The impact of the kilometre charge on the logistics costs in the FMCG and retail sectors in Belgium

The Retail Academy and PwC have analysed the impact of the kilometre charge in the retail sector in Belgium.

 

The food and non-food producers of consumer goods with a low unit price will (besides the logistics sector) be most affected by the kilometre toll or charge (i.e. the distance-based motorway user charge applicable to trucks weighing more than 3.5 tonnes; kilometerheffing/prélèvement kilométrique). 

In the supply chain (from raw material to end consumption), this charge mainly has an impact on the transport between the producer and the retailer and between the retailer and the point of sale (the store). If all concerned players would charge on this cost, shelve prices are estimated to increase by between 0.3 and 1.2%. This would cause a Belgian household in 2016 to spend e.g. close to EUR 15 more on fresh food. 

This percentage highly depends on the logistics flow of each individual business (a highly determining factor is the question whether the goods are produced in Belgium or abroad, and whether it concerns fresh food that needs to be supplied several times a week or dry food/non-food that requires less transport). 

 

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