News Article
EUROPEAN HAULAGE CAPACITY ISSUES
The following is a BIFA article published recently which may be of interest to our clients.  Whilst we can’t comment precisely on some of the statistics quoted we are in complete agreement with the principles.
 
* * * * *
 
EUROPEAN HAULAGE CAPACITY ISSUES
 
An ageing workforce, driver shortages and higher fuel prices are increasing problems across the transport sector.
 
On occasion BIFA has commented on problems facing the road haulage industry, which regardless of geographical location seem to be the same.  The sector faces issues with an ageing workforce, higher fuel prices and driver shortages.  Added to this are ever-tightening environmental considerations that will force the industry to replace older trucks with more modern less-polluting but more expensive vehicles.  All these factors are pushing up the sector’s operating costs and prices.
 
Available transport capacity is fluctuating around an historically low level, according to the latest quarterly Transport Market Monitor (TMM), published by technology and consulting group Capgemini and cloud-based logistics software provider Transporeon, which tracks transport market dynamics.
 
Record costs
 
“In the second quarter of 2018, transportation costs reached the record of Q4 2017.  More importantly, the transportation costs could further rise to a new record high in the second half of this year.  This is a direct result of continuously rising fuel and driver costs, while at the same time transport demand increases across all industries,” said Lars Vitters, supply chain manager at Capgemini Consulting.
 
Into this mix, as widely reported, consideration has to be given to the ongoing EU debates regarding the Mobility Package, which could see further capacity stripped out of the marketplace with stricter enforcement of regulations regarding drivers and tightening of the cabotage regulations.
 
The TMM price index was up 17.2% on the first quarter of the year and showed a rise of 6.6% compared with Q2 2018 were expected to show a decrease of 11.6% compared with the first quarter of the year.
 
Against these problems, there are opportunities to improve vehicle utilisation by reducing empty running.  This will require using IT solutions and better co-operation between all parties involved in international haulage.