The year 2018 was a year with plenty of economic growth and tightness in the logistics market. Over the course of this year labor costs have risen. This has been a noticeable consequence due to a lack of personnel in our industry. In addition, the tariff increases of the various links in the logistics chain have not been so high in years. We will therefore have to adjust our rates to the increased cost level.
At the beginning of each quarter, we provide you with the most important developments in our industry. More specifically in regards to the tariffs for Ocean, Air and Road transport.
- Ocean freight
We see an increase in rates, but this is less substantial than previously announced. As of 01.01.2019 we have adjusted our import Asia tariffs to the new tariff level for Q1 2019 and the Peak Season Surcharge to zero. We will keep you informed of further developments concerning the tariffs for the Far East Import Trade.
Most shipping companies have increased the tariffs considerably for the North Atlantic trade routes. Loading space remains tight and the costs for wages and fuel are unchanged and remain high. We have therefore adjusted our rates accordingly for 2019.
- Air freight
Most air freight rates will only change as of 01.04.2019 when the summer season starts and the airlines come with new prices. However, for the import from Asia, the rates have risen sharply again in recent months. In order to compensate for the enormous rate fluctuations, we are working on some routes with a variable Peak Season surcharge (PSS).
- Road transport
We see a few substantial increases in road transport within Europe for 2019 This is caused by the continuing capacity problems in combination with the shortage on the labor market. A large number of carriers have informed us that the rates are adjusted by 4% to 7% and sometimes even by 8% or 9%. We have therefore adjusted our road transport rates by an average of 5%.
- Rates for handling and customs activities
In view of the wage costs development for 2019, we adjusted our rates for handling and customs activities, such as import & export declarations, in a number of cases to the increased cost level.
We will, as always, charge you the fuel surcharges (BAF, LSSC, FSC), currency risks (CAF) and security (SSC, ISPS) that are known in the meantime. Where possible, we have added surcharges to limit the number of quotation and invoicing lines.