So far this year, freight transportation costs have risen 78%

As activity levels continue to decline, freight transportation costs recorded a monthly increase of 1.58% in October.

In the first 10 months of 2024, the Cost Index prepared by the Argentine Federation of Freight Motor Transport Business Entities (FADEEAC) marked a accumulated increase of 78.25%while, if what happened in the last 12 months is analyzed, the figure rises to 163.1%, Both percentages are below the inflation of those periods.

The limited increase in the ICT for October – the lowest value of the year – is due to the temporary drop in diesel prices in October (-1.59%), linked to the decline in international prices.

Another point to take into account is that Decree 973/2024 that increases the amounts of fuel taxes for unleaded gasoline, virgin gasoline and diesel, it is dated November 1, so its impact will be seen in the next ICT, corresponding to November.

This increase is, in any case, significantly less than what would have corresponded if the update scheduled for the fourth quarter of 2023, and the first and second quarters of 2024, had been applied.

The study carried out monthly by the Department of Economic Studies and Costs of FADEEAC and audited by the Faculty of Economic Sciences of the University of Buenos Aires (UBA), measures 11 items that directly impact the costs of freight transport companies throughout the country. country, and is a reference to a large extent for the setting or adjustment of rates in the sector.

In October, increases were observed in the Financial Cost (5.24%), after a notable drop in the first semester, and in General Expenses (4.52%), considering variations in wholesale prices for services and rentals.

Tolls had an increase of 4.38%, driven by monthly increases in national corridors and in accesses to the Autonomous City of Buenos Aires (CABA).

Throughout the year, Tolls are the item with the greatest increase in the Indexwith a cumulative increase of 340% and widespread increases in practically every month.

Additionally, Personnel-Driving increased 3.85%, with the entry into force of the second installment of the current CCT 40/89 covering monthly updates in the workforce from September to November 2024. An impact was also recorded in the component items related, Repairs (3.23%).

As noted, in October there was a decrease in Fuel prices (1.59%), both in the retail and wholesale diesel sectors. This occurs after the significant increases recorded in December 2023 (63.3%) and January 2024 (22.6%).

Rolling Stock (-0.02%) and Tires (-0.14%) They showed practically no changes compared to September, as did Patents (annual variations), and Insurance and Lubricants, which also did not register changes.