European transport prices increase

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Transport prices in Europe are now 1.2 per cent up on last year, according to the Transport Market Monitor for the second quarter of 2013 compiled by Capgemini and Transporeon.

And compared to the first quarter of 2013, the index is up 11.5 per cent (at 100.6), reflecting the seasonal movements.

In April, prices increased by 4.6 per cent (index 97.0). In May rates increased even stronger to index 103.7 (+6.9 per cent). In June the price index cooled off slightly, to a level of 100.6 (-2.9 per cent).

In the third quarter we expect a limited price increase, based on the seasonal pattern observed in previous years.
Both market dynamics and lasting economic uncertainties emphasize the need to monitor transport price developments very closely, to mitigate the risk of any unexpected negative impact on company results.

“It looks like optimism is back in the transport market, said Dennis Wereldsma, managing consultant logistics within Capgemini Consulting, and one of the authors of the report.

“However, we also observe much more volatility in transport rates, which could be the result of more frequent price negotiations and shorter contract terms.

“Shippers don’t have to lock in a long-term rate when they are uncertain about what might happen down the road. Both shippers and carriers face a trade-off between stability and prices. A balance is essential for business continuity of the supply chain partners.”

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