General development

• The index for road transport capacity on the European spot market continued its downward slide in May 2021, which has already been ongoing since March. The index now stands at a three-year low.

• In May 2021, the capacity index fell to 74.7 points. This is -11.3% less than in the previous month. Compared to May 2020, the available capacity on the spot market even decreased by -58.4%.

• In contrast, an opposite development can be observed for the transport price index which has been rising since March 2021. In May, it peaked at its three-year high of 113.5 points.

• Compared to the previous month, transport prices climbed by +8.4% in May 2021. In relation to the same month of the previous year, the increase amounts to +28.0%.

 

Brexit impact

• Transport capacity and prices on the route between France and Great Britain for example are developing in line with the trends observed on the overall market.

• Compared to the previous month, transport capacities on the corridor fell significantly by -25.4%. They now stand at 88.1 index points. Compared to the same month last year, there was -40.9% less capacity available in May.

• In May 2021, prices on the corridor between France and Great Britain increased to 136.4 index points. This is +12.9% more than in April and represents an overall increase of +61.7% compared to May 2020.

 

Industry focus

• With +27.9%, Fast Moving Consumer Goods (FMCG) recorded the most significant price increase compared to the previous month. The price index for this sector peaked at 106.9 index points, a three-year high. Compared to the same month in 2020, the price increase was +42.5%. FMCG transport capacity fell by -15.0% to 99.2 index points in May 2021. This is -37.4% less than in May 2020.

• The transport of goods in the chemical and life sciences sectors also recorded a significant price increase. With 87.7 index points, prices in May stood +12.4% higher than in April. Compared to May 2020, the price increase was +16.6%. Transport capacity in this sector, on the other hand, is stable, with a loss of only -1.8% compared to the previous month. It now stands at 87.8 index points. Compared to May 2020, capacity fell by -61.5%.

• In the European automotive sector, road transport capacity fell by -13.7% to 75.4 index points in May 2021 compared to the previous month. It now stands -51.6% below the previous year’s level. Prices continue to recover and were +5.5% higher in May compared to April 2021, reaching 104.4 index points. They are thus +35.2% higher than in May 2020.

 

This is the result of the most recent evaluation of the Transport Market Monitor (TMM). The online service is provided by Transporeon, Europe’s largest logistic platform in Europe. The analysis is based on road transportation data of more than 1.8 million freight loads on the spot market per year. The data was updated on June 7, 2021.

“The economic recovery after the pandemic becomes evident when we look on the road transport market. Low transport capacities and rising prices are the result of a good order situation on the part of forwarders. At the same time, we are observing a further normalization on the route between France and Great Britain. The effects of the Brexit are hardly measurable anymore“, said Nikolay Pargov, Executive Director Freight Procurement & Audit at Transporeon.

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