Changed cost and rate structure in the road freight market
We are addressing this letter to you as our valued customers to inform you about extraordinary circumstances we are currently facing in the road freight market driven by some European legal changes (e.g. mobility package II and the Polish Labor Act) and the continued lack of capacity in the market.
These factors, which we will outline further below, lead to significant cost increases across for road freight transportation providers. Based on available data, we have estimated cost increases driven by the EU Mobility Package, which leads costs to increase up to double-digits. Further, the Polish Labor Act increases wage costs for Polish drivers up to 30%. Furthermore, in the fourth quarter of 2021, we have seen yet another record of driver capacity shortage in Europe, which intensifies the pressure on haulier rates. Finally, COVID-19 effects and the factor costs growth rates jointly puts us in a position we have not yet experienced in the European road freight market.
We strongly believe that in the longer-term, these effects will lead to improvements for the working conditions for truck drivers and provide legal clarity within the European Union, thereby building a solid foundation to combat the ongoing driver shortages in nearly all European countries.
With reference to the above-mentioned cost-driving effects, we would like to hereby inform you that we will need to apply an extraordinary rate increase of 9% for all export and import shipments in addition to the current transportation rates in the period, effective per 20.03.2022.
Our clear expectation is that these are lasting effects that will accompany us not only this year, but for the foreseeable future, hence we fully anticipate to re-engage in critical conversations about cost developments and appropriate rate adjustments with you and all of our customers not only at this point in time, but throughout the year.
Please be assured that DHL Freight will take all necessary measures to deliver the known reliable quality despite the current tight market situation.
We have also shared information via our web page.
Please contact your local sales representative for further information. We appreciate your understanding during these uncertain times.
We are looking forward to our further cooperation!
DHL Global Forwarding, Freight (Norway) AS
Marius Nordvold Wærpen
Head of Sales & Marketing
Head of Road