You probably know Germany increased tariffs for trucks in January 2019, but you might not know just how much this will affect your business.
Back in July 2018, the German government extended tolls to apply to all federal roads. That means the country’s toll network is currently made up of 52,000 km of motorways and federal roads. However, the new changes implemented at the start of 2019 saw tolls on these roads increase by between 20% and 60%.
In this post, I’ll detail how the changes might impact your business, but also share a few pointers to help you minimise their impact.
The toll is charged to all domestic and international trucks, that weigh more than 7.5 tons and use sections of the relevant 52,000 km. The toll per km is worked out based on two factors:
To give you an idea of just how big an impact these new rules will have on your costs, I’ve pulled together an example.
In 2018, a truck with 5+ Axles and Euro V emissions, going from Hamburg to Munich would pay €0,156 per km. This year the same truck can expect to pay €0,198 per km. The total distance between the two cities is 775,2 km, of which 770,2 km require the toll to be paid. The total toll cost for 2018 is €120,15, whereas in 2019 the same journey will cost €152,50 – a 27% increase.
Multiply that by the number of trips you need to make across the country and you are looking at a huge jump in expenditure!
If you’re dealing with a pending contract with lanes that go through Germany, make sure you have an agreement in place regarding the change in tolls. Explicitly highlight the price increases and ask the supplier to explain how they will impact costs and what you will be required to cover. If you use a self-billing procedure, ask for updated tariffs to avoid invoicing issues in the near future.
If you’re running a tender, be specific about whether or not you plan to include or exclude German tolls. Ask suppliers to take tolls into consideration when sharing their rates, or simply ask them to specify what percentage of the toll makes up their price. This will give you the opportunity to plan ahead and avoid unpleasant surprises.
The government has primarily implemented these changes to secure funding for the maintenance and construction for road infrastructure. And while many consider these improvements necessary, it is highly likely that many trucks will face much higher charges this year.
2019 is here already, so make sure you act now if you plan to mitigate the impact of the tolls. With prices increasing by up to 60%, make sure you don’t get caught out and make a proactive start to the new year!
You can find more information on the tolls on the Toll Collect website.