Growth in available road freight capacity in Europe puts pressure on rates

Due to the continued increase in available road freight capacity starting mid-2022, the spot market freight prices have been on a downward trend since November 2022. The spot rates have dropped by 18.5% in June 2023 compared to the previous year, according to Transport Intelligence, an analytics company. The contract rates remain at the same level.

The financial results of the European road freight transportation companies reflect declining market volumes. It is expected that the rates of transportation companies will fall in the coming months. However, the seasonal demand may mitigate this decrease. The peak season lasts from August to October and is usually the busiest time of year for carriers, as retailers begin to store supplies for the holiday season.

Source: trans.info