Germany hikes inland transport costs

IT IS very hard to say
whether the 5% increase
in inland transport costs
in Germany for both air
and sea freight from July
14 – in response to the
latest round of fuel price
increases – will have a
significant impact on
trade with that country,
according to Pete Williams,
MD of Safcor Panalpina.
“To me, it’s very
relevant if you’re an
importer or exporter,” he
told FTW. “But whether it’s
the last straw that breaks
the camel’s back or not, I
don’t know.”
It will certainly mean
that people are going to
have to cut more from
their supply chain costs.
“And every 5% comes
out of ever-declining
margins,” Williams added.
But these cost increases
are now being imposed all
over the world, and every
one of them eventually
affects demand.
“When the demand
begins to dry up,” said
Williams, “then the supplyend
has to react to
this shrinkage.”
The way that Sarel
Pretorius, MD of Rohlig
Grindrod sees it, any
increase in costs
is significant.
“Just look at the
fuel surcharges in this
respect,” he said. “This
ever-increasing cost has
abolutely killed airfreight,
with customers flocking
ever-faster to seafreight.