Transport Prices up by 13.5 Percent

August 28, 2010 · Filed Under Logistics

The fourth edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals that transport prices went up by 13.5% in in the second Quarter of 2010 compared to the first Quarter 2010. For the first time, price levels equal the levels of the pre-crisis period (H1 2008).

Nevertheless they are still 2.2% under the level Q2 2008. The significant increase in demand for transport services is one of the main drivers for the price increase. The capacity index, an indicator of available transport capacity, decreased by 44% in Q2 compared with Q1 2010.

Based on these volatile price developments traditional long-term sourcing strategies may not lead to the expected financial benefits that logistics managers are striving for. Experts recommend to adjust existing strategies for realizing benefits in the current market dynamics. The economic outlook as well as the issue of sustainability will lead to new, innovative sourcing strategies in transport.

Erwin den Exter, Principal Consultant at Capgemini Consulting, said: “We have seen a significant price increase during the second quarter, especially during the first months. The increase slowed down in June, but we still see an increasing trend”.

Peter Förster, Managing Director of Transporean GmbH, added: “Taking into account today’s market dynamics, traditional sourcing strategies may not bring the expected financial benefits that logistics managers are aiming for. In 2006 we had a similar situation, many tried to fix the prices for a longer period as they had expected prices to increase even more in the following year. In 2007 they realised the opposite: they were stuck in high 2006 prices whereas the market prices had decreased significantly in the meantime.”

Further Details: Transport Market Monitor (August 2010)