With enhanced partnership for survival

Logistics is a comprehensive activity that improves economic competitiveness. Hungary’s favourable geographical location makes it a contender for exporting logistics services. At the moment, the sector’s contribution to the GDP is 6-8 percent, but if we play our cards well the European proportion of 11-13 percent can be reached. In a report by the Hungarian Logistics Cluster, president Miklós Horváth states that there is no reason to be pessimistic, but we cannot be satisfied either. It is a step forward that logistics is included in Hungary’s national strategy and the EU programmes. Zsolt Fülöp, president of the Association of Hungarian Logistics Service Centres wrote in a report that they elaborated the classification system of logistics centres. They also initiate joint procurements for members, for instance their collective energy procurement saves 20-35 percent of energy costs for members. István Horváth of Nagel Kft. opines that the market is at a standstill. Large companies are thinking twice before changing service providers and there are lots of unused capacities as well. Multinational companies demand complex services, but Hungarian ones are looking for loopholes. Mr Horváth expects stagnation for 2010 and 2011. Bálint Varga works at Gebrüder Weiss Freight Forwarding and Logistics Kft. and according to him, 2009 was a difficult year – but 2010 will be even more difficult. He is hopeful about the new government’s measures of cutting red tape. The logistics market is playing for time and the reduction of logistics fees was also a characteristic trend.

Early last year companies were facing liquidity problems and many were forced to apply extended payment deadlines. Numerous companies went bankrupt and even those commissioned fewer logistics services who managed to continue operating. According to Zsolt Bognár, managing director of Liegl & Dascher Freight Forwarding and Logistics Kft. those who use logistics services are in a worse financial situation than before the crisis, consequently they vehemently oppose any increase in fees, but at the same time the costs of logistics companies have increased recently. Since Hungary’s accession to the European Union, the number of players on the transportation market has been growing, entailing a decrease in transport fees. It is rather probable that transportation companies will be forced to raise prices sooner or later, which would affect logistics fees too. During the crisis the importance of customer relations increased. Zsolt Urbán, the managing director Pfenning Kft. informed us that transportation and logistics companies undertake even loss-making jobs to keep their partners. Imre Kovács, technical director of Szemerey Transport told our magazine that they have a fleet of 600 vehicles out of which 400 have cooling capacities. In its 20 years of existence, the company established a network with offices and depots in 10 Hungarian towns; their central warehouse is a 4,500-m² cooling facility in Budapest’s BILK.

Competition is fierce in storing technology too – which is great news for users. BITO Warehouse Technology Kft.’s managing director, Gábor Öveges told Trade magazine that one of the companies novelties was the BITO ERGO product range: a racking system, the elements of which can be combined according to customers’ needs, planned in advance using a 3D modelling software. BITO also created a system that facilitates the commissioning of goods