How Handico Trucking deals with an ever increasing transport cost price


Since the onset of the Covid-19 pandemic almost two years ago, we at Handico Trucking have also be faced with an increase in the cost price for transport. In this e-mail we explain the main factors behind this and how it affects the price we need to calculate to our customers.

Fuel costs

During the last 12 months the diesel price has shot up by nearly 30%. These high fuel prices are of course another part of the global energy crisis. The world-wide economy bounced back from the initial corona woes, and demand for fossil fuels is still rapidly increasing.  Something to which the energy market has not yet found an answer. As diesel is what keeps our trucks running, this significantly impacts our costs.  The result is that we have had to introduce new fuel percentages to our quotes which are higher than 7%. 

Shortages in trucks and parts

The strains in the global supply and manufacturing chains have also come to the truck parts industry. During lockdown many manufacturers closed, causing massive supply problems. As part of the global container shortage, it takes longer for parts to arrive to Europe, and when they do supply is low and demand is high. Then there is a semiconductor shortage which is affecting many industries, including that of truck builders. Third, there's also a rubber shortage, caused by a disease in rubber trees and the Ever Given blockage earlier in the year. All these factors not only increase the time it takes to repair a truck and take delivery of new trucks, it also leads to higher prices. 

Availability of drivers combined with an increased demand

You may have read in the news that the UK faces a driver shortage since Brexit, however we are also dealing with this problem in the EU.  During the first lockdowns many drivers initially quit their jobs due to a lack of work, but as we all know the container market recovered very fast. This drew back some of these drivers, who also stayed with us during the new lockdowns. For many of them it became increasingly difficult to visit their families due to the existing travel restrictions.  When these eased many of them went back during the summer and stayed there longer than other years. 
This has put a strain on the number of available trucks since the beginning of the summer, and combined with the high demand for transport, has meant that we have to say no to our customers more often than we would like.  We have noticed that we are not the only container trucking company facing this problem, as our haulers have been offered ever increasing rates by other companies. As a response we have made the decision to also up the price we pay to our charters. This unfortunately will also reflect in our transport prices. Not a decision that is taken lightly, but one necessary to ensure we have enough drivers available to deliver your containers on time.

The new EU Mobility package

In February 2022 new measures from the EU's mobility package will take effect.  These include changes to the registration of rest, how and where to take rest, cabotage rules and permits. All of which will increase the costs we and our drivers face. In our next newsletter we will explain these changes and the consequences in more detail. 
Should you have any questions regarding this mail, please feel free to contact us!

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