UK forwarder Davies Turner confirms findings of latest TMM report, noting that road freight market has eased significantly since the space shortages 12 months ago.
European road haulage capacity has eased significantly since the capacity shortages of last year, UK freight forwarder Davies Turner has confirmed, further evidence in support of thefindings of the latest Transport Market Monitor survey, as reported in Lloyd’s Loading List.
In response to recent reports that available road haulage capacity in Europe is at its highest level in a decade, the independent freight forwarding and logistics company said that the findings mirror what it is experiencing with its own daily overland trailer services. Philip Stephenson, chairman of the Davies Turner Group, said that the company’s own experience agreed with the survey results that the strong growth in European freight volumes in recent years was showing signs of slowing down in 2019.
“One year ago, European haulage capacity was very tight, especially in Germany, while now there is currently the capacity to handle demand, despite the well-publicised driver shortages,” he said.
“We have also noted that haulage prices in the first quarter of 2019 were higher than in the first quarter of 2018. That is not surprising, despite the situation regarding supply and demand, as we are seeing a much-needed catch-up in pricing, as underlying operational costs continue to increase strongly due to driver shortages pushing up employment costs. Road tolls and fuel prices are increasing.
“Past experience does tell us that for seasonal reasons, the available overland transport capacity usually is greater in the first months of a year.”
He said many of the shippers that rely on his company’s daily European trailer services are moving their goods on a contract basis, and value the guaranteed services that it offered. “As a result, our own freight volumes and market share show continued healthy growth,” he stressed.
Late last month, Lloyd’s Loading List reported that available road haulage capacity in Europe is at its highest level in a decade, according to the latest Transport Market Monitor (TMM) published by logistics consultancy TIM Consult, an offshoot of German cloud-based logistics software provider, Transporeon. Its capacity index rose by 31.4% in the first quarter of 2019 over the previous three-month period (Q4 2018) and was 14.9% higher versus Q1 2018, noting that the trend had continued in April.
TIM Consult’s managing director, Oliver Kahrs, underlined that the strong increase showed that “already during the first months of this year there were significantly fewer goods on Europe’s roads.”
Davies Turner’s European overland trailer services use a pan-European network of partners, including through its membership of System Alliance Europe – which delivers standardised EDI links and shipment tracking. The company provides groupage, part load and full load trailer services with dedicated express transit and super-express options throughout Europe, extending to Russia, Central Asia, the Middle East, Turkey and North Africa.
Source: Lloyd’s
