Price index reaches 8 year low while diesel index growth continues

Utrecht – The thirty-first edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals that transport prices decreased by 9.0% in Q1 2017 compared to Q4 2016.

Main highlights of the report:

• The price index decreased by 9.0% in Q1 2017 (index 86.0). When comparing to the index level of the previous year, Q1 2016, we see that the price index decreased by 6.0%.
• The capacity index increase to an index level of 112.8 (+20.4%) in Q1 2017. Compared to Q1 2016, the capacity index is 1.8% higher.
• The diesel index displayed growth for the fourth quarter in a row, now to an index of 82.8. This index is 10.0% higher than Q4 2016.
• The diesel index displayed growth for the fourth quarter in a row, now to an index of 82.8. This index is 10.0% higher than Q4 2016. The European Trade Flow Index is expected to drop by 1.5% in Q1 2017, but remains on a high level compared to the previous years.

Erik van Dort, Supply Chain Director at Capgemini, notes: “Road carriers had a very bad first quarter in 2017. The prices they made on the market were exceptionally low. The realized transport price was barely higher than the one achieved at the midst of the economic crisis in Q1 2009, and given the fact that the diesel index is currently close to 40% higher than in Q1 2009, effectively the price the carriers made was worse.”

Peter Förster, Managing Director of Transporeon, added: “Although fuel is becoming increasingly expensive, transport prices continued to fall in the first few months of the year. That gives an indication of the intense competitive pressure in the industry, given that capacity was less than fully utilized at the beginning of the year. However, persistently low transport prices may also be a sign of growing efficiency in the transport sector as a result of the use of modern technologies and cloud-based solutions, for example. ”

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 analyzed 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 organization of the Capgemini Group, specializing 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 3,000 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 organizational change.

Learn more about us at www.capgemini-consulting.com or @CapgeminiConsul

About Transporeon

The logistics platform TRANSPOREON connects shippers from industry & trading companies with carriers, drivers & consignees – and optimizes and accelerates logistics processes by Software-as-a-Service (SaaS) solutions. TRANSPOREON allows reducing dispatch and freight costs, while minimizing waiting times during loading and unloading. Currently more than 1,000 industry and trading companies, more than 55,000 carriers and more than 150,000 users from 100 countries are connected via the TRANSPOREON platform. The platform as well as the customer service is available in 25 languages.

Learn more about us at www.transporeon.com.