Next year, German customers of the Nagel Group will have to dig deeper into their wallets. The operator explains the increase by rising costs.
From January 2020, Nagel Group will increase prices for customers in Germany by 4 to 5%. The food logistics company admits that the services of Nagel Transthermos in the area of distribution and storage of deep-frozen products will require an even greater increase.
The reasons for the price increases are significantly higher costs, driven by increasing shortages of drivers and skilled workers, poor road infrastructure and traffic jams, as well as long waiting times at ramps. As further reasons for the increase, the company cites rising energy prices and higher costs for providing a sustainable fleet of vehicles.
This is how the company motivated this year’s increases. Prices of services provided by Nagel Group at the beginning of this year increased by approx. 6%.
Costs are rising, and so are prices.
In Germany, the groupage transport costs (as per DSLV index) increased in the first months of this year by 6.3% compared to the first half of 2018. The Dutch transport sector is also following a similar trend. The local industry organisation is calling on carriers to adjust their prices to the rising costs.
Nagel Group is another proof that transport and logistics prices should take into account rising costs, all the more so because the transport industry operates on low margins.
Photo: Lav Ulv/ Flickr