Logistics companies raising prices as costs soar

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The largest Hungarian transportation companies are raising their service fees, following the lead of logistics companies in other European countries which have already increased their prices, business daily Világgazdaság reported.

Both Rail Cargo Hungaria (RCH) and Waberer’s International have increased their prices, invoking increased costs, according to Világgazdaság. Drivers’ wages, truck maintenance costs and higher insurance prices are making logistics fees more expensive, Waberer’s CEO Ferenc Lajkó told the paper. Rail transport has been hit even harder, as railroad construction has increased costs by 20-30%, RCH CEO Imre Kovács added.

RCH is also confronted with a shortage of skilled labor, while Waberer’s has contained this problem by introducing attractive employee packages and driver-friendly technologies, which nevertheless also require significant investments.

At the same time, while there are ongoing state schemes for training 6,000 truck drivers, there are no state subsidies for training locomotive operators. Despite this, Lajkó told Világgazdaság the future belongs to railroad transport and logistics companies need to prepare for this.

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