Companies in transport and logistics are finding it hard to increase their rates. Meanwhile, costs continue to rise.
That is according to the business survey of Transport and Logistics Netherlands (TLN). Rising diesel prices and the tight labour market caused costs to rise in the second quarter. Half of entrepreneurs experienced an increase in costs compared to a quarter earlier. Eighty per cent of companies reported an increase in costs compared to last year.
Tariffs rise less rapidly
The prices charged by entrepreneurs for their services did not keep pace with the increase in costs. 28 per cent of companies did not raise rates last year. This is putting pressure on margins. A quarter of companies reported a decline in profits compared to a year earlier. 39 per cent reported an improvement and 36 per cent reported stable profits. Of all companies, 71 per cent closed the months of April, May and June with a profit.
Clause for flucuating diesel price
TLN director Jan Boeve advises companies to include good clauses for offsetting fuel price fluctuations in contracts. Most carriers use such a clause, but it does not take into account sudden fluctuations. A diesel clause should also take temporary fluctuations into account, Boeve said.
