NUMBER 2 / ARTICLE 5 / 2020
Cost developments in road transport for 2020/2021
The corona crisis has turned 2020 into an unusual year in economic terms. The economic consequences are directly visible in goods transport as well. We are seeing major differences between individual transport companies: while one may have been badly affected, another may in fact be busier than ever.
Nevertheless, business owners are in need of something to hold onto. It is important to gain an objective insight into the cost developments in road transport. The Panteia Report (formerly NEA) offers that possibility. It provides a solid, reliable and objective basis for negotiations between transporter and client. There were discussions in the past about the accuracy of the figures. Following this joint report, these are now behind us. However, it is evident that business owners will not only discuss the facts in this report amongst themselves this year, but also the consequences of the corona crisis. It is important not to limit oneself to the costs in conversations about service provision, but to have regard to efficiency and sustainability as well.
The report can be requested from Henk Heijnen (hein.heijnen@pon.com) and provides detailed information on the development of costs in both domestic and cross-border road transport. It shows data with regard to the cost developments occurring in 2020 as well as the projections for 2021.
Results in 2020 (excluding fuel cost development)
In 2020, the corona crisis has had a considerable impact on cost development. Employers and employees have collectively decided against implementing a CAO increase for 2020, given the uncertain economic circumstances. This reflected their desire to contribute to the health of companies and maintain employment opportunities.
With wage costs being the largest component of the cost developments calculated in the Panteia Report, this decision comes up strongly in the calculations for the cost development achieved in 2020 as compared to 2019, which does indeed work out lower than the estimate from before the corona crisis. In domestic road transport, the figures vary between -0.7% and +0.5%.
Besides the sharp drop in turnover that many transport companies are having to deal with, both cost-raising and cost-lowering effects are mentioned.
The most commonly mentioned cost-raising effects are:
- Increase in sick leave
- Increase in staffing costs
- Lack of return freight, lower load factor
- Increase in waiting times at the border and increase in waiting times when loading/unloading
- Rising accountancy costs.
Cost-lowering effects that were mentioned are:
- Lower costs through more efficient deployment of vehicles and personnel, resulting from reduced traffic jams
- Reduction in the number of overtime hours for drivers
- Widening of delivery windows and temporary relaxation of driving and resting times
Estimate for 2021 (excluding fuel cost development)
The anticipated cost development for 2021 as compared to 2020 in domestic road transport varies between +1.2% and +1.5%. In cross-border road transport, the anticipated cost development lies between +1.1% and +1.3%.
Anticipated cost developments for 2021
Wage costs for drivers are expected to rise by 1.5% on average. Fuel costs will rise by an average of 5.0%. Depreciation costs are expected to rise by 1.5% and insurance costs by 3.0%. Among other things, the Climate Agreement established an increase in the diesel levy by one cent per litre in 2021.
We understand that Pon companies made specific agreements with the transporters concerned. Please feel free to contact us if you would like more information about this. If you are interested in the Panteia Reports, please send an e-mail to Henk Heijnen at henk.heijnen@pon.com. You will receive the reports entirely free of charge.
