Utrecht, August 21st, 2018 – The thirty-sixth edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals high transport prices due to declining transport capacities and rising fuel costs.
Main highlights of the report:
- In Q2 2018, the capacity index decreased by 36.3% to 70.1 compared to the previous quarter (index 110.1). In Q2 2017 the capacity index was 65.8, which means the index value for Q2 2018 is 6.6% higher than in 2017.
- The price index increased in Q2 2018 to an index of 107.9, which is an increase 17.2% compared to Q1 2018 (index 92.1). Compared to the price index of Q2 2017, the price index increased by 6.6%.
- The diesel index showed an increase of 9.3% compared to Q1 2018.
- In Q2 2018 trade volumes in Europe are expected to decrease by 11.6% to €2060 billion compared to Q1 2018 (€2330 billion).
Lars Vitters, Supply Chain Manager at Capgemini Consulting, notes: “Our prediction on transportation costs became a reality. In the second quarter transportation costs reached the record of Q4, 2017. More importantly, the transportation costs could further rise to a new record high in the second half of this year. This is a direct result of continuously rising fuel and driver costs while at the same time transport demand increases across all industries. Moving forward it will be interesting to see if there will be any impact on transport capacity now the European Union has relaxed cabotage regulation.”
Oliver Kahrs, Director, Business Development at Transporeon, adds: “The available transport capacity fluctuates around a historically low level, which pushes transport prices upwards. A current survey by Transporeon shows that the driver shortage and shortages in free load space are the greatest challenges for freight forwarders in 2018. In this context, two thirds of the transport service providers see the expansion of digital processes as an opportunity to win customers for connected loads and reduce empty kilometres. Indeed, a large part of the missing capacities could be gained by a more efficient networking of the shippers and a higher load factor of the trucks in use.”
More details can be found in the Transport Market Monitor on http://www.transportmarketmonitor.com.
The Transport Market Monitor by Transporeon and Capgemini Consulting is a quarterly publication that aims to track transport market dynamics.
The aim of the Transport Market Monitor is to provide insights in the development of transport prices, and other transport market dynamics to logistics executives and other interest groups. It is a joint initiative from TRANSPOREON and Capgemini Consulting. The Index is based on the logistics platform TRANSPOREON on which shippers tender and process their transport needs to their preferred transport partners on a daily basis. Anonymously, information is unlocked from the platform and analysed by Capgemini Consulting. This results in monthly Indices which are published on a quarterly basis.
About Capgemini Consulting
Capgemini Consulting is the global strategy and transformation consulting organisation of the Capgemini Group, specialising in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, the global team of 3,500 talented individuals work with leading companies and governments to master Digital Transformation, drawing on their understanding of the digital economy and leadership in business transformation and organisational change.
Find out more at: https://www.capgemini.com/consulting/
Transporeon is the cloud-based logistics platform that enables a worldwide collaborative network of logistics professionals. This global platform for intelligent transport logistics creates a digital connection between shippers and carriers, achieving smarter, transparent and more cost-effective movement of goods around the world. By digitising the entire logistics supply chain, it also enables real communication and collaboration across the worldwide shipper-carrier community.
The company links a global network of more than 1,000 shippers (manufacturers, suppliers, and retailers), 65,000 carriers (logistics and transportation service providers, 3PLs, freight forwarders, and brokers), and more than 100,000 users in over 100 countries through a range of software-as-a-service solutions currently available in 24 language versions.
Unique in the market, Transporeon Group solutions include onboarding, consultancy, and lifetime support with multilingual customer support. This ensures a customised fit for each organisation, boosting shipper/carrier performance and cutting costs while optimising carrier margins and lowering CO2 emissions. Transporeon services are ISO-27001 certified, and the group has global presence with offices across Europe, Russia, Asia, and the USA.
Learn more about us at www.transporeon.com.