Slide in European trucking capacity raises spot market rates

Trucking capacity on European roads remained at a low level in July according to industry analysts, resulting in a significant increase in spot market rates.

Figures from Transporeon showed that road transport capacity was at a low level of 76.7 points last month, a 26.9% reduction in capacity compared with July 2020.

Capacity fell by 2.4% compared with June 2021.

Transporeon said there was a recovery in the packaging materials sector, with a rise of 17.5% to 69.4 points in July.

However, it added that this increase had not had a positive effect on prices.

By contrast, capacity in the automotive sector fell by 8.3% to 69.5 points in July and prices reached 103.9 points, an increase of 0.9% compared to the previous month.

Transporeon said a year-on-year comparison showed that prices had risen 18% compared to July 2020.

Nikolay Pargov, executive director of freight procurement and audit at Transporeon, said: “The truckload capacity shortages in Europe continue, which results in high spot market rates while available capacity remains on a low level, especially in the automotive sector.

“This development has been driven by many factors and it creates inflationary pressure on the economy, potentially slowing down its recovery.”