{"id":777,"date":"2021-02-04T11:49:00","date_gmt":"2021-02-04T11:49:00","guid":{"rendered":"https:\/\/phoenixglobalgroup.com\/mi-katigoriopoiimeno\/european-road-freight-rates-driven-down-by-pandemic-may-be-recovering\/"},"modified":"2024-02-27T09:52:13","modified_gmt":"2024-02-27T09:52:13","slug":"european-road-freight-rates-driven-down-by-pandemic-may-be-recovering","status":"publish","type":"post","link":"https:\/\/phoenixglobalgroup.com\/el\/nea\/european-road-freight-rates-driven-down-by-pandemic-may-be-recovering\/","title":{"rendered":"European road freight rates, driven down by pandemic, may be recovering"},"content":{"rendered":"<div class=\"news-short\">\n<div style=\"text-align: justify;\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">\n<div class=\"news-short\">By\u00a0<a href=\"https:\/\/theloadstar.com\/?s=Gavin+van+Marle\">Gavin van Marle<\/a><br \/>\n04\/02\/2021<\/p>\n<div>\n<p>European road freight rates registered their first annual decline last year, after the pandemic excoriated demand\u00a0across the continent.<\/p>\n<p>According to\u00a0new data from Transport Intelligence and digital road freight marketplace\u00a0Upply,\u00a0road freight rates across Europe fell on average by 1.6%, giving a benchmark rate of \u20ac1,060 ($1,271), or \u20ac1.55\/km.<\/p>\n<p>\u201cAfter four years of data collection, this is the first registered price fall,\u201d says a new report from the firms. \u201cIn 2019 a 1.5% increase in rates followed a 4.4% jump in 2018.\u201d<\/p>\n<p>It says the decline was largely due to lower\u00a0demand across Europe as the pandemic unfolded, a decline that would have been worse had it not been offset by reduced supply and border crossing issues.<\/p>\n<p>However, there were tentative\u00a0signs of a recovery in the fourth quarter, and the analysts warn that shippers could be looking at severe price increases this year.<\/p>\n<p>\u201cWe anticipate a steady recovery in 2021, driven by an expected increasing transport demand from Q221.\u00a0Key factors to monitor are\u00a0fuel price, EU economic growth and balance between transport offer and demand,\u201d said\u00a0Thomas Larrieu,\u00a0Upply\u2019s\u00a0chief data &amp; research officer.<\/p>\n<p>On a webinar yesterday,\u00a0Upply\u00a0road transport expert William\u00a0Beguerie\u00a0added that other factors that could spell rate increases were likely to come from problems\u00a0at the Channel, as a result of Brexit; a resumption of driver shortages;\u00a0structural changes in markets served by hauliers, such as the decline of traditional\u00a0retail models and the transformation of automotive supply chains; and the application of the EU\u2019s mobility package, which continues to be fiercely resisted by many eastern and central European countries with\u00a0significant\u00a0numbers of drivers.<\/p>\n<p>A key clause of the mobility package is that\u00a0drivers have the right to return home every three to four weeks, which east and central European haulage bosses argue would trash their economic operating models.<\/p>\n<p>This will be the first full year of the mobility package\u00a0and\u00a0Maciej\u00a0Wro\u0144ski, president of the Association of Polish Employers in Transportation and Logistics, said productivity could drop by around 20%, leading to carriers collectively seeing costs rise by\u00a0\u20ac1.3bn-\u20ac2bn, \u201cand that\u00a0is why these countries continue to fight the legislation\u201d.<\/p>\n<p>Mr\u00a0Beguerie\u00a0said: \u201cHigher prices might be needed to offset cost increases, but I believe the most pressing issue will be the risk of insolvencies \u2013 many SME hauliers are at risk of going bust.\u201d<\/p>\n<p>In\u00a0the fourth quarter last year, two lanes covered by TI-Upply\u00a0road freight indices bucked the trend of declining rates \u2013 UK-continental Europe and\u00a0Rotterdam-Duisburg.<\/p>\n<p>A burst of stockpiling in the weeks leading to the official end of the Brexit transition period\u00a0saw rates finish the year on a high and, despite lower demand this year, prices are expected to continue\u00a0to remain high as the initial \u201cteething problems\u201d to cross-Channel trade become permanent administrative burdens.<\/p>\n<p>\u201cThe consequences of Brexit are not fully clear yet,\u201d Mr\u00a0Beguerie\u00a0said.<\/p>\n<p>\u201cAs the UK implements border checks from\u00a0the middle of the year, there continue to be questions over market access, cabotage, transport of live animals,\u00a0phytosanitary\u00a0checks,\u00a0insurance, customs declarations and expected IT problems\u2026 what is clear is that nothing is clear, but we expect reduced capacity and higher prices, regardless of demand,\u201d he added.<\/p>\n<p>Fourth-quarter rates also increased on Rotterdam-Duisburg, largely, said Ti\u00a0quantitative analyst Andy Ralls, because Germany\u2019s manufacturing recovery was far quicker than its European peers, and its factories were forced to source goods from outside the bloc.<br \/>\n\u201cWe saw rates on this lane up by 3.4% as a result of the changing\u00a0relationship of German manufacturing.\u00a0It looks like Germany has been sourcing more from outside the EU, with China as a leading market, and we expect to see further increases on this lane\u00a0\u2013\u00a0although if there is a stronger European recovery, the sourcing could switch back,\u201d he said.<\/p>\n<\/div>\n<p>Source:<br \/>\n<a href=\"https:\/\/theloadstar.com\/european-road-freight-rates-driven-down-by-pandemic-may-be-recovering\/\">European road freight rates, driven down by pandemic, may be recovering &#8211; The Loadstar<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Gavin van Marle 04\/02\/2021 European road freight rates registered their first annual decline last year, after<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[29],"class_list":["post-777","post","type-post","status-publish","format-standard","hentry","category-nea","tag-2021-el"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>European road freight rates, driven down by pandemic, may be recovering - PHOENIX GLOBAL FREIGHT GROUP S.A. - Since 1991<\/title>\n<meta name=\"robots\" content=\"index, follow, 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