International land freight transport operators are raising the alarm about the worsening situation in the sector, warning that they will soon (expected this week) block the Port of Durres and border crossings if urgent measures are not taken.
The main cause that, according to the main market operators, is leading them towards bankruptcy, remains the strong increase in oil prices, which has directly hit operating costs and significantly reduced the competitiveness of Albanian companies compared to those in the region.
According to operators, one of the main problems is related to the bilateral agreements that Albania has with Kosovo, North Macedonia and Montenegro, which were approved years ago to facilitate the movement of goods.
These agreements allow trucks from these countries to enter Albania without the need for a transit permit, and the same applies to the Albanian side.
But in practice, according to them, this has created a major disadvantage for domestic companies (if transit permits are applied to movements between countries, as is the case with EU countries, the number of truck movements is limited equally between countries.)
According to a concrete example brought to the attention of operators, for example, if an operator from North Macedonia, who comes to Albania to load goods for export to Europe, is not supplied with fuel in Albania, but returns to his country again.
Even though the truck traveled up to 300 additional km, it returns to its place, only because of the convenience of being supplied with cheaper diesel, and then continues its route towards Europe.
According to international freight transport companies, this is because the price of oil in Albania is about 30% more expensive than in these countries.
Specifically, the price of oil in the country is 2.1 euros per liter, while in North Macedonia the price of oil is 1.4 euros per liter, in Kosovo 1.7 euros per liter, and in Montenegro 1.7 euros per liter.
Meanwhile, Albanian companies cannot follow the same strategy, namely to be supplied with oil in these countries where the price is cheaper, since they do not benefit from VAT reimbursement for fuel purchased abroad. Moreover, Albanian legislation restricts them from entering the territory with more than 200 liters of oil in the truck tank. Otherwise, they face fines of around 400 euros and the obligation to pay additional taxes on the allowed amount. This puts them in an unequal position with foreign operators.
The cost differences are significant. For the same round-trip route to Germany, an Albanian company can spend around 3,500 euros on fuel, while an operator from the region only 2,200 euros. On a single route, the savings for foreign operators can reach up to 1,000 liters of diesel, making them much more competitive in the market.
The consequences are already visible in the market for all operators in the international trucking sector.
Managers of the company "Shega Trans" told Monitor that their international trucking activity is heading for bankruptcy, due to the high difference in oil prices.
"If before the Covid-19 pandemic they had about 20 trucks for transporting goods in Kosovo, today they operate with only 1 truck, simply to carry the flag of activity with Kosovo."
According to them, this situation has worsened over the last 3-4 years, but has deepened even further after the increase in oil prices in international markets.
Due to the deterioration of oil, operators are demanding immediate intervention from the government, proposing two main solutions:
1. Either the cancellation/revision of bilateral agreements with countries in the region;
2.Or financial compensation for the difference in fuel price.
Otherwise, they warn that the sector risks collapse, with direct consequences for the economy and supply chain in the country./ Monitor
