Expected increases for local costs in 2023
28 November 2022
You are being bombarded by messages about the current price inflation and the expected increases. It is true that prices will rise significantly, including all transport-related costs. Of course, price inflation plays a major role in this. But there are plenty more ongoing developments that are causing costs to rise. What increases should you bear in mind for 2023?
Upheaval and rumours
There is upheaval, without question. Annoying, but unfortunately the rumours about increases are not unfounded. Prices will also rise sharply for transport-related costs too. Price inflation certainly plays a major role in this. But that’s not the end of it. Many things are afoot that have a direct impact on cost increases.
For instance, the war between Ukraine and Russia, the ongoing energy crisis, and staff and equipment shortages in the transport sector are difficult circumstances that we need to take into account. It is no wonder that the Collective Labour Agreement negotiations took much longer this time than previous years. In addition, the increase in congestion pressure and congestion problems in every sector and area in both the Port of Rotterdam and Schiphol, also have a major impact on the current market.
Impact on local costs in 2023
All this will affect costs for road transport, air cargo handling, processing costs at terminals, and handling in warehouses, among others. What’s more, the first container terminal – Rotterdam World Gateway (RWG) – has announced that they will implement a peak surcharge for carriers.
This surcharge of €15 exclusive of VAT is charged to carriers wishing to book a time slot between six o’clock in the morning and six o’clock in the evening. The RWG wants to use this to make better use of available capacity during a time slot. In addition, it is hoped that tackling congestion in this way will improve traffic flow at the terminal. At present, it is not clear whether more container terminals will follow suit.
What does this mean for you?
Unfortunately, we are also forced to pass on the price increases for 2023 to ensure our service provision remains at the same high level you have come to expect from us. Percentages that have come to our notice recently are between 10% to 15%.
2023 will be a challenging year, for you as well as for us. But we are convinced that as long as we keep the dialogue going, we will get through this period together. We hope to share our final proposal with you in December. If you have any further questions, please do not hesitate to contact us. Even in times like these we do not shy away from conversation.
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