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Logistics has risen in price by 20% due to the fuel crisis

Logistics has risen in price by 20% due to the fuel crisis
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ATI Freight Exchange index.SU, which reflects prices for the 100 most popular road transportation destinations in Russia, has reached a historic high. Logistics prices have risen by 20% as a direct result of fuel shortages in the domestic market. This is already a fait accompli in carrier prices, not an analyst's forecast.

Twenty percent of the increase in car freight rates in a short period is a figure that is difficult to attribute to seasonality or a one—time surge in demand. Index ATI.SU It is based on real transactions between shippers and carriers on the country's most massive routes, and that is why its historical significance is not an abstract statistic, but a direct reflection of what every company planning transportation right now will see in the offers from transport companies.

The reason for the growth is clear and consistent. The shortage of fuel in the domestic market, which industry participants have been talking about for several weeks, translates into the cost of transportation almost directly — fuel remains the largest variable cost item for any automobile carrier. When the price of fuel increases faster than the carrier manages to renegotiate long-term contracts, the difference is included in the current rates for one-time and short-term transportation in the first place.

That is why the ATI index.SU, which operates with a large number of one—time transactions, reacts to fuel shortages faster than official statistics or average industry reports - here you can see the real price at which carriers are ready to take cargo today, rather than the average figure for the past month.

For shippers who are still working on long—term fixed-rate contracts, the situation is paradoxically favorable in the short term - fixing protects against the current surge. But sooner or later the contracts come up for revision, and the carrier, which is losing its margin on fuel, will insist on indexing the rate at the next round of negotiations, referring specifically to the objective data of the index. ATI.SU .

For companies without long-term fixation, operating at spot rates for each shipment: growth has already occurred, and it is worthwhile to plan a logistics budget based on the new reality, and not on the prices of a month ago. Use the ATI index itself.SU as an objective benchmark in negotiations with carriers is a recognized industry indicator that is difficult to challenge from any side of the transaction.

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