International Freight Forwarding Company ABIPA
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  • Shipping robots for the Robot Ball exhibition
  • Joint project with OIL&GAS finished!
  • Piano delivered from Russia to China
  • Shipping aluminum for the Boeing Company
  • Delivery of equipment for the Russian VSMPO-AVISMA steel company
  • Deliveries in the shortest possible time is our strong point
  • Project logistics for unique cargo delivery
  • Joint project with Spanish company TIBA
  • Prompt deliveries from Europe during the peak period
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    +370 5 278 9561
    +7 495 781 60 55Moscow Office
    Request a Call
    International Freight Forwarding Company ABIPA
    Company
    • About company
    • Team
    • Certificates
    • Projects
      • Shipping cargoes in the North and Siberia —
      • Shipping robots for the Robot Ball exhibition —
      • Joint project with OIL&GAS finished! —
      • Piano delivered from Russia to China —
      • Shipping aluminum for the Boeing Company —
      • Delivery of equipment for the Russian VSMPO-AVISMA steel company —
      • Deliveries in the shortest possible time is our strong point —
      • Project logistics for unique cargo delivery —
      • Joint project with Spanish company TIBA —
      • Prompt deliveries from Europe during the peak period
    • Presentations
    • Company's Life
    • Career
    • Сompany history
    • News
    • Our clients
    • Price inquiry
    Services
    • Air carriage
    • Road transport
    • Customs processing
    • Project logistics
    • FEA services
    • Customs broker
    • Sea transport
    • Terminal services
    • Railroad shipments
    Projects
    Team
    Clients
    Contacts
    For Network Members
      International Freight Forwarding Company ABIPA
      Company
      • About company
      • Team
      • Certificates
      • Projects
        • Shipping cargoes in the North and Siberia —
        • Shipping robots for the Robot Ball exhibition —
        • Joint project with OIL&GAS finished! —
        • Piano delivered from Russia to China —
        • Shipping aluminum for the Boeing Company —
        • Delivery of equipment for the Russian VSMPO-AVISMA steel company —
        • Deliveries in the shortest possible time is our strong point —
        • Project logistics for unique cargo delivery —
        • Joint project with Spanish company TIBA —
        • Prompt deliveries from Europe during the peak period
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      • Air carriage
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      • FEA services
      • Customs broker
      • Sea transport
      • Terminal services
      • Railroad shipments
      Projects
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        International Freight Forwarding Company ABIPA
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        International Freight Forwarding Company ABIPA
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            • Piano delivered from Russia to China
            • Shipping aluminum for the Boeing Company
            • Delivery of equipment for the Russian VSMPO-AVISMA steel company
            • Deliveries in the shortest possible time is our strong point
            • Project logistics for unique cargo delivery
            • Joint project with Spanish company TIBA
            • Prompt deliveries from Europe during the peak period
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          • Shipping robots for the Robot Ball exhibition
          • Joint project with OIL&GAS finished!
          • Piano delivered from Russia to China
          • Shipping aluminum for the Boeing Company
          • Delivery of equipment for the Russian VSMPO-AVISMA steel company
          • Deliveries in the shortest possible time is our strong point
          • Project logistics for unique cargo delivery
          • Joint project with Spanish company TIBA
          • Prompt deliveries from Europe during the peak period
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        J. Jasinskio str. 12, 4th floor, LT - 01112, Vilnius, Lithuania
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        • Why Cargo Transportation Keeps Getting More Expensive in 2021

        Why Cargo Transportation Keeps Getting More Expensive in 2021

        Why Cargo Transportation Keeps Getting More Expensive in 2021
        19 November 2021
        News

        The rising cost of cargo transportation can only partially be explained by the attempt of market players to take revenge and compensate for losses of 2020. ABIPA analysts predict increases in the prices of air transport by the New Year due to objective reasons. It has to do with lack of flights and their high occupancy, as well as unstable situation in airports caused by regular flight cancellations and delays amidst pandemic.

        Cause-and-effect Relationship

        Due to a small number of flights to the US, the cost of chartering doubled as compared to the times before COVID-19. Tariffs will continue to escalate in this section and many others due to decreased cargo capacity on passenger airlines, sanitary conditions, “aseptic services”, etc.

        ABIPA experts note that increase in prices is also expected for road transport by the New Year. Tariffs fluctuate due to constantly changing market conditions: waves of pandemic, government decrees on border entry restrictions, etc. Other factors of growing prices for road transport are rising costs of fuel and spare parts, smaller players exiting the market, and lack of drivers.

        Rising tariffs for air and inland cargo transportation is directly connected with global container crisis. The shortage of empty reusable containers in the ports of Southern Asia resulted from its huge accumulation in the US and EU. The imbalance was caused by China rapidly terminating lockdown and returning to its pre-COVID-19 production capacities. Due to this, a severe shortage of empty containers was observed in the beginning of 2021 enhancing the development of railroad and air transportation globally.

        Unstable sea transportation forces importers to look for new multimodal transport routes. Logistics companies shift to the demands of customers changing usual cargo routes. Establishing more stable delivery routes leads to increased price of services.

        The growth of logistics costs by the New Year results from widespread digitalization and introduction of IT-technologies. Thus, implementation of Platon electronic system affected tariffs of Russian freight-forwarders with cars exceeding 12 tons in mass. Annual fee indexation is one of the factors of increased prices for road transport within the RF.

        Digitalization and Increase in Logistics Costs by the New Year

        Freight-forwarders introduce highly efficient intellectual technologies to reduce the cost of manual work and vehicle use. Robotic automation of operations makes them transparent for clients and the company itself. Installing telematic equipment allows to monitor the state vehicle and cargo en route, fuel consumption, etc.

        According to analysts, this will lead to a 20% acceleration of processes in cargo transportation by 2025, cutting fuel and repair costs, etc. However, the introduction of advanced IT-technologies requires substantial spending from logistics companies at an early stage. That is why digitalization is at the moment another strong factor of growing prices for road cargo transportation.

        To Sum up

        The growth of prices for air transportation by the New Year, as well as increased tariffs for land transport results from a variety of reasons. However, in the future, with no new force-majeures at hand, the market situation will stabilize.

        ABIPA specialists are recognized logistics experts. We always keep our finger on the pulse and monitor slightest changes in transport services market. We give high-precision forecasts of the situation and take measures in a timely manner. Our experience, resources, and capacities allow for fining the best possible solution for each client in any situation.

        If your business is tied to transporting goods within Russia or abroad, do not hesitate to contact us: we will help you minimize transportation costs and push boundaries, at the same time.

        Start your cooperation with an individual consultation on the selection of tools and services.
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        Air carriage
        Road transport
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        Project logistics
        FEA services
        Customs broker
        Sea transport
        Terminal services
        Railroad shipments
        Projects
        Shipping cargoes in the North and Siberia
        Shipping robots for the Robot Ball exhibition
        Joint project with OIL&GAS finished!
        Piano delivered from Russia to China
        Shipping aluminum for the Boeing Company
        Delivery of equipment for the Russian VSMPO-AVISMA steel company
        Deliveries in the shortest possible time is our strong point
        Project logistics for unique cargo delivery
        Joint project with Spanish company TIBA
        Prompt deliveries from Europe during the peak period
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        +370 5 278 9561
        +7 495 781 60 55Moscow Office
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        оffice@abipa.lt
        J. Jasinskio str. 12, 4th floor, LT - 01112, Vilnius, Lithuania
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