The German Federal Government is planning to expand the road toll by introducing a CO₂ emissions tax. This will come into force on Dec 1, 2023. The purpose of this tax is to reduce CO₂  emissions in the long term and to accelerate the adoption to more climate-friendly driving technologies in the transport sector.

According to the Chemnitz Chamber of Industry and Commerce, the changes in the toll law are expected to result in additional annual costs of around €7.62 billion for the German economy, taking into account that the coalition agreement stipulated the avoidance of a double burden through the CO₂ price.

What type of costs will be part of the CO₂ emissions tax?

A CO₂ toll is expected to be introduced in Germany from December 1, 2023, based on the vehicles’ CO₂ emissions. An additional partial toll rate of 200 euros per ton of CO₂ will be charged. This means that vehicles that emit more CO₂ will have to pay higher tolls. Emission-free trucks will be exempt from the toll until the end of 2025. The exact toll rates vary depending on vehicle type and size, emission class and the type of road being driven on.

The toll is made up of the following four components: 

For example, the toll rate for a vehicle in the Euro 6 emission class with an axle and weight class of more than 18 tons and up to 3 axles is 30.50 cents per kilometer. This is made up of 2.2 cents for air pollution, 1.6 cents for noise pollution, 14.3 cents for infrastructure and 12.4 cents for CO₂ emissions.

To provide a concise illustration of the effects of the toll increase, see below example with a route from Stuttgart-Zuffenhausen to Hamburg. The route covers a total of 660.1 km. If we consider a semi trailer truck with 5 axles, a total weight of up to 40 tons and emission class Euro 6, the following picture emerges: the current toll costs are 125.45 euros. The expected “new” toll costs as of December are 229.77 euros.

This corresponds to an increase of an impressive 83.2%. This example illustrates the significant additional financial burden that transport companies will face. For more environmentally friendly vehicles that are better than the Euro 6 standard, the toll rates are significantly lower. For example, a G5 category vehicle with more than 18 tons and up to 3 axles pays only 5.20 cents per kilometer, with the cost of CO₂ emissions set at 0 cents.

This cost factor is intended to create an incentive to purchase environmentally friendly vehicles. A detailed overview of the toll rates from December 1, 2023 can be found in this document: Toll rates from 01.12.23.

What are the changes in detail?

Introduction of the CO₂ toll: From December 2023, a new tariff feature will be introduced, the CO₂ emission classes. For each ton of CO₂ emitted by a truck, a surcharge of €200 will be levied. This means that all vehicles with a technically permissible total mass of more than 7.5 tons will have to pay a partial toll rate for CO₂ emissions in addition to the existing toll.

Exemptions from the CO₂ toll: Emission-free heavy-duty vehicles are exempt from the toll until December 31, 2025. After that, they are to pay a toll rate reduced by 75 percent.

Change in weight class: With the introduction of CO₂ emission classes, the basis for assignment to a weight class changes. Previously, the maximum permissible gross weight was used, but now the technically permissible gross weight of the truck and, if applicable, the trailer is used. This means that vehicles can fall into a higher weight class than before.

Toll obligation for natural gas-powered vehicles: From January 1, 2024, vehicles powered by natural gas (CNG/LNG) will be subject to tolls according to a classification into pollutant classes, similar to vehicles powered by diesel. The current toll exemption will therefore continue to apply until December 31, 2023.

Truck tolls for vehicles of 3.5 tons and over: From July 1, 2024, all vehicles with a technically permissible total mass of more than 3.5 tons will have to pay tolls for the use of federal highways.

Exceptions apply to zero-emission vehicles with a technically permissible total mass of up to 4.25 tons. These are permanently exempt from the toll. Similarly, so-called craftsmen’s vehicles with a technically permissible total mass of less than 7.5 tons are exempt from the toll.

What revenues does the German government expect?

With the new toll rates, toll revenues of more than 71 billion euros are expected by Dec. 1, 2027. Truck tolls have been levied on federal highways in Germany since 2005. In several stages, the toll was extended to all federal highways and vehicles with a gross vehicle weight of 7.5 tons or more. In 2022, revenue from the truck toll amounted to around 7.4 billion euros.
The use of the toll revenue is also being reorganised. Half of the toll revenue will continue to be reserved for improving the transport infrastructure for federal highways. The remainder may and will now be allocated to mobility in general and to railways.

