Freight transportation costs have further increased

In June, the transportation of goods by road resulted in a cost increase of 3.82%, reported in the last hours FADEEAC.

The increase is over 15% in the first half of 2018 and 34.3% in July 2006.

If an increase of 8% in wages and 6% in fuel is forecast, the costs will increase by 21% between January and July

The rise in fuel prices and the devaluation of the peso are the main causes of rising costs
Fuel rose 16.7% in the first half and 33 , 7% since the deregulation of the hydrocarbon market in October. 2017.

If we take into account that costs have increased in recent months, we can be badured that an average of 3 points of inflation of "freight" was recorded in 2018

Only in June, the costs they face land transport companies increased by almost 4%, which means that the rise in the first half of the year was dangerous by 15.8% : the stability and competitiveness of the sector are linked to a thread.

This is the result of the cost index prepared monthly by the Argentine Federation of Chartered Autotransport Enterprises. (FADEEAC). The increase is 34.3% since July 2017.

Freight transportation costs increased by 3.82% in June, mainly due to a sharp increase in fuel after the virtual freeze of May, and almost at the same time, because of the sharp changes in items related to the exchange rate adjustment. If an 8% increase in wages is forecast for July, given the signed collective agreement and the new gasoline increase estimated at around 6% by the major oil companies on July 1st, the The index would climb to 21%% between January and July 2018.

With an increase of 4.4% this month, diesel increased by 16.7% in the first half and 33.7 % since the deregulation of the hydrocarbon market in October 2017. With the July increase, the projection for the first seven months of the year could reach or even exceed 24%. At the same time, as a result of the peso devaluation, 12.7% purchased rolling stock and 9.2% more repaired equipment. The strong increase in Lubricants (20.9%), tires (9.8%) and insurance (5.8%) was also highlighted

. The financial cost climbed by 3.48%, while the rest of the 11 items badyzed did not change. by the Department of Tax Studies and Costs prepared by the FADEEAC Index

Freight Inflation

If we take into account that costs are causing an upward trend in recent months, can ensure that an average of 3 points of "freight" inflation has been recorded during the year 2018, in a context where strong cost adjustments are expected in the year. Set of transport and logistics chain for the second part of the year. This situation coexists with a marked deceleration in activity.

This upward momentum is largely badociated with the deregulation of the hydrocarbon market: since its inception on October 1, the transport cost index has increased by 26%. With the projections of July, it would reach a notorious increase of 31% in 10 months whereas, this diesel would reach a worrying 42%. That is to say, an average increase of 4% per month of the regime "deregulation-alignment of domestic fuel prices with international prices".

Therefore, "freight" inflation for 2018 is projected well above recorded in 2017 (24%), with the exacerbation of the freeze of activity, that FADEEAC understands that & # 39; It must be declared urgent because it must, in addition, face the constant tax burden which reaches 40% of the final freight rate.