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The total number of available trucks sank.
The European economy is in trouble, with the cost of energy, materials and personnel on the rise. The effect on road transport: transport service providers are reducing transport capacities, which were already at a premium. This in turn is exacerbating the imbalance on the market, as shown by the TIMOCOM transport barometer.
The European economy is in trouble, with the cost of energy, materials and personnel on the rise. The effect on road transport: transport service providers are reducing transport capacities, which were already at a premium. This in turn is exacerbating the imbalance on the market, as shown by the TIMOCOM transport barometer.
Transport bottlenecks fuel price spiral in Europe
Despite continued delivery bottlenecks, raw materials shortages and difficulty receiving parts from suppliers, the demand for road transport remains high. But while demand continues to rise, the driver shortage and transport bottlenecks are fuelling a price spiral. The ratio of freight offers to vehicle space offers in Europe is badly mismatched, as shown by developments over the second quarter. In June, the ratio of freight to vehicle space in Europe was, on average, 85:15.
In Germany it was even higher, with an average of 89:11. The numbers for Germany indicate that during Q2, vehicle space was in particularly high demand in April and May, with lots of freight offers being entered into TIMOCOM’s freight exchange. The number of freight offers in April rose by 26 percent as compared to March 2022. In June, demand dipped slightly, by 8 percent as compared to the previous month, but was still 14 percent higher than the same month last year. In total, there were 63 percent more freight offers within Germany than there were in the first quarter of the year.
Transport capacity reduced, vehicle space at a premium
Rising prices for commodities and energy, combined with the driver shortage, have lead to many carriers and freight forwarders reducing capacities or prevented them from reactivating vehicles that are currently not in use. The total number of available trucks in the TIMOCOM freight exchange dropped by 19 percent in April. Over the course of the entire quarter, the amount of available vehicle space dropped by 7 percent as compared to the first quarter of the year. This represents a drop of 10 percent as compared to the same quarter in the previous year.
“It’s a service provider’s market right now,” according to Gunnar Gburek, Head of Business Affairs at TIMOCOM. “Finding vehicle space at short notice on the spot market is more important than ever, despite the high costs. Everyone is talking about the price, but we are seeing that finding available transport is currently more important than an inexpensive offer.”
The solution proposed by the EU Commission at the end of June could reduce tensions on the market. The proposal would make it easier for professional Ukrainian drivers to work in the EU. It would allow Ukrainian refugees who used to work as truck drivers to drive within the EU using their Ukrainian driver’s license for the duration of their protected status. In addition, it would mean that professional driver qualifications from Ukraine would be recognised across the EU. Read more
Source: TIMOCOM
