German-based trans-o-flex Logistics Group is raising its prices this year by around 5.5 per centdue to increased personnel costs, toll charges for main roads, insurance premiums and energy costs.
The company explained that improving efficiency alone can no longer offset cost increases. “The key cost drivers for trans-o-flex, as well as in the transport and logistics sector as a whole,are the considerably higher personnel costs which will continue to rise further in 2013,exacerbated by the shortage of drivers and qualified staff,” Oliver Rupps, spokesman for theManagement Board of the trans-o-flex Logistics Group, explained.
In addition, there are numerous apparently minor cost rises, which altogether result in asubstantial increase in production costs. “Some examples are the dramatic increases in insurancepremiums, particularly for vehicles, rising energy costs and new, additional costs such as theintroduction of toll charges for main roads,” he added.
Rupps stressed that due to the extent of the increased costs, it was no longer possible tooffset these fully through improving efficiency. “We have increased quality and efficiencyconsiderably in recent years. This quality has a price. And not least, we want to and must workprofitably so that our investments in the further network development in line with demand will payoff.”
Other German express and parcel operators, including DHL Express, DPD, GLS and GO!, have alsoannounced price increases for 2013 due to higher operating costs.
The trans-o-flex Logistics Group, which has been a 100 per cent subsidiary of Austrian Postsince 2008, employs around 1,600 staff with annual turnover amounting to €550 million in 2011.
