Freight transportation costs increased 1.7% in December, closing 2024 with a cumulative increase of 85%, as revealed by a recent report from the product logistics sector.
In this way, the annual progress reflected by the Transportation Cost Index (ICT) marked a decrease and a strong contrast compared to the 2023 record, which accumulated an increase of 248%, being “the largest increase in three decades.”
The report from the Argentine Federation of Freight Motor Transport Business Entities (FADEEAC) reviewed the behavior of costs over the course of the year that recently ended.
From the entity that represents cargo transportation, they specified that “during 2024, the largest variations occurred in the first half of the year, while the last four months showed more moderate increases, around 2%.”
Throughout the yearTolls led the increases with a cumulative increase of 380%, followed by Patents (238%), Personal (190%) and Fuels (75%). Other items, such as Tires and Insurance, stood out for their stability.
In this regard, they pointed out that “these include Lubricants, which showed no changes in the last months of the year; Rolling Stock, whose variations were marginal due to the market slowdown; Insurance, with unchanged values; and Tires, which maintained practically frozen prices. “.
In relation to the monthly record, the report explained that the degree of the increase in December ended up indicating that a slowdown in the pace of increases was being consolidated during the fourth quarter of the year.
Furthermore, he maintained that “This moderation is linked to the recessionary context, a lower inflationary environment and the deferral of specific taxes on fuel, which attenuated the increases in diesel, a key input for the sector.
At the same time, he specified that “among the factors that drove costs in December, a 2.35% increase in fuel stands out, moderated by tax adjustments, and a 2.2% increase in Personnel (Driving) after the update of the collective agreement 40/89”.
Likewise, he specified that “increases were also recorded in Tolls (4.14%), Repairs (2.11%) and General Expenses (2.28%).” While in contrast, he revealed that ““The Financial Cost registered a decrease of 2.8% in December, linked to the reduction in interest rates.”
Freight transport: the analysis of 2024
In the general analysis, FADEEAC expressed that “in a context marked by economic recession, freight transportation operated in a disparate scenario, with sectors such as agriculture, energy and mining growing, facing a contraction in industry, consumption and public construction”.
Looking ahead to the new year, they were more optimistic, stating that “Despite these conditions, the sector looks towards 2025 with expectations of reactivation thanks to greater credit expansion.”
On the other hand, they detailed that “since its creation in 2001, the FADEEAC Index reflects an accumulated increase in costs of 347,652.73%, consolidating itself as a key reference for the adjustment of rates in the sector.”
Source: Ambito
