OREANDA-NEWS. January 08, 2010. The Association of International Motor Freight Forwarders of Azerbaijan (ABADA) reports sharp decline of tariffs for cargo transportation to Russia.

ABADA says that tariffs have decreased from USD 1-1.2 to USD 0.87 per km.

“Possibly it is good for consignors, but it is bad for carriers. Such tariff both diminishes profitability of carriages and deprives road carriers financial resources for their development. If earlier proceeds from a cargo trip were USD 5,000-6,000, now it has dropped to USD 3,000-3,500. As a result, carriers in fact work on driver himself, and cannot renew their truck fleet. Already now many road carriers have problems with meeting commitments on motor vehicles bought on credit or in leasing,” ABADA says.

Road carriers cannot raise tariffs because of small volume of export cargo in the country.

“Today we cannot even bargain on price and content ourselves with consignors’ offers,” the Association said.