for recovery
What can be done in such a scenario?
Right now it is more urgent than ever to involve institutions, companies and social partners to restore the sector to its pivotal role in the country’s economy.
First and foremost, there must be a clear and definitive reduction in fuel taxes, which are among the highest in Europe. A reduction in labour costs and greater transparency and clarity in contracts are essential, as well as a vision that considers a different approach to the use of resources with recourse to the circular economy, the encouragement of local markets, and the valorisation of internal resources so as not to be 100% dependent on external actors.
It is a matter of reviewing supply chain management processes and renewing dynamics that, with the current situation, are no longer sustainable and capable of producing effectiveness and efficiency.
500 million by the EU for the road transport
UNATRAS, the Union of the most representative road haulage associations, has announced that “The Directorate General of the European Commission has given a favourable opinion to Italy’s request to grant a contribution equal to 28% of the expenditure incurred in the first trimester of 2022 for diesel expenses, as provided for in Article 3 of the Aid Decree”.
A small glimmer of hope that also sees the European Union committed to helping the transport sector recover, and which adds to the actions taken by the national government. They will be tough months, but seizing the critical aspects of a crisis and turning them into opportunities is what every company in our sector is capable of doing.
Is it easy? Certainly not. But it is certainly possible if we all commit to rethinking production cycles and improving workflows, minimising waste and making our voices heard at the dialogue tables with national and international delegations.
We at GGN are also committed to doing everything in our power to help an industry we deeply love and have lived in for 40 years.
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