The latest European Road Freight Rates Index, compiled by data expert Upply, consultancy Transport Intelligence and international road transport union IRU, has revealed that Q1 contract rates index fell by 2.3 points quarter-on-quarter.
Compared to contract rates index, the spot rates index fell more sharply, by 3.8 points, in the same period.
However, year-on-year, the spot index was up by 1.6 points and the contract index rose by 0.4 points.
The Q1 2025 European Road Freight Contract Rate Benchmark Index fell to 131.1 points, 2.3 points lower than in Q4 2024, but 0.4 points higher than in Q1 2024.
The Q1 2025 European Road Freight Spot Rate Benchmark Index fell to 134.1 points, 3.8 points lower than in Q4 2024, but was 1.6 points up year-on-year.
According to IRU’s 2024 driver shortage survey, there are now vacancies in 426,000 driver positions across Europe.
Q1 2025 diesel prices were up by 4.8% versus Q4 2024, though prices have fallen in recent weeks, the index revealed.
The report to the index said outlook for rates across Europe is for a cooling of pressure on rates, as demand weakens, fuel prices fall and labour cost growth slows.
Michael Clover, Transport Intelligence (TI) head of commercial development, said: “European demand was already quite weak and the uncertainty from tariffs has led many to expect lower road freight volumes.
“We do expect lower volumes to reduce pressure on road freight rates through 2025 and as cost growth has also slowed, we expect to see fairly stable rates for the rest of the year”.
Vincent Erard, IRU senior director for strategy and development, added: “Road transport stands at a critical inflection point – where resilience, sustainability and competitiveness must converge.
“Despite economic headwinds and global trade uncertainty, Europe’s transport sector has the potential to power a new cycle of regional growth.
“Policymakers and industry must now co-create the conditions that enable long-term investment, digital transformation and decarbonisation – especially for the SMEs that form the backbone of our supply chains.”
Thomas Larrieu, Upply chief executive, commented: “The European road transport market is once again going through a complex phase, as major uncertainties in global trade are likely to weaken the still fragile economic recovery.
“At the same time, this may also lead to an acceleration of nearshoring, which could stimulate demand for road transport.
“The current balance of power remains fairly favourable to shippers, but it is wise to secure long-term capacity based on balanced partnerships with carriers.”
