New, significantly increased fines for trucking violations in Russia, effective since July 18th, are causing disruptions in the bulk construction materials transportation market. The fines, targeting overloaded vehicles and violations of weight and dimension control regulations, have led to protests and concerns about increased costs in the construction industry.

Truck owners in St. Petersburg, representing a substantial portion of the market, have initiated a slowdown, adhering strictly to transportation rules. This means instead of transporting full loads, drivers are making multiple trips with partial loads, which in turn increases transportation costs.

The catalyst for this market shift is the implementation of amendments to the Code of Administrative Offenses of the Russian Federation. These amendments, which came into force on July 18th, introduce a hefty fine of 600,000 rubles for vehicle owners who refuse to undergo weight and dimension control or violate the rules during the process. This includes actions like intentionally mispositioning vehicles on scales to distort the results. Moreover, the fine for refusing to stop at the request of an authorized official has been raised substantially to 10,000 rubles.

Industry experts highlight that the previous system, which allowed drivers to pay minimal fines for double overloads, was unsustainable and detrimental to road infrastructure. Vladimir Matyagin, head of the “Gruzavtotrans” association, stated that the previous fines were a minor risk, and the new penalties now pose a significant financial threat to carriers.

Some carriers continue to operate as before, taking on excessive loads and using documentation practices to obscure their violations. However, the delayed arrival of fines presents a challenge, with carriers resorting to tactics to evade weight control points.

Carriers are requesting authorities to enforce regulations across the board, encompassing quarry owners and builders. They argue that without a level playing field, law-abiding carriers will continue to lose business to those who flout the rules.

These changes are expected to significantly impact the cost of concrete production. According to market participants, the price increase could be substantial, impacting both residential and road construction projects, including those with fixed project financing and state orders.

The freight industry faces low prices that have been stagnant since 2010. Experts say that fuel prices, salaries, and equipment leasing costs have risen, making it nearly impossible to operate profitably without violating weight restrictions and driver working hour regulations. The current market dynamics create a situation where those who comply with the law are at a competitive disadvantage.