European road freight spot rates drop below contract levels for the 1st time in 7 years
Spot rates for European road freight have fallen below contract rates for the first time in 7 years, mainly because there's less demand from industries.
The reason contract rates are going up is because of new charges for emissions and other growing costs in the industry.
Contract prices are now higher than spot rates for routes from Germany to cities like Paris, Birmingham, Milan, and others.
In the last quarter of 2023, the European Road Freight Spot Rate Benchmark Index dropped to 123.8, down from 4.5 points from the previous quarter and 14.8 points lower than the same time last year.
Meanwhile, the European Road Freight Contract Rate Benchmark Index for the same period was at 129.4, up 1.7 points from the previous quarter but down 0.9 points from the same period in 2022.
Trucking companies are having a tough time because demand for shipping goods in Europe is going down, and they're not sure how much it will cost to operate.