MLSZKSZ: they cannot keep the annual service fees in the logistics sector

By: Trademagazin Date: 2022. 08. 30. 07:29

Logistics service providers are no longer able to extract the costs of the multiplying price of energy, the soaring inflation, and the wages that are increasing from month to month. Price pressure can only be mitigated by sharing the burden of additional expenses and by raising service fees.

The price increase became necessary

The Association of Hungarian Logistics Service Centers (MLSZKSZ) therefore recommends to logistics operators that, in order to maintain service security, they settle the excess energy costs with their customers month by month – similar to the settlement of fuels that has been in place for years. Energy prices, which have risen to previously unimaginable peaks, account for an increasingly significant part of the total cost, in the case of a refrigerated warehouse, for example, energy consumption accounts for about a quarter of the expenses. Based on the forecasts and the energy procurement negotiations for 2023, we must prepare for further significant price increases and an unpredictable market situation.

The changed global economic situation also has serious consequences in logistics, inflation already exceeding ten percent increases costs and makes it essential to raise wages in the middle of the year – even several times – while service providers have signed annual or multi-year contracts with their partners, so they should manage the additional costs themselves .

The multiplying price of energy also puts the sector in an increasingly serious situation. Already in the last quarter of 2021, the price of electricity and gas jumped, on average two to four times, the Russian-Ukrainian war and sanctions further increased these prices. In the case of gas, this year’s August price level is already more than four times last year’s annual average, and almost double that calculated for this year. It is typical of the current situation that those who accepted it in 2021 and signed a multi-year energy contract at double the previous price did well.

MLSZKSZ