Skip to main content

Future Freight Rates Development

By November 19, 2023Uncategorized

European road and parcel freight rates will increase with 8% in the next six months; Global ocean freight rates are stable at a low level, but air freight rates will further decrease by another 5%. These are the main conclusions from the ‘Transport Monitor’ of supply chain and logistics consulting company BCI Global. For the tenth time an esteemed panel of shippers and manufacturers gave their expectations on freight rates developments for the next six months.

European Road Freight: + 8%

In the last 12 months, despite economic slowdowns and fierce competition, European freight costs increased due to inflation and high fuel costs. The BCI panel expects that the road freight rates will increase with 8% in the next six months. Reasons: inflation, driver wage increases, and investments in electric trucks. “But also the upcoming toll increase in Germany plays an important role. The so-called Maut will nearly double as of December 1st, from 19 Eurocents to 35 cents per kilometre,” explains Carlo Peters, Principal Consultant at BCI Global. Parcel freight rates are also expected to increase 4% (domestic) up to 7% cross-border (within Europe).

Global Ocean Freight: stable at all time low

“The times of skyrocketing global ocean freight rates are definitely over,” says Robert Wieggers, Principal Consultant at BCI: “Continuation at the current all time low is expected despite the fact that the European Trade System surcharge to reduce CO2 emissions levels will become valid as of January 2024. Our estimate is a 25-75 euro additional cost per container and it is the expectation that carriers most likely will not be able to pass these additional costs to their customers.”

Global Air Freight: -5%

Global air freight charges will drop with 5% in the next 6 months. “The demand is expected to stay weak,” says senior consultant Henry van den Born. “Even taking the upcoming peak season into account, full warehouses and recession fears do not make the market enthusiastic, while the available belly freight capacity in passenger planes increases.”

The post Future Freight Rates Development appeared first on Logistics Business® Magazine.

European road and parcel freight rates will increase with 8% in the next six months; Global ocean freight rates are stable at a low level, but air freight rates will further decrease by another 5%. These are the main conclusions from the ‘Transport Monitor’ of supply chain and logistics consulting company BCI Global. For the tenth time an esteemed panel of shippers and manufacturers gave their expectations on freight rates developments for the next six months.

European Road Freight: + 8%

In the last 12 months, despite economic slowdowns and fierce competition, European freight costs increased due to inflation and high fuel costs. The BCI panel expects that the road freight rates will increase with 8% in the next six months. Reasons: inflation, driver wage increases, and investments in electric trucks. “But also the upcoming toll increase in Germany plays an important role. The so-called Maut will nearly double as of December 1st, from 19 Eurocents to 35 cents per kilometre,” explains Carlo Peters, Principal Consultant at BCI Global. Parcel freight rates are also expected to increase 4% (domestic) up to 7% cross-border (within Europe).

Global Ocean Freight: stable at all time low

“The times of skyrocketing global ocean freight rates are definitely over,” says Robert Wieggers, Principal Consultant at BCI: “Continuation at the current all time low is expected despite the fact that the European Trade System surcharge to reduce CO2 emissions levels will become valid as of January 2024. Our estimate is a 25-75 euro additional cost per container and it is the expectation that carriers most likely will not be able to pass these additional costs to their customers.”

Global Air Freight: -5%

Global air freight charges will drop with 5% in the next 6 months. “The demand is expected to stay weak,” says senior consultant Henry van den Born. “Even taking the upcoming peak season into account, full warehouses and recession fears do not make the market enthusiastic, while the available belly freight capacity in passenger planes increases.”

The post Future Freight Rates Development appeared first on Logistics Business® Magazine.

Leave a Reply