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Mallorca hauliers threatening stoppages unless there is aid to offset rising fuel prices

Many businesses can no longer absorb the increased costs

For hauliers, shipping costs are an additional factor | Photo: Archive

| | Palma |

At a meeting with the Balearic Government on Monday, the freight transport association warned that its members will consider stoppages if aid to offset the sharp rise in fuel prices is not forthcoming. The association's president, Ezequiel Horrach, said many businesses can no longer absorb the increased costs and that the situation has become "unsustainable".

"Either we fix it or we will stop." This was his stark message, Horrach acknowledging that such a measure could coincide with the start of the tourist season. This would affect the supply of goods, but he insisted that the sector has reached its limit.

The soaring price of diesel, according to Horrach, means that 50% of operating costs is going on fuel. This has normally been around 33%. Businesses are therefore facing negative margins. The impact is especially severe for small hauliers. "Those who are out on the road all day - the small companies and the self-employed - these are the ones suffering the most, and many are already struggling to make ends meet."

The sector is trying to negotiate formulas that would allow for price adjustments or activate compensation mechanisms linked to fuel price fluctuations, similar to those implemented during the energy crisis caused by the war in Ukraine. However, the association explains that the current situation is generating significant uncertainty because the price of diesel is constantly fluctuating.

The hauliers add that insularity makes their operations even more expensive. In addition to the costs of land transport, there are the shipping costs. Horrach insisted that the Balearics require special treatment due to the insularity. Among the proposals are direct subsidies per vehicle and aid linked to fuel consumption, measures applied in previous crises. "We're not asking for anything new; just that we receive the same support as before so that companies can continue operating."

Also on Monday, the Balearic Transport Federation warned that coach operators, distributors and others are operating "at their limit" following the sharp rise in diesel prices, which in recent months has significantly increased operating costs. President Rafael Roig said: "Right now, the situation is critical. Fuel is the biggest cost for transport companies and it's rising continuously."

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