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Price increase at Emons accompanied by quality increase

10.10.2006 - According to the updated VerkehrsRundschau price index, a rise in transport prices in Germany´s road-bound traffic must be assumed. Thus, 57% of the 120 polled logistics-service providers and shippers are reckoning with a price increase in coming months. Today already, price rises can be noted in the part-load segment, followed by the pallet and full-load business fields.

Emons Spedition, too, cannot avoid such market and price developments and raised its hitherto stable transport prices by 4.8% as per 18 September 2006. However, the price increase at Emons comes with a simultaneous rise in quality. Crucial for the positive quality development is Emons´ dynamic system of quality control, which is continuously adjusted, pursuant to the benchmarking of the logistics-controlling ratios, both to our own needs and to those of our customers. This positive development has also been confirmed by certification and audit pursuant to DIN EN ISO 9001:2000, DIN EN ISO 14001:2004 and SQAS, carried out in August 2006.

The stable prices in a once regulated traffic market have given way to strongly dynamic rates due, among other things, to the liberalization of the market. The high number of insolvencies in the sector, caused in part by toll-related factors, and a reviving business cycle have led to scarcer and more expensive loading space and, hence, to price increases.

Moreover, the historically high diesel-price level is placing a huge cost burden on the industry. With the diesel-price situation expected to worsen in the coming years, cost pressures will continue to increase. Sector pundits, according to a DVZ report, are assuming that mineral diesel fuel will go up by a further 5% in 2007.

With enormous cost strains and a low average percentage return on sales in the sector, a need for fresh price negotiations has emerged for the majority of Germany´s transport companies, reported the Federal Association of Road Haulage, Logistics and Disposal (BGL) as early as 24 April 2006. The reasons given were the upcoming hike in value-added tax and the associated compulsory admixture ratio for mineral diesel to include 4.4% biofuel, which will come into force from 2007 on, and additional taxation on biodiesel applicable as per 2007.

About Emons

Ever since the Company was set up in 1928, the name Emons has stood for dependable and flexible transport and logistics services. A medium-sized and group-independent family-run business with over 1,600 employees and 39 branch establishments in Germany, Italy, Poland, the Czech Republic, Switzerland, Russia, Belarus and Ukraine, Emons is one of the established companies in the sector.

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Ali Aktug
- Marketing & PR -
Emons Spedition GmbH
Poll-Vingster Strasse 107a
D-51105 Cologne

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