In today’s freight world, tracking and tracing is the standard norm to create real-time visibility. 

To ensure tracking compliance European drivers are requested to download a lot of different tracking apps. This can result in lower adoption rates and usage because the installation, registration and onboarding can be time-consuming. Rubiwin, the carrier platform of Redspher, was looking for a user-friendly alternative for drivers and carriers to ensure 100% tracking compliance.

Rubiwin has found the perfect solution and is happy to announce its partnership with ZeKju.

ZeKju offers a digital, app-free and GDPR compliant tracking solution with a high degree of flexibility. It connects perfectly with popular and widely used messenger apps such as Telegram, Viber and WhatsApp. The technology eliminates the need for drivers to install another tracking app on their phone or any additional software for dispatchers.

ZeKju makes it very easy for drivers to adopt and start using the GPS tracking in a fast and efficient way. Via their favorite messenger, they can easily share their exact location, communicate via chat and share digitally images of transport documents. 

Especially for carriers without proper telematics systems, they can now automatically communicate their position via the application.  All information is routed via secure ZeKju servers to safeguard data privacy management and data security. The ZeKju solution contributes to the end-to-end digitalization process of the Redspher platform. E.g. digital transmissions of transport documents can be arranged directly from the driver towards the Rubiwin carrier platform.

Tim Moonen, Fleet Manager at Rubiwin states:“With ZeKju, we are now able to offer an app-free tracking solution to our carriers and drivers, next to our apps Easy2Trace and Shippeo.  ZeKju is very easy to implement, and the driver has full control over it. At the same time, this key solution contributes to achieving a complete real-time tracking view.” 

ZeKju is fully integrated into the TMS system of Rubiwin, creating a seamless user experience for the dispatchers of Redspher.

Co-founder of ZeKju, Max-Alexander Borreck comments:“We are very happy to work with Redspher! From day 1 onwards, the Redspher team was convinced of ZeKju’s vision of an app-free transport execution digitalization. Together, we have developed a solution that will help close visibility gaps for the customers of Redspher”. 

Estimated at $ 957 billion, the logistics market is expected to grow 7.9% by 2027. In order to improve productivity and to overcome the constraints of an increasingly competitive market, companies need to optimize their supply chain. To do so, they must rely on the support of innovative and efficient software that allows them to efficiently manage the daily flows.

A digital marketplace that facilitates on-demand delivery by connecting shippers and carriers: Easy4Pro simplifies the management of purchasing processes and helps reduce costs by providing real-time information on market trends.

Logistics has become one of the most important aspects of business management. In a global context of a health crisis, the Russian-Ukrainian conflict has added additional tension on supply chains which are already being tested by many disruptions.

To guarantee the smooth running of logistic operations, it is crucial for companies to find reliable suppliers and to be able to benefit from effective assistance in the event of a problem.

For this, technology is the solution for seamless logistics. Indeed, companies are increasingly investing in better digital technologies to support their transportation operations. Transportation procurement management software, for example, makes it easy to find the best carrier for each transportation need and tracks the progress of their service. But before choosing the right logistics tool, it’s essential to consider a few factors to make the right choice.

1 – Select new and reliable suppliers

The amount of 3PL logistics services available can be immense. Logistics software should provide access to a large number of providers. At the same time, it should make it easy to identify the trustworthy ones. And above all, it should know how to measure the price/quality ratio of existing suppliers and perhaps even expand the collaboration. For example, the ability to invite new companies, but also to access the history of suppliers, are highly desirable features.

2 – Helpful Data Analytics

Logistics is a complex process involving various factors such as delivery time, costs, and administrative procedures. If companies do not automate their logistics processes, they may lose the chance to collect valuable data insights.

A system that is capable of collecting this information in a transparent manner, processing it and presenting it in an easy way, offers a variety of opportunities to optimize the process.

Tracking costs over time, the number of delayed shipments and supplier-specific key performance indicators provide useful insights for selecting the right supplier for the next order.

