Germany’s new road charging system which came into force from the New Year, will result in higher transport costs for deliveries to customers in Germany and other European countries.

The new charge is approximately DKK 1 per km on German motorways for HGVs over 12 tons. Arla Foods uses external hauliers to deliver its dairy products across Europe.

”Since this is a government-imposed charge, we cannot just demand that the hauliers carry the added cost,” says Claus Haase, Logistics Purchasing Manager, Global Purchasing. “We therefore expect the new road charges to add DKK 10 to 12 million annually to our costs.”


Sweden plans to introduce road charges
Sweden also plans to introduce a system of road charges and also to raise tax on diesel. This is expected to cost the Swedish food sector SEK 1.1 billion per year.

Hans Åke Hammarström, Director of the Sweden Division, said at a recent press conference: “The introduction of a kilometre-based road charge will add SEK 121 million to Arla Foods’ costs.”

Hans Åke Hammarström emphasised the importance of maintaining a level playing field for all players in the European dairy industry.

”Although Arla Foods consistently works towards reducing the number of kilometres covered, we cannot alter the fact that Sweden’s geography means that we have to drive long distances,” Hans Hammarström said.