Rising fuel prices untenable for German transport companies, logistics lobby says

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Containers are transported to loading terminals in the port in Hamburg, Germany March 11, 2020. REUTERS/Fabian Bimmer

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BERLIN, Oct 21 (Reuters) - Rising energy prices are leaving German transport companies at risk of collapse, the country's logistics association BGL said on Thursday, and it called on government to step in with support for the sector.

The price of fuel has risen by around 58% so far this year, the Federal Association for Transport, Logistics and Waste Management said, and companies with low profit margins were struggling to swallow the cost.

"Due to low profit margins in road freight transport, transport companies that do not manage to pass on the cost increases risk their existence," BGL boss Dirk Engelhardt said, urging governments to intervene with supportive measures like tax relief for transport firms.

Germany's caretaker government said on Wednesday it would not take steps to ease the burden of rising energy prices as supplies are secured for the time being, adding that it was up to the next government following the Sept. 26 national election to examine possible measures.

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Reporting by Victoria Waldersee Editing by Mark Heinrich

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