Demand for transport is growing while costs keep rising: Nagel-Group adjusts its prices
Versmold. 28/06/2021. Demand for transport capacity is growing disproportionately to availability of cargo space, while the gradual reopening of restaurants and hotels is making itself clearly felt in terms of food logistics. At the same time, raw material, energy, and fuel prices continue to rise. Logistics company Nagel-Group is facing a challenging third quarter of 2021 – with rising logistics and transport prices.
“We have to respond to the radically changing market conditions and adjust our prices accordingly,” says Carsten Taucke, CEO of Nagel-Group. He cites a specific example: “Wood is extremely scarce in Germany. As a result, the price of wood has doubled since the beginning of the year. This is reflected in the price of loading equipment such as pallets – whether for replacement or repair.” Transport distances needed to procure wood are also increasing, which in turn adds to costs. Pallet exchange as a service is directly affected by these cost increases.
At the same time, demand for transport capacity is increasing, as CEO Taucke is only too aware: “Order volumes have soared in the past few weeks. This affects all sectors. In food logistics, we see it spanning all temperature zones.” As the catering industry continues to open up, they call for very large quantities even after the initial stocking, with volume take-offs in the food retail sector also at a very high level.
These demand peaks are showing no sign of easing off either. If concerts, trade fairs and other events gradually come to be allowed again in the coming weeks – on top of the upcoming holiday season – demand for food will increase by leaps and bounds here too. “This is all happening against a backdrop of rising staff and contractor costs. Transport prices are currently skyrocketing, not least because of the shortage of drivers,” says Carsten Taucke. The Nagel-Group boss adds: “This is something we will need to discuss with our customers.”
About Nagel-Group
Nagel-Group, which specialises in food logistics, operates throughout Europe and has its headquarters in Versmold. It employs over 13,000 people in more than 130 locations. Recently the company reported a turnover of 2.1 billion euros. The company group moves food consignments of all sizes and in all temperature ranges on a daily basis. Whether frozen products, meat, dairy products, coffee or sweets, whether on instructions by manufacturers or retailers, Nagel-Group daily provides consumers all over Europe at the point of sale with the right goods in the right quality at the right time. Nagel-Group, therefore, plays a significant part in its customers’ success.
