Transport rates reach three year low

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Main highlights of the report

• The price index decreased by 8.1% in Q1 2013 (index 90.2), compared to the price index in Q4 2012 (index 98.2). 
• When comparing to the index level of the previous year, Q1 2012 (index 92.7), the price index decreased by 2.7%.
• In Q1 2013 the diesel index decreased to index 105.6 (-3.3%).
• Another factor with a high impact on transport prices is the capacity index, which increased by 22.5% in Q1 2013 (index 116.4), compared to Q4 2012 (index 95.0).
• The large decrease of the price index can be explained by the yearly seasonal pattern.

Dennis Wereldsma, Managing consultant Logistics within Capgemini Consulting and one of the authors of the report, said:

“The current low prices for transport create possibilities for contract renegotiation. However, a sustainable relation between shipper and carrier is more valuable over time. Saving a couple percentages on transport rates can put a carrier in such a position that service levels cannot be maintained, or even worse, creating problems that are much more costly.“

Peter Förster, Managing Director of Transporeon, added:

“As expected, the drop in transport prices was heavily influenced by the cold winter, in particular in February. This caused transport rates to decrease to a three year low in the first quarter of 2013. However, in March there were already signs of a recovering transport market when prices increased again. Due to seasonal factors, this recovery will likely continue in the second quarter 2013.“

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

– ENDS –

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

With more than 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model. Learn more about us at www.capgemini.com.

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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, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organisational change.

About Transporeon

The logistics platform TRANSPOREON connects shippers from industry & trading companies with carriers, drivers & consignees – and optimises and accelerates logistics processes by Software-as-a-Service (SaaS) solutions. TRANSPOREON allows reducing dispatch and freight costs, while minimising waiting times during loading and unloading. Currently more than 650 industry and trading companies, more than 28,000 carriers and more than 60,000 users from 70 countries are connected via the TRANSPOREON platform. The platform as well as the customer service is available in 18 languages.
www.transporeon.com