Capacity index decreases to seven year low & diesel index declines after four quarters of growth

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The thirty-second edition of the Transport Market Monitor (TMM) by Transporeon and Capgemini Consulting reveals that transport capacity decreased by 41.7% in Q2 2017 compared to Q1 2017.

Main highlights of the report:

  • The capacity index decreased by 41.7% to an index level of 65.8 in Q2 2017. Compared to Q2 2016, the capacity index is 25.2% lower.
  • The price index increased by 17.7% in Q2 2017 (index 101.2). When comparing to the index level of the previous year, Q2 2016, we see that the price index increased by 5.1%.
  • The diesel index declined after four quarters of growth, to an index of 77.7. This index is 6.2% lower than Q1 2017.
  • The European Trade Flow Index is expected to drop by 3.1% in Q2 2017, but remains on a high level compared to the previous years.

Erik van Dort, Supply Chain Director at Capgemini, notes: "Although it is normal for the price index to recover after a traditionally slow first quarter in terms of transportation, this year's price increase of nearly 18% is particularly high. It will be interesting to see whether capacity will remain this low in Q3, to prevent the decrease of price that has become normal these last few years."

Marc-Oliver Simon, Managing Partner of Transporeon, added: "Transport capacities reached a seven year low in the second quarter of 2017. This is due, for one thing, to the booming economy. Another reason might be the increasing shortage of drivers. It is indicative of this development that transport prices increased in the second quarter, for the first time since 2014, in spite of the decline in diesel prices. Up-to-date allocation tools, such as on web-based platforms, offer good opportunities to obtain necessary capacity at short notice at times like these, above all at a competitive price."

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