Nedcargo Logistics is going to incorporate the rising costs associated with boom times into its rates. From 1 October, the logistics service provider is introducing a 'cyclical surcharge' to cover additional logistics costs in the short term.
In a message to its customers, the logistics provider writes that Nedcargo has been struggling with strong growth for some time. The boom is leading to rising volumes, but also has a downside: a higher diesel price, rising labour costs and an acute driver shortage are squeezing margins.
Pass on short-term costs
"This issue has been around for a long time and the situation has further worsened in recent weeks, with no prospect of a structural improvement in the short term," explained Diederik Jan Antvelink, managing director of Nedcargo. "Volumes are going to increase further towards the year end. Accommodating and handling the strong growth will involve a lot of additional costs for Nedcargo. We feel compelled to have to pass on some of these additional costs in the short term to ensure the quality of service."
Surcharge of 10 per cent
From October, Nedcargo will charge a 'conjucture surcharge' of 10 per cent on each incoming pallet. That includes the entire logistics process from processing to storage and possible shipment to the end customer. The surcharge applies to customers in the Netherlands and Belgium. From 2019, Nedcargo will incorporate the higher costs in its rates.
