Transport Management

Transport Management and Technology, Distribution Management, Freight, Vehicle Routing & Scheduling Software and Load Planning.

Small capacity increase does not result in a decline of the record high price index

20-Feb-2018
Small capacity increase does not result in a decline of the record high price index
The thirty-fourth edition of the Transport Market Monitor by Capgemini Consulting and Transporeon assesses European transport and haulage dynamics

Utrecht, February 20th, 2018 - The thirty-fourth edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals that a small capacity increase does not result in a decline of the record high price index.

Main highlights of the report:
  • In Q4 2017, the capacity index increased by 6.4% to 71.8 compared to the previous quarter. Compared to Q4 2016 the index value of Q4 2017 is 23.3% lower. 
  • The price index increased in Q4 2017 to an index of 107.9, an increase of almost 6% compared to Q3 2017 (index 101.8). Compared to the price index of Q4 2016, the price index increased by 14%. 
  • From Q3 to Q4 the diesel index increased by 10% to an index value of 82.7. The European Trade Flow Index is expected to drop by 0.8% in Q4 2017. 

Erik van Dort, Supply Chain Director at Capgemini, notes: “Transport companies managed to get good prices for their services in 2017, but Q4 is really unique. In the eleven years that we’ve tracked transport prices we never recorded such high prices! Q3 was already close to a record for historic Q3’s with only Q3 2008 higher, but Q4 is breaking records compared to any previous quarter. Although Q1 is always a slow quarter, it will be interesting to see whether the drivers’ shortage translates in higher prices than normal in Q1”.

Oliver Kahrs, Director Business Development at Transporeon, added: “The available transport capacity increased by 6 % in Q4 2017, but declined by almost a quarter compared with the previous year. Capacity has been below average since Q2 2017. This illustrates how persistent the problem is. The shortages cannot be resolved in the short term and could develop into a lasting trend. An intelligent strategy mix in their transport execution is becoming increasingly important for shippers”.

More details can be found in the Transport Market Monitor on www.transportmarketmonitor.com.

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