Suppliers’ food transport costs have skyrocketed

The Ministry of Agriculture is studying the situation with the growth of the cost of cargo transportation of food

The rise in freight prices and the lack of free transport are of concern to industry unions of food suppliers.

The Department of Agricultural Markets Regulation of the Ministry of Agriculture has sent requests to the industry unions in order to analyze the change in the cost of transportation per ton from 2019 to 2021.

According to preliminary information, the cost of cargo transportation is growing unevenly depending on the directions:

Domestic traffic + 15-30% compared to last year

International shipping + 24-160% compared to last year.

On average, the cost of food transportation and logistics has risen by 15%, but the shortage of free trucks allows carriers to dictate prices.

A PepsiCo spokesperson notes that if additional carriers need to be attracted, the proposals exceed the basic cost of transportation by 50-80%.

This is due to a decrease in offers from transport companies.

The reasons for the growth in the cost of cargo transportation, in principle, are clear: the price includes all the requirements that are imposed on transport companies — environmental tax, transit through Moscow, an increase in the cost of vehicles, fuel, spare parts, wheels, taxes, etc.

And the shortage of vehicles, associated, among other things, with the withdrawal of some companies from the market, allows carriers to dictate their terms.

The Ministry of Agriculture, together with the Ministry of Industry and Trade and the Ministry of Transport, is considering proposals on options for solving the problem.

Possible routes include subsidizing food transportation, easing the burden on road carriers and taking measures to lower fuel prices.