The thirty-sixth edition of the Transport Market Monitor (TMM) magazine indicates that high transport prices are the result of decreasing transport capacity and rising fuel costs.
The Transport Market Monitor is a quarterly report prepared by Transporeon and Capgemini Consulting. Its purpose is to present the dynamics of the transport market in Europe.
Key points of the latest edition of the report:
• In Q2 2018, the transport capacity index reached 70.1, a decrease of 36.3% compared to the previous quarter of this year (110.1). The transport capacity index in Q2 2017 was 65.8, which means that in the corresponding period of the current year, its value is 6.6% higher.
• The price index in Q2 2018 was 107.9, representing an increase of 17.2% compared to the previous quarter of this year (92.1). Compared to data from Q2 2017, the price index in the corresponding period of 2018 increased by 6.6%.
• Compared to the previous quarter of this year, the diesel price index increased by 9.3%.
• It is predicted that in Q2 2018, the European trade flow index will reach a value of 2060 billion EUR, which indicates a decrease of 11.6 percent compared to Q1 2018 (2330 billion EUR).
– Our predictions regarding transport costs have proven correct. In Q2 2018, transport prices reached the record level of Q4 2017. Importantly, transport costs will continue to rise and will likely set a new record in the second half of this year. This is directly influenced by constantly rising fuel and driver wage costs, as well as an increase in demand for transport across all industries. The future will show whether the situation will be improved by the cabotage regulations relaxed by the European Union – said Lars Vitters, Supply Chain Manager at Capgemini.
– Available transport capacity is hovering around a historically low level, which is driving up transport prices. Current research by Transporeon shows that the biggest challenges facing shippers in 2018 are the driver shortage and the lack of available cargo space. Consequently, two-thirds of transport companies see the development of digital processes as an opportunity to acquire customers who will enable the consolidation of loads and the reduction of “empty kilometers”. Furthermore, effective cooperation between shippers and more efficient use of cargo space in trucks could contribute to increasing transport capacity – claims Oliver Kahrs, Director of Business Development at Transporeon.
More information about the Transport Market Monitor can be found at www.transportmarketmonitor.com