Tuesday 25th Oct 2016 - Logistics Manager

Transport rates fall in first quarter

Transport prices dropped by 5.6 per cent between the last quarter of 2010 and the first quarter of 2011 despite a rise in fuel costs, according to the seventh edition of the Transport Market Monitor by Capgemini Consulting and Transporeon.

However, it said transport prices are likely to increase during 2011.

The report blame seasonal effects for the fall – notably lower demand for transport in the first quarter and the subsequent effect of increased capacity on transport prices.

However, it said, increasing demand for transport during the next quarters was likely to lead to rising prices will increase during 2011. “Compared with the price level of the previous year, Q1 2010, the price index increased by 8.4 per cent.”

Erwin den Exter, principal consultant at Capgemini Consulting, said: “Due to the recent developments in the market, we see an increasing awareness among shippers for upcoming changes in transport costs, especially in the industries where cost increases have a direct impact on EBIT results.

“Further close monitoring is required to prevent any unexpected impact on company results”.

The report found that the diesel index increased by 5.6 per cent in Q1 2011, compared to Q4 2010.

The capacity index increased by 36.3 per cent in Q1 2011 (index 101.6), compared to Q4 2010 (index 74.5).

Peter Förster, managing director of Transporeon, said: “The first quarter of 2011 clearly shows that prices on the market fluctuate, despite constantly rising costs.

“This is mainly driven by the changes in available capacity which proves to be one of the main influencing factors for transport prices. Shippers can benefit by looking for solutions that leverage these dynamics”.