The transport costs accumulate a rise of 20% in it first quarter of 2023according to Transportation Cost Index prepared by the Argentine Federation of Business Entities of Cargo Transportation (fadeac).
The index returned a 3.34% increase in Marchwhich reflects a slowdown in the last monthafter the increases registered in January (5.5%) and February (10%), indicated the Federation in a statement.
The costs had a year-on-year increase of 121.6%behind the record 121% during 2022the highest figure in the last 20 years.
In this context, Fadeeac pointed out that “the sustained increase in operating costs continues to be a major concern for the sector”.
“to the complex context of continuing high retail and wholesale inflation Argentina, two factors have been added in recent months that only aggravate the outlook: the severity of the drought impact and lower expected growth of the world economy,” the entity added.
The factors driving the increase
He Cost Index measure 11 items that directly impact the freight forwarding company costs throughout the country, and is a reference to a large extent for setting or adjusting the rates of the sector.
Although with more moderate increases than in January and February, the data for March show that most items suffered increases.
First of all, there is a new increase in the 4.3% in it fuel (main input in the cost structure of the sector), which covers both the wholesale and retail segment of diesel, within the framework of the price agreements established between the national State and the oil companies.
Besides, another seven items closed on the rise: team and rolling material (7.88%); financial cost (7.27%); repairs (6.43%); lubricants (5.75%); general expenses (4.44%); insurance (1.65%); and tires (1.35%).
While personnel, patents and fees and tolls had no changes compared to February. When analyzing the behavior of the different items between January and March 2023, it was observed that patents (72.6%), rolling material (35.3%), repairs (31.9%), general expenses (30.6%) and staff (25.4%) led the increases.
Throughout 2022, the largest increase of the operating costs occurred in rolling stock (154%), insurance (142%), repairs (132%), tires (124%) and fuels (121%), concluded Fadeeac.
Source: Ambito
