The road transport sector has watched costs rise for months, with no government action that meets industry needs. Sources from a major regional newspaper report fuel prices have doubled since last year, accounting for about 40 percent of total operating costs. Ramón Alonso, president of the Galician Freight Forwarding Federation (Fegatramer), notes that the situation has worsened after a recent peak, saying the industry is being swallowed by a steady upswing.
Similarly, Javier Touza, head of the Vigo Port Fishermen Owners Cooperative (ARVI), spoke about the impact. He observes cost increases in maritime transport and acknowledges a ripple effect on land transport, painting a picture of a perfect storm for the sector. The rise in diesel and gasoline prices for fresh fish transport is highlighted as especially significant. For instance, at Gran Sol fishing grounds, fish are unloaded in Ireland and then trucked to Vigo before distribution across Spain.
This route between Great Britain and Galicia has risen by about 10 percent so far this year, and closer to 30 percent over the last 12 months. Shipowners face an added pressure because their business relies heavily on shipping; they are already hard hit by the lockdown at China’s Shanghai port, part of zero-COVID measures in Asia. Wait times there have tripled, from four days to twelve days, a shift noted in prior reporting by this outlet.
Industry sources agree that the government’s 20-cent per liter discount on gasoline and diesel is not enough. The measure, approved by royal decree on March 29 and enacted April 1 to cushion Ukraine war effects, leaves 15 cents to the state while oil companies cover the remaining five cents.
At first glance, this discount appears temporary, valid only until June 30, which adds uncertainty to the sector. Alonso, also upset that the discount does not fully offset recent fuel price increases, remarks, “We don’t know what July will bring.” “If they offer 22 cents instead of 20, it isn’t a solution,” he asserts.
The chairman of Fegatramer argues that the answer is not a one-off concession but ongoing monitoring of oil prices and policy responses aligned with fluctuations.
Touza remains unconvinced by the 20-cent measure and proposes a different approach. He argues that higher costs must be reflected in selling prices, noting that prices are not very flexible. Auctions determine what ships receive for fish, he explains. ARVI also calls for revisiting the food supply chain law and adopting broader, more ambitious measures to counter fuel price rises because a global presence is essential for Galician fisheries. He adds that some costs remain inaccessible due to price hikes.
For Vigo’s shipowners, another hurdle has emerged. A truckers’ strike has led to a set of agreements allowing ground carriers to continue, though these arrangements add to the overall costs faced by shipping companies.
As Touza emphasizes, the interactions span sea and land transport. When fuel goes up, the whole chain feels the pinch, a chain he describes as a knock-on effect.
Freight from Spain to UK, the most expensive in Europe
According to a European road freight map produced by Upply, the first quarter of this year shows road freight from Spain to the United Kingdom rising to 2,489 euros per trip, the highest among surveyed European routes. The return leg from the UK to Spain, vital for Galician shipyards operating on Gran Sol, costs 1,596 euros. Transportation to France is 1,525 euros, and imports from France into Spain run at 1,417 euros. Meanwhile, road shipments with Germany show 1,763 euros for imports from Germany and 1,631 euros for exports to Berlin.