TIMOCOM and DSLV Discuss the Sense and Nonsense of Toll Fees

In a lively exchange between the DSLV Federal Association of Freight Forwarding and Logistics, TIMOCOM, and a panel of shipper experts at the Logistics Summit in Düsseldorf, warnings were once again issued regarding the serious consequences of the toll increase. The lack of steering effect, enormous price increases, and existential threats – the burdensome impacts of the toll increase on December 1, 2023, remain a heavily disputed topic.

(Erkrath/Berlin/Düsseldorf) In his presentation on the toll law changes, Raoul Wintjes, Head of International Road Freight Transport at the DSLV Federal Association of Freight Forwarding and Logistics, presented a nuanced opinion on the toll increase to those present. He made it clear that the logistics sector does not want to hinder sustainable development towards CO2-emission-free transport. However, the CO2 surcharge comes too early because the plans simply do not fit the current economic situation and the available technical alternatives. What is certain, however, is that shippers and transport companies currently face the significant challenge of finding solutions on how to deal with the increased toll fees in order to remain internationally competitive. This creates unrest and concern in the industry: the uncertainty with which all parties approach this issue was also reflected in the mood of the attending shippers. The toll issue will become a contentious discussion point in the upcoming price negotiations between clients and contractors. Ultimately, the question arises as to who will bear the higher toll fees. The shippers, freight forwarders – both? Or just the consumers? The DSLV is certain in this matter: it is the consumers who have benefited from declining transport prices for years and who have the impression that transport is included for free with the product.

“With the introduction of a CO2 toll, as it will occur on December 1, 2023, the toll fees for trucks will nearly double. These measures will primarily affect the industry, trade, and consumers beyond the transport sector,” warns Gunnar Gburek, Head of Business Affairs at TIMOCOM.

The Planned Steering Effect Proves to Be Highly Questionable

The planned toll increase is repeatedly touted as an effective steering instrument towards e-mobility and greater climate protection. “The importance of a long-term steering effect is beyond question. However, our criticism is directed at the fact that alternative drives, the charging infrastructure, and not least the widespread availability of green electricity are currently not available in sufficient quantities,” explains Raoul Wintjes. Surprisingly, it became clear that even the federal government does not seem to believe in the actual impact of this measure from the outset. The corresponding vehicles will not be offered on the market in relevant numbers until the end of 2023, and the charging infrastructure will not be widely available in the coming years. Furthermore, the lack of success of a steering effect is already evident today in the fact that the planned toll revenues will increase in the years leading up to 2027. Although alternative drives are actually exempt from tolls until 2025 and subsequently classified as significantly reduced tolls, which should lead to decreasing revenues overall. Ultimately, the higher toll fees merely represent a hidden tax increase. This was also repeatedly highlighted in the discussions between Gunnar Gburek (TIMOCOM), Raoul Wintjes (DSLV), and the panel of shipper experts.

Empty Kilometers Will Weigh Even Heavier in the Future

Empty kilometers have always been unprofitable. However, with the rising toll fees, empty trips will take on an even greater significance in the long term. Certainly, this additional cost effect is not new, but it contributes to exacerbating the tense situation in the industry. Raoul Wintjes also sees this effect: “Empty trips due to asymmetrical goods flows gain even greater importance due to the toll increase and push many transport service providers to their rationalization limits.”

Opinions among shippers regarding empty trips are divided. Some shippers are already emphatically pointing out that the higher toll fees are increasingly bringing the efficient return of vehicles and the minimization of empty transports into focus during negotiations with freight forwarders. Others, however, take a more relaxed stance on this issue and point out that there are already effective solutions for taking on empty trips. Furthermore, another group of shippers makes it clear that they are under massive cost pressure and will not be able to pass on the full extent of the higher costs to consumers. The position of this group of shippers is unequivocal: they are not willing to bear 100% of the higher toll fees. Increased transport efficiency of freight forwarders, enhanced digitalization, and further efforts to avoid empty trips could provide relief and prevent costs from rising further.

Inflation Drivers and Drastic Price Increases for Consumers

The reality presents a bleak picture for all parties involved! It is foreseeable that with the increase in toll fees, transport costs will rise, which will inevitably lead to a noticeable increase in consumer prices. And this at a time when consumers are already burdened by strong inflation. A concrete example of the burdensome impacts comes, among others, from the beverage industry. In this sector, transports are particularly characterized by bulky and/or heavy goods with a comparatively low value. Here, higher logistics costs quickly become significant and inevitably affect the prices for end consumers. Because even today, the industry operates with low profit margins. It is predicted that with the new CO2 toll, the costs for a crate of water will increase by up to 50 cents depending on the manufacturer. With simultaneous increases in prices for other consumer goods, this means an enormous financial burden for consumers that all parties will have to bear.

Behind Every Trip Stands a Transport That Keeps the Economy Alive

“It is time to accept reality – truck transports are the backbone of our economy and society. To make it clear once again: even today, no truck travels without a justified reason. Behind every trip stands a transport that keeps our economy alive, secures our prosperity, and supplies society with all necessary goods,” concludes Gunnar Gburek.

Graphic: © TIMOCOM