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.