How has the rise in fuel costs impacted logistics?

We can easily predict that any increase in fuel costs will affect the direct costs of a sector that focuses its activity on transportation.

Whether by land, air or sea, transportation requires fuel, which means that the relationship with fuel prices is a direct one. This also explains why an increase in fuel prices causes inflation in the transported product.

Broadly speaking, we can say that a service that has thus far been making a profit may cease to do so if fuel prices increase, and vice versa. Although Law 15/2009, of 11 November, states that if the price of diesel increases by 5% from the day on which a contract is signed, carriers may modify their invoices to reflect the new costs, in practice the strong competition in the sector means that such changes are unfeasible and passing on costs becomes difficult. Conversely, when the price of fuel drops, companies rush to demand lower invoices. As such, it is essential to define the clauses regarding diesel in logistics contracts.