Eng
The latest Transport Intelligence report indicates that both contract and spot rates increased in Q3, even though demand and the condition of European industry remain uneven.
The increase in contract rates is driven by rising structural costs – driver wages, insurance and road charges. Meanwhile, the rise in spot rates results mainly from seasonal recovery and increased demand for fast-moving consumer goods.
Industrial production in Europe still shows high volatility, making the signals of recovery fragile and ambiguous. German factories have slowed again – according to the report, new orders there fell by 3.6% quarter-on-quarter, and exports dropped by 5.2%, which clearly weakens demand for transport, particularly on routes linked to the automotive and machinery supply chains.
At the opposite end is Spain, which is showing much stronger momentum – the August PMI at 54.3 points confirms the fastest rate of growth in almost a year.
Changing global trade directions
In Q3, European ports came under visibly increasing pressure due to a rapid shift in global trade directions.
On the export side, a dynamic rebound can be observed – EU exports increased by 8.6% quarter-on-quarter, the strongest rise since 2020. The main drivers were the chemical sector and the machinery and automotive industries, which recorded increases of 24.4% and 5% respectively.
The situation on the import side is completely different, where spot rates are falling, and the market is characterised by weaker short-term demand.
All these factors limit demand pressure on routes from ports to inland cities, causing falling import rates and rising volatility in the transport market serving Europe’s main seaports.
What to expect in the coming months?
The European road transport market is entering the final quarter of the year with clear momentum. The increase in contract and spot rates, the rebound in retail trade – especially in food – and economic improvement in southern Europe create conditions for moderate improvement for hauliers.
In the coming months, one can expect the typical year-end increase in rates, especially on routes to the United Kingdom and in the FMCG sector, where pre-Christmas volumes traditionally peak.
Source: trans.info