Foreign Drivers a Threat to Transportation, but Positive for Exporters

This shows a review of conditions in
transport and logistics market by Institute of Transport Economics (TØI). The
difference in wages between a Norwegian driver and a driver from one of the new
EU member countries makes considerably greater cost differences than the sum of
all charges for road transport. The report shows that wages and social costs
represent the largest share of the performance cost of long-haul with the
tractor and trailer, with 40% in total.

Followed by fuel, including taxes (24%),
capital costs (depreciation and interest) with a total of 16%, while the annual
fee is comparatively a very marginal cost ratio (less than 0.5%). The public
framework consists of fuel tax, social security costs and weight fees, which
together account for 19% of transport costs. Transport costs' share of sales
varies significantly across industries, but is on average about 40% of
logistics costs, or about 6% of turnover, but the industries that supply goods
with low processing level, the higher transport cost share than finished goods
and goods with high unit value.

Accordingly, the differences in labor costs
for a Norwegian driver compared with a driver from the new EU countries are
from 80 to 90%. This corresponds to a difference in the performance cost of about
40%. Cost differences illustrate why the Norwegian-registered trucks for an
extended period of time have lost market share by cross-border shipments. This
cost difference, according to TØI, may contribute to Norwegian exporters to
have opportunities for cheap return transport out of the country, and also help
to open new markets for Norwegian exporters even with small volumes.

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