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Rising Operational Costs a Huge Challenge for the TSL Industry in Poland

TSLRising Operational Costs a Huge Challenge for the TSL Industry in Poland

Fuel prices, inflation, higher leasing costs, an increase in the minimum wage and overall labor costs, and economic stagnation are the main reasons for rising costs in the TSL (Transport, Shipping, and Logistics) industry. “The transport and logistics sector is under increasing pressure. There is a lack of systemic solutions, so more and more companies are wondering how to cope with the crisis that has been ongoing since last year,” says Dariusz Brzeziński, Managing Director of BPO Meritoros SA.

The TSL industry must brace for further cost increases, not only due to rising wages resulting from the minimum wage hike and generally rapidly increasing salaries in the Polish economy. Transport companies have had to adapt to new regulations from the Mobility Package. They need to implement a conscious strategy to maintain their market competitiveness. According to the latest report “Inelo Industry Barometer. Inflation – a Time of Challenges for the TSL Industry,” conducted by Inelo Group together with the Polish Road Transport Institute, over 98% of surveyed transport companies have reported an increase in their operating costs.

“Rising costs in the TSL industry are a fact and can be seen in every aspect. On one hand, employment and employee maintenance costs are rising due to wage increases, which also lead to higher social contributions and benefits costs. On the other hand, we have rising vehicle maintenance costs, warehouse costs, and energy, materials, rental, repair, and depreciation costs,” lists Joanna Porath, owner of the customs agency AC Porath.

Increasing Competition

Recently, the TSL industry has also been hit by the toll increase in Germany and the implementation of EU regulations. Fees for using highways and federal roads by trucks have increased by over 80%, negatively impacting the financial situation of many transport companies. The industry must continuously adapt to regulations from the EU Mobility Package.

“There is no expectation that costs will start to decline in the near future. Polish companies are still a powerhouse in road transport, with a market share of about 30% in Europe. However, it is becoming increasingly difficult, especially in the face of rising costs, to compete with foreign giants and companies from Lithuania, Romania, Bulgaria, or Ukraine, which have lower labor costs. We are no longer a cost-competitive country, so cost optimization is essential,” says Dariusz Brzeziński, Managing Director of BPO Meritoros SA.

Polish TSL companies should adopt a strategy that gives them the best chance of surviving the crisis.

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