The impact of rising fuel prices increases freight rates by 29%

NT&C Logística defines the situation as critical for the carrier; automation and process management platforms can help save money

15.03.2022 | 14:36 (UTC -3)
Gestran Consulting

Petrobras announced an increase of almost 25% in diesel. For the transporter, this is yet another change to a critical situation. The effect is the result of the war between Russia and Ukraine and increases the price of a barrel enormously, with a special impact on diesel. The expectation of more stable prices post-Covid-19 pandemic did not materialize.

A few days ago, the National Transport Studies Council of NT&C Logística (Conet) expressed itself in a note and stated the need to restore freight prices due to increases in transport inputs. “Today’s increase in the price of diesel, of around 24,9%, entails the need for an additional adjustment in freight of at least 8,75%, a factor that must be applied in an emergency to freight, accumulating a total adjustment 28,96% in fractional load and 28,82% in full load. NT&C Logística reiterates the importance of the transporter negotiating inclusion in old contracts and placing a trigger for diesel increases in new contracts”, says part of the text. Diesel is one of the biggest input costs for transport activities.

Fatally, as experts have already anticipated, the consumer will be the one who will pay this bill, as transport companies will have to pass on the effect of the increase to industry and commerce. Therefore, tools that can automate and speed up the processes of cargo transportation companies that have fleets are an alternative to this unstoppable movement in the fuel market.

In Paraná, for example, Gestran, a startup specialized in helping companies and professionals in building practical solutions to real problems in logistics operations, offers some solutions that meet these new challenges exactly. One of the tools already available is the Fleet Management Platform, developed based on the processes and needs of cargo carriers and fleet managers to overcome business challenges. “Any solution that generates savings for our customers in the short, medium and long term adds value to our product and satisfaction for those who use it”, says Paulo Raymundi, CEO of the company.

Gestran also offers solutions for controlling spending and consumption of fuel, tires, maintenance and expenses in a simplified and automated way, using a dashboard that is easy for the customer to use. Another feature is the delivery management application. Integrated with ERP Gestran and the Cargo Portal, with access by customers, the carrier can monitor the progress of deliveries in real time. “The pass-through of the increase in diesel prices to freight seems truly inevitable, but savings in fleet management are possible”, guarantees Raymundi.

Fleet

According to data from the National Land Transport Agency (ANTT), Brazil has around 1 million transport companies, divided into autonomous cargo transporters, road transport companies and transport cooperatives, with a fleet that exceeds 2 million registered vehicles.

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