Index Shows European Truck Rates Sliding

Index Shows European Truck Rates Sliding

An international trucking index shows road freight rates in Europe have dropped 7 percent over the past five months.

The Freightex European Road Freight Rate Index fell as shipping demand in Europe dropped, research firm Transport Intelligence said today.

The euro dropped to a two-month low against the dollar as European Central Bank President Mario Draghi said he expects the euro zone to remain weak in 2012.

European road freight rates rose 21.2 percent from May 2010 through May 2012, according to the index, as carriers bounced back from the 2009 financial crisis.

The index is based on pricing data from Freightex, a British-based logistics intermediary specializing in trucking between the U.K. and Continental Europe.

After two years of truck rate hikes, European shippers increasingly are resisting higher pricing, Transport Intelligence said in its November 2012 index report.

“The big problem is volatility,” Transport Intelligence said. “The swings in demand from month-to-month are both large and unpredictable.

“This is affecting planning by suppliers and may have the longer term effect of depressing investment and therefore the availability of capacity.”