International conflicts such as those in Ukraine or, more recently, Iran are having a significant impact on the food liquids transport sector through rising fuel and raw material prices.
As documented by UETR, logistics and transport companies are on the front line of the energy crisis, bearing the direct and immediate brunt of the additional costs arising from the sudden rise in fuel prices.
Furthermore, we are finding it difficult to pass on these costs to the services we provide with the same speed, either due to the existence of approved framework contracts or because of the disparity among carriers when it comes to applying these increases to rates.
In light of this situation, the UETR is calling for the urgent adoption of support measures at national and European level, such as:
On 16 April, the decree-law came into force that enshrines the obligation to adjust transport prices in line with fuel price fluctuations. Thus, this law ensures that transport prices are updated solely using the formula for passing on the cost of diesel. This requirement has been in place since 2022, but the new decree removes the possibility of contracts including any other method of updating prices.
As has been the case, this adjustment must be made when the change in diesel prices is 5% or more between the date the contract is signed and the time the transport takes place, and must be itemised on the service invoice.
Failure to comply with this new regulation may result in fines for shippers ranging from €401 to €6,000, which may rise to €18,000 in the event of a repeat offence within a year.
The variation in the contracted transport price is calculated by multiplying the change in the diesel price between the week the contract was signed and the week the transport took place (this percentage is provided on the Ministry’s website), by the transport price set out in the contract, by a coefficient(which we will look at below). The result of this calculation must then be divided by 100.
The coefficient by which the transport price and the change in diesel prices must be multiplied depends on the vehicle’s maximum authorised mass (MAM) and the pre-tax price of diesel. In any case, this is indicated on the Ministry’s website.
At Rios Sangiao, as is only to be expected, we adhere to current legislation and apply this formula to all the services we currently operate, ensuring that the prices for our food liquid transport services are as fair as possible for all parties.
We are confident that we will soon see a return to stability in fuel prices and, of course, that the armed conflicts causing these losses for economic areas such as ours will cease as soon as possible.
This has been the work of Sr. Concejo
