Transport overheads soar for logistics businesses says FTA Ireland

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Figures from FTA Ireland’s Manager’s Guide to Distribution Costs (MGDC) demonstrate the effects of
the current economic crisis on industry, with transport overhead costs reported to have increased,
on average, by 17.7% in the last year.

Published today, 29 November 2022, the report examines the impact of post-Brexit changing supply
chain patterns, the financial consequences of the Covid-19 pandemic, and the impact of the war in
Ukraine.

CEO of FTA Ireland (FTAI), Aidan Flynn, comments: “We are delighted to once again be publishing
our Manager’s Guide to Distribution Costs, which is now in its fourth year. The report has
established itself as the definitive guide for all those involved in the management, procurement, or
ownership of freight transport services and is designed to provide logistics businesses with the data
needed to build resilience.

“Figures from this report demonstrate the true effects of external global factors on industry. Rising
fuel costs continue to place an unsustainable financial burden on the sector, with fuel now
accounting for 41% of total operating costs. Logistics businesses typically operate on narrow profit
margins and the combination of these rising costs – along with maintenance costs which have, on
average, increased by 11.9% – are cause for concern. FTAI will continue to work collaboratively with
stakeholders, members and government to deliver solutions during these challenging times.”

Minister of State at the Department of Transport, Hildegarde Naughton – who attended the launch
of the report – comments: “The Government is acutely aware of the cost pressures experienced by
the freight sector since the outbreak of the conflict in Ukraine. The Government has taken action to
alleviate these pressures with several measures targeting increased energy costs – a reduction in
excise on petrol and diesel introduced in March was recently extended out to end February 2023;
over €15.5million was provided to more than 3,000 licensed haulage operators this year to support
the liquidity of those businesses, the NORA levy will be reduced to offset a planned increase in the

carbon tax in 2023 and two major business support schemes have been established – €200 million
for the Ukraine Enterprise Crisis Scheme for businesses in manufacturing and internationally traded
services and €1.25 billion for the Temporary Business Energy Support Scheme for businesses
chargeable to tax under Case I trade or Case II profession. The Manager’s Guide to Distribution Costs
is a vital reference document for all in the freight and logistics sector to benchmark costs and to plan
for the future.”

Owen Clifford, Head of Retail Sector, Bank of Ireland, comments: “Bank of Ireland recognises the
importance of this latest report issued by the FTAI. In providing topical insights for the distribution
and logistics sectors, it supports the growth and sustainability of these pivotal elements of the wider
Irish business eco-system.”

To view a copy of this report, published in conjunction with Bank of Ireland, BWG, ENPROVA, and
specialist research agency Analytiqa, please visit: LR-FTAI-Managers-Guide-to-Distribution-Costs-
Report-2022.pdf

For more information please visit: https://www.ftai.ie/

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