The reform of the truck toll came into force on December 1st; the amount of the toll is linked to CO2 emissions. The change stems from the need to implement the amended Eurovignette Directive, which came into force in March 2022 and mandates that road toll pricing be amended to take account of the CO2 that different heavy commercial vehicles emit.
However, the measure means an additional cost of 200 euros per ton of CO2 in Germany – double the figure quoted in the EU’s own guidelines.
The German Chamber of Industry and Commerce (DIHK) estimates that the truck toll will burden the economy to the extent of 7.6 billion euros annually.
The increase is particularly untimely because the economy is currently in a slump. Some forecasts estimate that gross GDP in Germany is set to decline by 0.6%.
The downturn is mainly due to the sharp increase in energy prices in 2022. Added to this is the fact that from 2024, the CO2 price for fuels in emissions trading will rise from 30 to 40 euros per ton. This puts companies under a double burden.
“In general cargo we are dealing with an average toll increase of 78 percent; in the partial and full load segment this is even higher and has lead to a significant increase in freight rates. Of course, no freight forwarder can bear this. The shipping companies are currently in a very difficult profit situation, with profit margins between 2 and 5 percent. This means that the costs must be passed on to customers. And the customers will in turn pass it on to the consumer. Depending on how high the transport costs are in terms of weight, this will be more or less noticeable for specific goods,” says Lukas Petrasch, founder of Cargoboard.
The Federal Association of Logistics & Transport also warns of follow-up costs:
“All products on the German market will become more expensive for everyone due to the toll increase. Shortly after the toll increase, support programs such as Deminimis for 2024 were canceled – another disadvantage that threatened the existence of many German transport companies and drivers,” says Daniel Be Constant, board member atFederal Association of Logistics & Transport.
Above all, the transport industry criticises the fact that the toll was introduced without taking the market situation into account. Petrasch is of the opinion that the partial toll rates could have been differentiated and introduced on a staggered basis.
“My recommendation would have been to introduce the toll increase gradually, linked to the current market situation. The advancement of electromobility and the improvement of the rail infrastructure should have happened over a longer period of time in step with a toll increase,” he emphasises.
Small businesses’ existence is threatened
For small and medium-sized companies, the cost rises resulting from the toll increase can threaten their existence because they are unable to pass on the costs. There is also a dependency problem on shippers.
“I think the probability of insolvency is particularly high for small and medium-sized freight forwarders, as they are very dependent in their contractual relationships with large shippers. The large shippers can often dictate prices as the small freight forwarders can be switched very easily,” explains Petrasch.
The Federal Association of Logistics & Transport even expects the first bankruptcies in the industry as early as the first quarter of 2024.
“I assume that many small and medium-sized transport companies will be at risk of insolvency in the first quarter of 2024. The large companies will pass on the toll costs to their customers. Where this is not possible, you will have to save on the prices charged to the freight carrier. Small companies that are dependent on large logistics providers or the spot market cannot simply pass on the toll and will sooner or later be faced with the decision of whether they can continue or not,” emphasises Konsistent.
Price pressure could worsen further
In addition, as a result of the toll increase, the competitive pressure from Eastern European companies will continue to increase. In Germany, around 43.3 percent of road freight transport is already accounted for by foreign trucks.
“Eastern European transport companies already have a completely different cost structure. A lack of controls on the minimum wage, social regulations and cabotage make the German transport market particularly interesting for large fleets from abroad. Many routes are offered on the exchanges of major Eastern European freight forwarders. Rumors have been circulating for some time that major Eastern European freight forwarders are now using software that can be used to avoid toll payments. If that is actually the case, the price pressure will of course become extremely intensified,” warns Constant.
Investments in the roads are required
The CO2 toll pursues the ambitious goal of promoting sustainable mobility. On the one hand, the CO2 component is intended to encourage transport companies to switch to alternative drives. On the other hand, transport should be shifted to rail, as the additional income from the truck toll should flow into the expansion of rail. But many people are also skeptical about the steering effect.
“The steering effect could evaporate because these alternatives do not exist to this extent or are not sufficiently available. Basically, we are a fan of climate policy. Logistics must become greener and it must be electrified in the long term. But the timing is critical and the amount of the component is also too high,” stresses Petrasch.
He also sees a modal shift as being impossible in the short term.
“The infrastructure for this simply doesn’t exist. If the additional revenue from tolls flows into rail, that could change in 10 to 15 years. At the moment it is very difficult to get the goods on the rails. Some rail operators also have no capacity to process the goods by rail. I’m also talking about digitalisation, which is also missing. I currently see no chance of increasing freight transport by rail. I have the impression that the current politicians wanted to make a big statement, but that this will not have a sensible steering effect in practice,” says the founder of Cargoboard.
The BLV also cannot really understand why the additional income should also go to the railways.
“The additional revenue from the toll should fundamentally flow into the infrastructure for road freight transport. It is not just the upgrading of the road network that is urgently needed. More staff and control points to check minimum wage and social regulations as well as cabotage are urgently needed. There is also a lack of truck parking spaces with appropriate infrastructure everywhere where drivers can use their breaks to relax. The road user fee should therefore remain there. I strictly reject a subsidy from our direct competitor, Deutsche Bahn AG,” emphasizes Constant vehemently.
Commercial diesel would relieve pressure on the industry
In view of the difficult situation, the Federal Association of Logistics & Transport sees an urgent need for action and advocates for measures to relieve the burden on the industry – including the introduction of commercial diesel.
“A first step would be the introduction of a commercial diesel, as has long been standard in other European countries. Legally shortened payment terms of 7 – 14 days for the service/transport provided would also significantly defuse the situation and provide the transport company with the necessary liquidity,” says Konfirm.
Long-term perspectives regarding toll exemptions would also provide more clarity and planning security.
“Basically, planning security must be achieved, e.g. a toll exemption of at least 4 years should be given so that the additional costs of purchasing alternative drives can be economically calculated. In addition to the funding, the charging infrastructure and the price of electricity at the charging station also play a not insignificant role,” says Steady, in conclusion.