The European food logistics leader will significantly raise the price of services next year. This is a reaction to the growing lack of drivers and the increase in costs associated with transport activities.
The Nagel Group decided to raise the price of services by an average of 6 percent next year. The reason for the increase is the more and more severe lack of truck drivers, as well as infrastructure constraints contributing to traffic jams and extended waiting times during unloading and loading on the ramps. All these factors have a significant impact on transport costs, which means that it is also necessary to raise prices.
The deteriorating market situation can no longer be offset only by our efficiency improvement programs, but must also be transferred to the market,” explains Björn Schniederkötter, managing director of the Nagel Group.
Increases are a necessity not only in Germany
This is the opinion of the head of another large logistic company, Ferenc Lajkó. According to the president of the Hungarian company Waberer’s, changes in the prices of transport services are necessary.
You can not manage increased costs effectively without immediately thinking about rising prices. Those who do not dare to raise prices will be ruined. The current situation indicates a change in the industry, and the pressure on profits will accelerate,” said Lajkó.
Some have already raised prices
On price increases in February this year an international courier company GO! Express & Logistics.
In the absence of personnel and a simultaneous increase in the volume of freight and transport costs – the company decided to raise rates by an average of 4.2 percent.
Hermes Germany – courier giant also increased the price of services by 4.5 percent from March 1 this year. The company adds to the price of the shipment an additional fee in the pre-holiday season. The decision on increases was made with a view to investing in employees.
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