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Diesel prices drive rise in delivery costs

The price of transporting goods around Europe has risen in the second quarter on the back of higher fuel prices, according to a new report.

The Transport Market Monitor from Capgemini Consulting and logistics software company Transporeon found that the cost of transporting goods rose 6.6 percent year-on-year in the three months to June. The figure represents a 17.2 percent rise from the first quarter.

Much of the rise in transport costs is due to higher diesel prices, which have risen 6.6 percent year-on-year. Compared to the same period two years ago, the price is up 12 percent.

However, available capacity relative to demand, calculated by comparing the average number of bids in response to a transport request over time, has risen 6.6 percent year-on-year.

The report suggested that trade volumes for the quarter would be €2060 billion, down 8.3 percent year-on-year and 11.6 percent compared to the previous quarter.

Lars Vitters, supply chain manager at Capgemini Consulting, said that transportation costs could rise to a new record high in the second half of this year.

He said the rise was “a direct result of continuously rising fuel and driver costs while at the same time transport demand increases across all industries.

“Moving forward it will be interesting to see if there will be any impact on transport capacity now the European Union has relaxed cabotage regulation.”

Oliver Kahrs, director of business development at Transporeon, said: “The available transport capacity fluctuates around a historically low level, which pushes transport prices upwards. A current survey by Transporeon shows that the driver shortage and shortages in free load space are the greatest challenges for freight forwarders in 2018.

“In this context, two thirds of the transport service providers see the expansion of digital processes as an opportunity to win customers for connected loads and reduce empty kilometres.”

Kahrs said that missing capacities could be regained through a more efficient networking of shippers and a higher load factor of the trucks.

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