The German government has recently presented its Climate Protection Modernization Package, also known as Klimaschutzprogramm 2030. The program consists of a package of measures to reduce Germany’s greenhouse gas emissions and achieve its climate goals by increasing the LKW-Maut. The package outlines a range of regulations to be implemented in 2030.
While the package affects various sectors it is likely to significantly impact the road freight industry in particular. Let’s see what measures will directly affect the logistics sector.
Carbon Pricing: how does it work?
One of the measures is the CO2 pricing mechanism for the transportation of fuels, including diesel fuel used by trucks. It is a mechanism that aims at reducing greenhouse gas emissions by placing a price on carbon dioxide emissions. The idea is to make emitting CO2 more expensive. This should incentivize individuals and businesses to take action to reduce their emissions.
Fuel suppliers must purchase certificates corresponding to the amount of CO2 emissions generated by the fuel they sell. The price of these certificates will be set by the government and will increase over time. This, in turn, will increase the cost of fuel. By creating a financial disincentive to emit CO2, the pricing mechanism will encourage the adoption of more sustainable practices and technologies, ultimately helping to reduce greenhouse gas emissions and combat climate change.
Recent information on the development of the Climate Protection Modernization Package suggests that on 1 December 2023, there will be a surcharge of 200 euros per ton of CO2.
LKW-Maut in Germany: what is it?
Another aspect of the package that could affect the road freight industry is the introduction of a national truck toll (LKK-Maut) for all federal roads in Germany, which is currently being negotiated. The aim of the toll is to raise revenue for infrastructure investment and to encourage the use of more sustainable transportation modes.
The LKW-Maut is a road charge for heavy goods vehicles (HGVs) with a gross vehicle weight of over 7.5 tons that are using federal highways in Germany. The toll rates are set by the German government and are adjusted regularly based on factors such as inflation and investment needs. It is recent news that from December 2023, there will be a CO2 differentiation in the existing toll rates. In other words, the toll will also be linked to the amount of carbon dioxide emissions which will directly translate into a sharp rise in the toll rate.
What are the consequences of the Maut increase for the road freight industry?
It is evident that measures like the ‘Carbon Pricing’ and the ‘National Truck Toll’ will mean that the freight sector will face higher fuel and road costs which could impact their profitability and competitiveness. As a consequence, these price increases will also indirectly affect the prices of these companies’ services for their customers. However, the German Climate Protection Modernization Package is likely to have both positive and negative impacts on the road freight industry. While there will undoubtedly be cost increases for companies, the package also includes measures aimed at promoting the use of more efficient and low-emissions vehicles or optimizing existing vehicles with emissions-reducing technology. This could help to reduce the carbon footprint and improve the industry’s long-term sustainability.
Does Emons Cargo 2WIN has a solution for the Maut increase?
To be completely honest, here at Emons Cargo 2WIN, we are not particularly worried about it.
We know that our competitiveness in the road freight market will not be impaired or damaged by measures aimed at a CO2 emissions reduction. The reason is simple: we specifically designed our transport solution 2WIN to be cost-effective and sustainable. By loading and shipping up to 54 pallets with one of our 2WIN double decks, the various costs of transport significantly decrease. Emons Cargo solution 2WIN has always been cheaper than standard freight solutions. Now, with ever more stringent and costly regulations, like the German national truck toll, moving more volumes with less truck movement becomes more advantageous than ever.
Let’s see an example.
Emons Cargo 2WIN has a customer who needs to move a payload from the Czech Republic to the United Kingdom. The route goes across all of Germany.
Let’s consider our Euro VI 2WIN trailers. They weigh more than 18 tons and have 5 axles. The maut for these kinds of trailers amounts to 0,348 euro per 1 driven km. In our example, our 2WIN drives 660 km in Germany, from the Czech to the Dutch border. In this example, the total cost of the German toll is 229,58 euro.
Let’s check how much this is per pallet by dividing the total cost for the 54 pallets that the 2WIN can load:
229,58 / 54 = 4,25 euro.
But what if, for the same delivery, you use a standard trailer with a loading capacity of 33 pallets?
229,58 / 33 = 6,95 euro.
There seems to be a difference of 2,7 euro per pallet. To this saving, of course, you should also add savings on administration and fuel costs. It is quite obvious: if you can move up to 64% more volume per trip, you will need fewer trucks for your shipments. Logically, you will have less costs per pallet.
Lower your costs on the German Maut with Emons Cargo 2WIN!