The fourth edition of the Transport Market Monitor by TRANSPOREON and Capgemini Consulting reveals that the road transport and haulage market is on the road to recovery. For the first time, price levels equal the levels of the pre-crisis period (Q1 2008). Nevertheless, they are still 2.2 percent under the level Q2 2008. The significant increase in demand for transport services is one of the main drivers for the price increase.
This latest edition of the Transport Market Monitor (TMM) shows that:
• Transport prices increased by 13.5% in Q2 compared to Q1 2010
• However, quarterly price levels are still 2.2% under the level Q2 2008
• Capacity index decreased by 44% in Q2 compared with Q1 2010 which helped drive price increase
• Decreased capacity index is caused by a positive economic trend: higher sales, increasing production volumes and shippers re-stocking their supply chains
Based on these price developments, traditional long-term sourcing strategies may not bring the expected financial benefits that logistics managers are aiming for. The Transport Market Monitor shows new strategies are needed to realize benefits in the current market dynamics. These transformations are likely to accelerate in light of the economic outlook but also by the sustainability policies that are now firmly fixed in company policies.
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 TRANSPOREON, 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 realized the opposite: they were stuck in high 2006 prices whereas the market prices had decreased significantly in the meantime. Clearly, new sourcing strategies along with the right IT tools are needed to maximize the benefits of this dynamic market."
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 analyzed by Capgemini Consulting. This results in monthly indices which are published on a quarterly basis.
