With the historically low level of oil prices, transport companies are also seeing one of their biggest cost items decrease significantly, you would expect. But the low oil price does not necessarily mean higher returns, the Financieele Dagblad writes.
According to Bart Banning, sector banker Transport and Logistics at ABN Amro, there will be little difference to be seen in the long term. "You would think that the impact of the oil price would soon be huge, because a large part of the costs of all companies in logistics and transport consists of fuel costs," Banning told the FD. "But the market and pricing in road transport quickly adjust to the development of the oil price."
Excise duty and VAT
In addition, fuel prices in the Netherlands will not fluctuate as much as oil prices. This is because fuel prices here consist of about two-thirds excise duty and taxes, so oil prices do not affect fuel prices as much. When oil prices halved, diesel prices fell by only 10 per cent.
Passing on to customer
Transport companies benefit less from low fuel costs because the contract with the customer often stipulates that the development of the oil price is passed on in the transport prices for the customer. The customer is thus more profitable, but the transport company notices little of it. According to chairman Klaas de Waardt of Vern, an advocate for smaller transport companies, small hauliers are the brunt of this. "Many hauliers, including those with fuel clauses, did not raise their prices when fuel prices went up because of competition from Eastern Europe. And now that fuel prices have come down, we truckers suddenly do have to lower our prices by 3 to 4 per cent."
Editorial LogistiekProfs
