Transport capacities reached a seven year low

Transport Market Monitor shows declining diesel price and fierce rise in freight rates in Germany, Austria and Switzerland

Transport capacities reached a seven year low

The 32nd edition of the Transport Market Monitor, issued by Transporeon and Capgemini Consulting, shows a decline in transport capacity by 47.7 percent in the second quarter of the year 2017, compared to the first three months of this year.

Key statements of the report:

  • The capacity index fell by 41.7 percent in the second quarter of the year 2017 to 65.8 points. Compared to the second quarter of 2016, this is a decline of 25.2 percent.
  • The transport price index rose by 17.7 percent to 101.2 points in the second quarter of 2017. Compared to the same period of the previous year, the second quarter of 2016, this is an increase of 5.1 percent.
  • The diesel price index declined for the first time after one year of increase. The index is now at 77.7 points, 6.2 percent below the level of the first three months of 2017.
  • The European Trade Flow Index is expected to fall by 3.1 percent in the second quarter of 2017, but remains at a high level compared to previous years.

Ralph Schneider-Maul, Head of Supply Chain Management Capgemini Consulting in the region of Germany, Austria and Switzerland: “Transport prices are regularly rising in the second quarter. This time, however, the price increase of 18 percent was particularly strong. We will see whether the transport capacities remain so small – and ensure that the price decline observed in the third quarters of the previousy years will hold off in 2017.”

Marco-Oliver Simon, Managing Director Transporeon, adds: “In the second quarter of 2017 transport capacities reached a seven-year low. On the one hand this is due to the booming economy. Another reason for this could be the increasing lack of drivers. This development is in line with the fact that transportation prices have risen in the second quarter for the first time since 2014, despite a drop in diesel prices. On the other hand, up-to-date tools, such as web-based platforms, offer good opportunities to secure short-term capacities at a competitive price.”

The Transport Market Monitor aims to provide insights into the development of the transport market for logistics managers and other stakeholders. It is a joint initiative of Transporeon and Capgemini Consulting. The index is based on Transporeon’s logistics platform, which is used by shippers to tender their transport requirements on a daily basis and place them with their preferred transport partners. The information is collected anonymously from the platform and analysed by Capgemini Consulting. The results are monthly indices, published once every three months.