On top of the agro-industry's own problems, the transport sector has had a difficult few years since the rise in costs during COVID times. In addition to a 30% increase in the price of tractor units and semi-trailers, there has been a rise in tolls and a concerning lack of drivers due to the lack of appeal of the profession for the new generations.
Several other factors are making life difficult for shippers, who feel that they are not receiving enough institutional support. Mercedes Pérez, manager of Miratrans, says that "in agriculture, there are still some great years, but this isn't the case in the transport sector." The company was founded 30 years ago by a family with a farming tradition. "Since part of the company grew vegetables, Miratrans was created to transport them with its first two units. Today we have 145 employees, a fleet of 110 trucks with routes to the United Kingdom, Germany, the Netherlands, and France, and more than a few problems to overcome."
"With Covid, costs increased by 30%, and they have not been regulated again. It's the case, for example, of the price of tractor units. Tolls and labor costs are other open fronts. The worst part is that not even 5% of these higher costs are passed on to the customers. The big transport groups can tolerate these imbalances better than we can, but investment funds are already seeing that transport is a difficult sector, with just around 2% or 3% profitability," says the manager.
Given this, "it's impossible for the sector to be appealing for the new generations. Drivers are away for many days, and, proportionally, they are still earning the same as they did 20 years ago. A truck driver's salary doesn't make up for the rising cost of living. Something that never happened to me before is happening now: having trucks standing idle without a driver," she says.
Become a specialist or disappear
After Brexit, many companies stopped doing business with the United Kingdom because of the difficulties involved, bureaucratic procedures, and the amount of documentation required. However, "we decided to become specialists. A major problem on this route is the penalties for stowaways found in the trucks. Despite alarms and electrical systems, they can still gain access by cutting a hole in the roof of the trailer. We are talking about fines of between €150,000 and €200,000, depending on the number of people, which means losing a whole year's profit."
As for the Mediterranean corridor, the manager says that "the best thing about road transport is the door-to-door speed. We can get the goods to the UK in two and a half days. Although this is positive for everyone, we'll have to see in which sectors it can be most useful, because with fruit and vegetables, time is the key."
Regarding the purchase by investment funds of transport companies in the area, Pérez says: "They have already seen that transport is not as profitable as expected, and that's clear when looking at the balance sheets they are presenting. There are companies that used to achieve 20% to 30% profits that are now recording losses."
The sustainability of trucks is still unclear, as "electric trucks are fine for short, fixed routes of a maximum of 300 km, but for long routes, using them is unfeasible. The adoption of green hydrogen also won't happen in the short term, because the fleets would need to be fully adapted," he says.
In short, for the transport sector to adapt to the new times, "it is clear that we need institutional aid. We need the sector to become attractive again, renewing fleets to make them safer and more sustainable."
For more information:
Mercedes Pérez
Miratrans
Tel.: +34 968 174 393
[email protected]
www.miratrans.net