Lithuanian carriers predict a rise in product prices and warn of a wave of bankruptcies

New employee and tractor registrations are declining

July 8 was the day when, after a long debate in plenary, the European Parliament finally adopted the Mobility Package.

Admittedly, as Delfi commented Tomas Jurgelevičius, Secretary General of the International Transport and Logistics Alliance (TTLA) and head of UAB Hegelmann Transport, not all the requirements of the adopted package will take effect immediately, and not all weapons have been assembled .

The head of the Alliance explained that, despite the adoption of the package, Lithuania, together with other countries, has so far managed to get the European Commission (EC) to assess whether the new package and some of its points, in particular the shipment truck compulsory to country of establishment Lithuanian carriers. According to him, the results of the EC evaluation should be available by the end of this year.

When asked which elements of the Mobility Package are of particular interest, T. Jurgelevičius stated that this is a mandatory return of the tug to the country of establishment every 8 weeks and restrictions on cabotage, a cooling period of 4 weeks.

“These requirements have nothing to do with better working conditions for drivers, the European Green Course and the environmental and climate policy of the European Union (EU) in general, but are directly aimed at restricting transport services to Export-oriented EU Member States.

In terms of the volume of transport services exports, Lithuania is the undisputed leader in the overall structure of transport services in the EU, with 92 percent. “The total export of services is made up of international transport operations, so we will be the country that will suffer the most from these requirements throughout the EU,” he said.

According to the head of the alliance, companies have been interested in starting business from Lithuania since last year, and the decision made by the Government contributed to this by almost 30%. raise the minimum wage for drivers.

However, as he assured, today it is difficult to say how many companies have already started their business abroad, but you can see a certain image analyzing the registration statistics of new trucks and the data of the prohibited drivers in Sodra.

According to Sodra, in May of this year, the number of truck and lorry drivers decreased by 5.6 thousand during the year. drivers, 79.5 thousand. In May 2019, 73.9 thousand. In May of this year.

According to data from the Road Vehicle Register, in the first half of this year, compared to the same period in 2019, the number of new tractors registered for the first time according to the N3 class decreased almost 3 times, from 4,857 to 1,724, “he said. .

According to his calculations, a tractor a year contributes around 8 thousand to the state budget in the form of various taxes. Eur tax.

“The Lithuanian road freight sector has entered a very difficult period,” summarized T. Jurgelevičius.

It is a wave of bankruptcies

Tomas Stonys, CEO of UAB Vlantana, assured that the company he manages, like many national operators, sees discrimination in the Mobility Package due to the geographical location of Lithuania, which will deprive Lithuanian operators of the EU market and fragmentation. of European operators in central and peripheral countries. privileges for the “ancient” and central states of the continent.

“Regarding our business model, there will be no benefit in the mandatory return of the truck to the country of registration every 8 weeks.

Overall, the effect on the market will be negative as it will increase empty vehicle flows, fuel consumption, pollution, and increase the number of cars on the road.

For all these reasons, there will undoubtedly be increasing competition to carry cargo to the Baltic countries, resulting in some smaller carriers losing their profits, which will likely lead to a wave of bankruptcies, “he said. to build.

“After the adoption of the mobility package, the company had to rethink some aspects of its operations to meet the requirements.

However, we do not plan to re-register cars in other countries: all companies operating abroad will carry out their activities as usual, ”said T. Stonys, adding that some companies have moved from Lithuania for some time and They have established branches in Poland and Germany.

Shipping rates will change, buyers can reply

Rimas Raščius, the head of cargo transport, forwarding, logistics and cargo transport “Vilktukas”, is also convinced that his company may have to work for the cost if the Mobility Package is not adjusted.

As stated, the entrepreneur-run company is somewhat specific. It is dedicated to the transport of cargo specifically from Lithuania to Europe and vice versa, but does not transport cargo between other European countries.

“Therefore, forcing trucks to drive to Lithuania will not cause us any problems, but we will be partially affected by hotel accommodation, when, for example, there are not so many, and we will suffer more in terms of transport prices.”

Thousands of other companies returning to our country will be forced to search for cargo to and from Lithuania to reduce return costs as much as possible, which means that there will be no increase in cargo on the market and prices will drop sharply.

Companies like ours, which are the specific characteristics of their activities, may suffer even more than others, because we work with such loads, and if our price is no longer satisfied, we may be forced to drive because of the cost, “said R. Raščius.

He also explained that the company will also be affected by the weekly rest of the driver, which will not be possible in the vehicle cabin.

“It doesn’t make sense, because the insurance companies don’t insure us the load if the driver is not in the load and there is no possibility of leaving the cars in the hotels.” This is complete nonsense that no one in Brussels sees, “he said.

And Valdas Buivydis, director of logistics company Hoptrans, said about the transportation fees and said they would increase, warning that buyers could feel the changes on their skin.

“The additional requirements related to the application of the mobility package will inevitably increase the prices of transport services due to the exponential increase in operating costs, which will also have a negative impact on the prices of products and goods on the market.

Consumers will definitely feel this in the long run. Unfortunately, negatively, “he commented, adding that the situation in the market is currently tense.

“We unequivocally believe that the application of the mobility package will only worsen the situation for carriers, and certainly not all market participants will have the ability to adapt to additional requirements,” he suggested possible future bankruptcies.