Foxpost is trying to postpone the price increase with efficiency
FOXPOST will not raise prices as long as it can. According to the company, due to the rising energy prices as a result of the Iran war, the market is currently not seeing a sudden, general price increase, but a gradual cost pressure, which is primarily reflected in fuel prices. Service providers are waiting for now, but if current trends remain persistent, a correction of home delivery fees may become inevitable in the coming months.
According to Zoltán Radeczky, CEO of FOXPOST, the small package logistics sector is currently waiting, and most service providers are not making quick price decisions due to fluctuations in fuel prices and economic uncertainty.
Different pricing models operate in the sector. Some service providers automatically apply cost increases by applying a fuel surcharge, while others – including FOXPOST – work with a uniform tariff and try to offset the cost increase by improving efficiency.
“The most important task for us now is to provide stability and predictability for our partners and customers. We will not increase prices as long as possible”
– said Zoltán Radeczky.
At the same time, the company indicated that if high fuel prices become permanent, it could cause price increase pressure in the entire sector. Last mile delivery is the most expensive part of e-commerce logistics, and is therefore particularly affected by rising fuel prices. This increases the costs of courier companies and can lead to an increase in service fees over time.
It doesn’t matter where the package comes from
According to Zoltán Radeczky, the impact of the Iranian war is already being felt at several points in the supply chain, which is putting pressure on international shipping costs. Due to increasing security risks, shipping insurance is becoming more expensive, ships and planes are choosing detour routes, which causes longer shipping times and a lack of capacity. All this is further reinforced by the rise in energy prices, which directly increases shipping costs. As a result, sea and air freight rates are already rising in the short term, and surcharges are appearing in container shipping.
The price increase does not affect all players equally. Ultra-cheap, cross-border e-commerce models, such as those represented by Temu or Shein, are particularly sensitive to it. Their business model is largely based on cheap shipping, which if all this becomes more expensive, could curb impulse purchases and, with it, the volume of low-value packages.
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