Transport rates reach three-year low

Send to friend

The fifteenth edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals that transport prices decreased by 8.1% in Q1 2013 compared to Q4 2012. The transport price index is at its lowest point since 2010.

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

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.

 

Comments (0)

Add a Comment

This thread has been closed from taking new comments.