"The anguish called LNG/kg prices." This is how Günther Maters' LinkedIn post started last week. Günther owns Koeltrans Angeren, a Dutch transport company. He decided he could no longer keep mum. With a compelling post, Günther raised a problem. It has been causing him, and undoubtedly many transporters, considerable headaches for some time.
"Last year, we switched to LNG of our own accord, eventually with 37 vehicles. I had a good feeling about it. Let's be clear, I still do. When Bio-LNG is rolled out further, there will certainly be some serious discussion about CO2 reduction. But, things can't continue to go the way they are now. Current costs are so high, it truly hurts. We're all working on going green, but it also has a downside," says Günther.
This downside lies in the extreme fluctuation of alternative fuel prices. For a time, stability was the biggest reason many carriers switched. The price has now risen to above €2/kg. That is due to high global demand and limited supply. And Asian countries are willing to pay a lot more for LNG.
"We used to pay €0.80 per kg. So, it's, of course, an extreme fluctuation nobody saw coming. You make five-year investments based on facts you have at the time. We're used to diesel increases, but who expects a price to more than double? That completely nullifies our grant benefits. And the Maut (toll) waiver in Germany. Not to mention the loss Dutch independent haulers are suffering."
Günther sees no short term solution. "I think ultimately it's important to make the right deals with your customers and suppliers. Things simply have to be clear. You must share the joys and, in this case, the burdens. Being green is something you do together. Albert Heijn already compensates its transporters, for example. So they limit the damage together. Anyone who hasn't arranged this properly with their clients will feel the pinch."
For 2022, Koeltrans Angeren has again invested in 30 LNGs for its fleet. Günther does not yet know if they will continue with this. "We're in talks with our supplier to see what can be done. In the end, they also have a vested interest. Transporters must continue believing in LNG. There's been a huge investment in it. But who knows when prices will return to acceptable levels? Surely we have to get rid of this kind of extreme fluctuation. That's if we want to move forward as a sector in this," he concludes.
For more information:
Günther Maters
Koeltrans Angeren
Tel: +31 (0) 263 252 407
Email: gunther@koeltrans.nl
Website: www.koeltrans.nl