← Blog
FX margin erosion: revenue in EUR, costs in TRY
A typical contract on the TR–EU corridor: revenue in EUR, costs mostly in TRY (fuel, driver, maintenance), some in EUR (tolls, ferry). When the rate moves, margin erodes silently.
Industry case: A 10% annual EUR/TRY move drops margin by 2–4%. For a €5M revenue 100-truck fleet that’s a €100K–€200K impact.
Why it’s invisible
Three reasons:
- Monthly reports show aggregates. The FX effect appears as a generic cost increase.
- Ops centre doesn’t track the rate. TMS trip plans are rate-blind; the CFO only sees it at month-end.
- No FX clause in contracts. Fixed annual price = fleet risk.
Trip + rate tracking
Lognari computes the actual FX cost per trip:
| Trip | Revenue (€) | TRY cost × rate | EUR cost | Net margin (real) |
|---|---|---|---|---|
| #5821 | 4,800 | 96,000 ₺ / 37.2 = 2,580 | 1,420 | €800 (16.7%) |
| #5823 | 4,800 | 96,000 ₺ / 38.8 = 2,474 | 1,420 | €906 (18.9%) |
Monthly FX report: cumulative rate effect, hedge recommendation, contract-renegotiation opportunity.
Impact by fleet size
| Fleet | Annual FX risk | Hedge savings | Contract-design effect |
|---|---|---|---|
| 100 trucks | €100K–€200K | €60K–€120K | +2% margin |
| 300 trucks | €300K–€600K | €180K–€360K | +2.5% margin |
| 1,000 trucks | €1M–€2M | €600K–€1.2M | +3% margin |
What’s next
If your fleet earns in EUR/USD and spends in TRY without hedging, the rate is eating your margin directly. A 30-day pilot delivers a concrete hedge strategy.
Reach out via the contact section — reply within one business day.
