Diesel Price Development

Nothing affects the cost situation of the transport industry more immediately and directly than fuel prices. The situation in international oil markets is strongly influenced by expectations and fears, which then lead to short-term volatility that is not always rationally comprehensible. This means that for long-term contracts, the price of a service is fixed for an extended period based on a previously determined cost situation and a calculation built upon it. The ‘one-time’ price negotiation, considered an advantage in this context, carries risks in times of strong cost changes that can disadvantage both contracting parties. Cost reductions in a time-fixed contractual relationship disadvantage the client, while a strong cost increase affects the transport logistics company.

As a freight forwarder, we cannot influence the significant increase in diesel fuel prices since 2016, but nevertheless, we are doing everything we can to contribute to energy reduction by, for example:

– Constantly adapting our fleet and focusing on better engine technologies
– Conducting driver training on the topic of ‘more economical driving’
– Using and optimizing our internal traffic processes such as forklifts and order picking more efficiently

These and other measures to increase efficiency reduce energy consumption. However, compensating for this price development is not possible in this way. For this reason, we have no choice but to also charge a variable diesel floater, which has been common in the industry for some time, in addition to the agreed freight rates starting from 15.10.2018. To calculate the diesel floater, we use the index of the Federal Statistical Office for diesel prices when supplied to large consumers, which is published monthly by the Association of the German Petroleum Industry. At the end of each month, the diesel floater is updated based on the average value of the previous month.

The diesel surcharge is only added to the freight rates; there is no surcharge on other services. We are convinced that on this basis we have found a fair and, above all, transparent solution for both sides. Thank you very much for your understanding. If you have any questions, we are always at your disposal.