European road freight prices, according to the Upply x Ti x IRU index, show that spot prices underperformed contract prices in Q3 2023.
Edited by: V. Veyazis
In particular, spot prices fell by 4The consecutive quarter, in contrast to the spot contract index which rose for the first time since Q4 2022.
In the 3rd quarter of this year, the spot index is moving at lower levels against the contract index, which means “that the spot prices are closer to their base level (Q1 2017) against the contract prices.
The spot market index fell for the fourth consecutive quarterup 1.2 points to 125.4.
The rate of decline in spot prices has slowed by more than 1/3 as they begin to ease in response to lower demand formation.
Contract market prices increased by 1.4 points compared to the previous quarter, while it decreased by only 0.4 points compared to the third quarter of 2022.
The change in contract prices in Q3 2023 is the first increase in the index since Q4 2022.
Summarizing the findings, the following emerges:
-THE European Road Freight Spot Rate benchmark in Q3 2023 was 125.4, 1.2 points lower than Q2 2023 and 14.8 points lower than Q3 2022.
-THE European Road Freight Contract Rate benchmark in Q3 2023 it stood at 128.1 points, 1.4 points higher than Q2 2023 and only 0.4 points lower than Q3 2022.
-Toll price increases in Germany next December could increase toll costs up to 83%, an increase that can be passed on to customers. Toll rates are also expected to increase in other EU member states during 2024.
-New forecasts from the IRU show that driver shortages in Europe are set to worsen again, with 11% of seats to remain vacant in 2024.
– Fares are expected to remain low with a slight seasonal increase in the fourth quarter, however stabilization is expected in 2024.
As assessed, “Short-term demand-side pressure on road freight continues to ease across Europe. Consumers who now have less disposable income in real terms are consuming fewer goods, while firms are reducing production in the face of falling demand.
Available Eurostat data for Q3 2023 shows no quarter-on-quarter change in European retail trade.
Overall demand-side pressure on road freight continues to ease, freeing up capacity and allowing prices to fall further.”