Europe road freight index suffers quarterly fall, but outlook good

THE latest report on Europe's road freight rates shows a decline in its price index in the first quarter 2011 compared to the year previous increase of 8.4 per cent, attributed to typical seasonal effect and greater capacity, said report publishers Transporeon and Capgemini Consulting.


Despite diesel prices being up by 5.6 per cent the price index still fell and although March reflected recovery, capacity pushed down any increase.


The rest of 2011 is forecast to see increased demand for transport and increasing costs which will be reflected in a higher price index, said a report from UK's Transport Intelligence.


"Due to the recent developments in the market, we see an increasing awareness among shippers for upcoming changes in transportation costs, especially where cost increases have a direct impact on EBIT results," said Capgemini Consulting author and principal consultant, Erwin den Exter, who advises close monitoring to prevent unexpected impact on company results.


The Transport Market Monitor report studies price index by market segments with all showing a general dip with construction material a lesser drop than both Paperboard/Print and Timber who began decreasing in the last quarter 2010.
(Source:http://www.schednet.com)