New border controls may drive up freight prices
Sep 22nd, 2015
The re-introduction of border checks in Germany, Austria and other Schengen group countries is already having a knock-on effect on the road freight industry with several carriers thinking about price rises to mitigate traffic delays.
In some cases there have been major traffic jams, eg from Austria into Germany, with the inevitable late deliveries frustrating hauliers and goods owners who can do nothing about the circumstances. As well as concerns about delays, long queues of trucks waiting at border crossings are reminiscent of the situation at Calais two months ago when strike action in the port resulted in hundreds of stationary trucks which were easy for migrants to board.
We believe all this could cause price rises for a few reasons:
- Delays will mean longer journeys which obviously equals greater cost for hauliers and we are already hearing that they will be charging extra for routes via busy border crossings
- It will be hard for transport planners to anticipate the knock-on effect of a delay and when a vehicle will be free for the next job, so they are likely to ‘price in’ this lack of certainty
- Capacity will become tighter – as we have seen with the Calais situation, hauliers are put off travelling certain routes when problems are so likely and consequentially will avoid the areas with the most disruption, in particular where there is a threat of migrants boarding vehicles.
Let’s hope the border controls are a short-term measure and that price rises don’t happen – we will keep you updated as we watch what happens to prices.