Russian transport & logistics news update May 2020

May’s monthly news update from Russia’s transport & logistics industry.

This month sees:

• Domestic drop in trucking volumes
• Forecast rise in post-lockdown logistics salaries
• KAMAZ to begin building new truck models in August

Russian transport & logistics market round up

Post-lockdown logistics salaries predicted to rise

A survey of Russian companies conducted by the TASS news agency reveals logistics as one sector forecast to see post-lockdown salary rises.

Felix Kugel, MD of UNITY HR Company, says online shopping has become the new normal for Russian consumers. After lockdown is lifted, they are unlikely to change their habits.

Retailers will be forced to ensure end-to-end supply chain robustness to satiate e-shoppers’ needs.

“It is important for retailers to establish different supply chains from the warehouse to the post office, from the store to the buyer, etc.,” Felix said. “Demand and, accordingly, salaries will gradually grow among logistics specialists at all levels: from warehouse workers who process orders to coordinating managers.”

Felix Kugel also noted salaries for couriers during the current pandemic increased by 20%. In his opinion, courier services will also remain in demand when the world. Recall that in March, most of the demand from employers grew specifically for courier and driver vacancies.

KAMAZ will start building Euro-6 standard trucks in August 2020

Sergey Kogogin, KAMAZ CEO, has stated his firm will complete certification and begin construction of Euro-6 rated trucks in August 2020.

Euro-6 is the current emissions standard lorries and vehicles must meet in order to operate in the EU.

KAMAZ has developed the P6 engine for installation in Euro-6 standardised vehicles.

“Within the framework of our Special Investment Contract, investments being made to bring the P6 engine to Euro-6 level, and the company intends to fulfil these obligations in full,” KAMAZ said in a statement. 

According to the business plan for 2020, KAMAZ expects to sell 29,000 trucks on the Russian market and 6,700 thousand abroad. With these goals, the automaker plans to occupy a 46 percent share in the truck market in the Russian Federation. 

The company has not yet reported about the adjustment of plans in connection with the crisis due to the coronavirus pandemic.

KAMAZ is the largest Russian manufacturer of trucks and is one of the twenty leading world manufacturers.

Domestic trucking volumes fall 30%

The volume of goods moved by road transport in Russia has fallen 30% thanks to the current pandemic affecting global trade.

The news was announced by Director General of the Association of International Road Carriers (ASMAP) Andrei Kurushin at a meeting on the development of transport in the country, which was held by President Putin.

The volume of road-transported goods internationally has fallen 20%.

“Under the restrictions that exist today, the volume of cargo transportation both in international traffic and in domestic, regional traffic has fallen,” Andrei said. “Today, the decline in international traffic amounts to about 20%. Towards China, the drop has exceeded 40% from last year.

“According to the estimates of the Russian Transport Union, the drop in the volume of traffic in inter-regional communication, intra-Russian, amounted to about 30%.”

Regarding state support for the haulage sector industry, Andrei has proposed abolishing the transport tax or reducing its size.

“There is no transport tax in Belarus, and in Kazakhstan, These countries’ carriers are the main competitors for Russia in the European and Asian transport services market in Europe and Asia, ” he said.

In addition, the association advocated the suspension of the Platon toll system, utilisation fee exemption for heavy trucks of the Euro-6 environmental class and partial subsidizing of lease payments for vehicles.