Urea Price Increase Affects UK Haulage Industry

Changes in raw material cost will massively affect thecontinuing increases in energy costs have driven up
UK's AdBlue market.the cost of production in plants across Europe.
Due to increased energy costs, the expensesSeveral leading manufacturers of the solution have
involved in urea production have soared to almoststarted to make changes already to compensate for
twice that of last year, this is now being reflected onthe increased cost of production.
to end users.With the recent change in the euro exchange rate,
For those of you who are not already familiar withBritish suppliers are even worse off than before.
the concept, AdBlue is used as a reagent to reduceNow with prices exceeding one pound per litre at the
the harmful emissions from a diesel vehicles engine.pump, the changes have hit many operators hard.
AdBlue is a trade name for AUS32, an automotiveTransport costs continue to rise and are higher than
urea solution.ever.
In order to use AUS32, the vehicle must be equippedAdmittedly, drivers and fleet owners will still benefit
with an SCR (selective catalytic reduction) unit. thefrom the savings to be made when running SCR
fluid is passed through the SCR and into the exhaust.equipped vehicles but even still it is only a matter of
AUS32 is made using Urea mixed with De-ionisedtime before haulage rates are increased which will no
water.doubt affect most markets.
Many vehicle manufacturers across Europe haveInevitably cost savings will need to be made
embraced this new technology to ensure that theirelsewhere, fortunately SCR equipped vehicles will
vehicles meet new European standards, Euro 4 andcontinue to avoid London's recent high emissions tax
Euro 5.an alternative method is exhaust gasand other European cities which are expected to
recirculation but many feel this other technology mayfollow suit (Birmingham, Paris and Milan) will also offer
not meet future requirements.some comfort to modern fleet owners.
As with many other industries, recent increases inBuying in bulk is not recommended due to the short
gas and oil prices over the past few months haveshelf life of the product.
started to affect the costs involved in producing theOne thing is for certain, transportation costs will
automotive solution.continue to rise until pollution levels reach an
Considering the primary component is Urea and theacceptable level.