Russian truckers warn clients of rate hikes of at least 10% amid fuel crisis

Russian trucking companies have started warning clients about rate hikes of at least 10%, the Russian business daily Kommersant reported, citing industry participants.

Tatyana Patuzhanya, co-founder of the Sigma logistics and transport group, confirmed receiving notification from fellow truckers of a rate increase starting July 1, with a minimum increase of 10%. She noted that this is likely not the ceiling.

Igor Rebelsky, founder of VIG Trans, said domestic shipping rates are currently "relatively stable" but that conditions for an increase have formed. Trip planning has become more complicated due to fueling restrictions and supply disruptions at gas stations in the regions, and carriers are factoring these costs into rates, which have already risen by about 5%.

Georgy Vlastopulo, head of the logistics company Optimalog, said rising fuel costs over the past week and a half have pushed freight shipments from China up by an average of $700 per trip. On the China route, daily mileage has dropped from 600–700 kilometers to 500 kilometers.

Andrei Zelinsky, CEO of Pontis Expedition, said carriers are reluctant to take long-distance orders due to uncertainty over fuel availability and prefer orders within urban agglomerations within a radius of 100–150 kilometers. NC Logistic said carriers are either refusing orders altogether or significantly inflating their prices.

Market participants surveyed by Kommersant said there is no real alternative to trucking. In their view, it holds an edge over rail freight in flexibility and delivery times, and since the entire transport industry has faced the same problem, there is nowhere for cargo to go.