Increasing Costs of Road Transport

Transportation costs, which do not find much place in Turkey's agenda, make it mandatory for the concerned to evaluate the cost-income situation of companies that do business by road, which is the most important mode of transportation, considering the pandemic process of our country.

Except for the transportation infrastructure fees incurred for all companies engaged in road transport; headlines such as fluctuations in fuel prices, rental car costs, driver wages and personnel salaries, tax-insurance expenses and other costs can be listed at once. While other cost items not listed here can be added to the work, the main issue is that the said costs tend to increase constantly, with exceptions. On the other hand, the only income of the logistics companies doing road-based business remains the freight cost. In addition to the income item shortage, the freight costs do not increase, except for the companies that can be considered as an exception, and even decreases due to the price-oriented competition strategy, which is the chronic problem of the sector, which is constantly intensifying. This mathematical situation means trying to carry out an activity whose income does not meet its costs.