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Boost in costs for piece goods shipping companies

Deutscher Speditions- und Logistikverband (DSLV) Foto: DSLV

Handling costs for piece goods shipments rose by 1.6 percent in 2016. Major cost factor: personnel.

09.05.2017 Matthias Rathmann

Piece goods shipping companies are struggling with rising costs. The increase in consignment-related production has risen by 1.6 percent in comparison to the previous year.
This is the result of the new cost index groupage freight forwarding agent, which the German Haulage and Logistics Association (Deutsche Speditions- und Logistikverband, DSLV) introduced on Tuesday at the transport logistic trade fair. The Steinbeis counselling center Forwarding and Logistics Center (Forlogic) compiled the cost index, which considers costs for personnel, fuel, toll and material, for the fifth time by order of the DSLV. The DSLV and Forlogic have presented the detailed survey for the first time. The calculation was made on the basis of 19 million shipments, Forlogic director Prof. Dr. Dirk Lohre said. In total, 104 warehouses out of nine networks were carefully examined for this cost development. Personnel costs were the main cost factors, which have risen by 7.3 percent in 2016. Personnel costs are the biggest cost items (50.9 percent) of piece goods shipping companies. 

Toll costs rose by 6.7 percent

A significant increase was also found in toll costs, which rose by 6.7 percent. One reason for this was the reduction of toll obligation down to 7.5 tons. But because toll costs only account for 3.1 percent of costs for a piece goods shipment, this plus in results only contributed to 0.2 percent increase of total costs. Fuel costs have risen for the first time since the elevation of the cost index, but remained comparatively moderate at 0.9 percent. Material costs, which make up 35.4 percent of a piece goods shipment‘s costs, decreased by 1.6 percent. „An explanation could be that corresponding investments have already been employed in the past,“ said Lohre. The material costs, for instance, take into account costs for insurance, IT or handling spaces. The cost index is relevant for cargo networks and also for upcoming customer negotiations. 

 „Our partners can use the index as a base for price negotiations, which makes it an important instrument,“ said Peter Baumann, managing director of cooperation 24plus. At the same time it also emphasizes the total cost increase of 1.6 percent as the minimum requirement for price increases for customers. „Regardless of the figures, it is important to understand that the price level at which we work is far too low,“ says Baumann. A large boost in costs for piece goods shipping companies is also expected in 2018, when the HGV toll will be expanded to all federal highways. 24plus managing director Baumann refers to an area toll, which will charge the regions differently. „For all piece goods organizations, this will lead to examine the cost structure precisely in the future,“ Johanna Birkan,, with cooperation VTL, confirms. „We have a cost allocation between partners and must figure out how we will take this burden into consideration with the partners.“

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