From Russia invading Ukraine, to transport companies fighting a surge in fuel prices.

The repercussions of Russia's invasion of Ukraine are already at our doorstep. The increased cost of gasoline and diesel prices are already starting to have a big impact on our customers.?

Zendera's customers do local area distribution (We define that as "Deliveries less than a hundred kilometres from a warehouse") and have historically had very tight margins. The increase in fuel prices has hit them hard, and are eating up a lot of their margin.

The increase in transport prices will lead to a push on all prices. We should prepare for an increase in the price of virtually all goods because of the increase in transport costs.?

Some companies experience their drivers leaving, or refusing to work because they are working as independent contractors. This is understandable, they are literally losing money doing their job.

Others are able to use the force majeure clause in their contracts. With those, they're able to increase the prices of the transport to make up for the increase in prices. But it remains to be seen how long customers are willing to accept that. All the transport companies that are unable to increase their prices are in real danger of going bankrupt, especially because of liquidity concerns. They're unable to pay drivers, or the drivers are unable to pay their fuel bills, etc.

Is your transport company struggling with the current surge in fuel prices? Zendera's route optimising solution has helped some of our clients to save up to 46% in fuel costs. Send us an email at [email protected] for a quick 15-minute demo!