3 – Facilitating transparency and regulatory compliance

With importing products a large number of regulations have to be taken into account, which can differ per country. At European level, 2022 is the year when several regulations from the EU mobility come into effect. These will substantially change the legal framework and governance of road transport in Europe. It is therefore important to examine to what extent the chosen logistics software is oriented towards procedural compliance. Some platforms like Easy4Pro include freight auditing services, and even intermediation in case of delivery problems.

4 – Finding the right balance between automation and support

Next to having access to reliable suppliers and a relevant analysis, the ability to receive effective support in following regulations is also important.

Hence, the combination of automatic processes and real-time support is probably the best approach, and this is where Easy4Pro excels. Thanks to a very quick and simple transition in the system, companies can start optimizing their logistics processes almost immediately.

“The deployment of the Easy4Pro solution did not cause any difficulties internally. From the moment I presented the solution, the teams immediately understood the importance of a platform that would allow us to bring transparency in our purchasing process while also reducing costs. The training provided by Easy4Pro allowed the teams to ask the more technical questions, even though the tool itself is quite intuitive and easy to use.”Olivier Gouzou, supply chain regional manager of Magneto Automotive, CLN Group

Visit www.easy4pro.com for more information.

In its 40 year history Redspher has continuously focused on innovation and self-reinvention based on customer evolving needs. Starting as a regional carrier back in 1981, the group evolved into Europe’s leading premium freight forwarder throughout the nineties and beyond. Driven by the technological revolution, the group started its digital transformation 4 years ago by automating its forwarding activities whilst creating its own startups in new markets and verticals. Over the past 12 months, Redspher has brought together the different knowledge and expertise into one seamless end-to-end digital platform. 

Redspher serves shippers active in retail, automotive, aerospace & defense and various other industries. “The platform strength lies in the fact that each shipper can choose how to do business with us”, says Philippe Higelin, President of Redspher. Next to its traditional forwarding activity, Redspher has noticed a strong shift in the shipper’s choice towards digital forwarding as well as marketplace solutions. “The biggest difference between forwarding and a platform is the fact that today both Shippers and Carriers are our customers. Consequently in 2021 we have put major efforts in developing tools and solutions that enable carriers to do more business in a more efficient manner”, Higelin continues. This resulted in a strong platform growth for Redspher.

Exceptional disruptive year for supply chains

“In the 20 years that I’ve been active in the transport industry, I have never experienced such a big imbalance between offer & demand as in 2021”, states Higelin. Prior to 2021, the market was more balanced, and shippers were able to plan a lean supply chain process. The conditions changed rapidly last year and as a consequence, also the pain points of our shippers. The platform has successfully supported shippers in handling unexpected and/or urgent shipments, overcoming unexpected delays through our network of compliant carriers. 

Several industries were faced with a volatile demand driven by supply disruptions combined with an increasing driver shortage in Europe. This has led to a 20% growth in spot requests on the Redspher platform. Consequently, the Gross Merchandise Value increased by 25% over the last 12 months. It is showing an increase of the market price under such dynamic market circumstances. Retail and E-Commerce were instrumental in this growth benefiting from how consumer behavior has changed over the past 2 years.

In 2021, the Redspher platform facilitated 1.2 million on-demand deliveries and 75% of the offer and demand met in a digital manner.

Shippers and carriers are trying to rebuild resilient and agile supply chains through digital transformation; this resulted in a strong evolution of connecting the platform to shippers’ own ERP/TMS systems via EDIs and APIs. As a result, more than 20% of the transactions were established through an end-to-end machine to machine communication in 2021.

Go-to platform for carriers

The platform offers a large range of solutions for carriers as well. It functions as a complete Transport Management System handling compliance, quality, payroll & invoicing applications. Compliant carriers have access to all platform shipments anywhere in Europe, growing their business and eliminating empty mileage. “In the first quarter of 2022 we will continue to develop more features for carriers in order to make their work even more efficient”, explains Philippe.

Outlook for 2022 

A continuation of the Global supply chain disruption in 2022 is expected. These strongly fluctuating conditions call for rethinking the current supply chain strategies. The market will need to invest in smart digital solutions that offer real-time insights in market capacity & supply chain visibility. This is exactly the platform promise of Redspher. If desired, accompanied by 24/7 support of transportation experts which enables the market’s best customer experience.