Road Freight Rates in Europe Have Been Growing for Five Consecutive Quarters and Are Going Upwards in the Sixth
The average road freight rates in Europe increased by 2.9% in the third quarter of 2021 against the previous year.
According to the UK-based Air Charter Service, a charter from Asia to North America on a Boeing 777 now costs around $2 million. For reference, the pre-pandemic highest price for such a charter was $750K.
We would like to share statistics figures and estimates on the rate growth from European road freight carriers. his information is important for understanding the near and long-term prospects in the freight market both within the European Union and to / from Europe.
The report covers continued disruptions in supply chains, tonnage deficiency and shortage of equipment forcing the companies to re-prioritize supply chain management systems.
Prices for one-way air freight charter flights have soared to US$1.5 million as capacity is getting tighter during peak seasonal demand periods.
To diversify the existing supply chains, logistics operators are developing alternative routes from China to the east coast of North America using Russian railways and Baltic ports.
In July this year, TELS passed the CRS audit (for compliance with the principles of Corporate Social Responsibility) again increasing its score by 8 points!
The air cargo market has got many peculiar features. It will surprise by numerous things from relationships with agents to the unexpected behavior of the airlines, which is quite often. Nevertheless, TELS has been developing successfully in this market demonstrating unique qualities at times and taking a leading part in solving numerous issues.
According to the International Air Transport Association (IATA), the demand for air cargo services increased by 12% in April 2021 compared to the values in April 2019.
Summer has always been characterized by a seasonal decline in transportation rates in the market. Forwarding companies take this factor into account when preparing annual contracts with their customers.
The major characteristic of LCL transportation market between Russia and the European Union is that there is a wide range of services for transporting groupage cargo from the EU to the Russian Federation by heavy trucks and small consignments from Russia transported by LCV.
The rates for container shipments between Asia and Europe by railway have dopped below the shipping costs by sea.
The shortage of carrying capacity in the air cargo market is currently around 30% despite the higher level of cargo turnover against the pre-pandemic period.
In January – February 2021, 109.3 thousand TEU were transported via Russian railways from China to Europe and back, which is 2.5 times more against the same period of the previous year.
The press service of Rostec State Corporation, Russia, reports their plans to equip railway entry points at the border between Russia and China with customs inspection complexes (CIC) by December 31, 2021, which will allow to check freights automatically without stopping the train.
The massive growth in government spending has resulted in a sharp increase in global debt. Trying to maintain the economy ruined by the coronavirus pandemic, the central banks made an unprecedented cut in interest rates in 2020.
Several cargo ships have lost a large number of containers in recent months in different incidents, reports the Wall Street Journal.
In 2020, the market of transportation and logistics differed greatly from the previous periods. The experience of a logistics operator acting in conditions of economic and political recession gained before was applied only partially last year – the major factor influencing the entire world economy was the COVID-19 pandemic.
We continue to publish the results of the logistics audit in the new conditions. This article will review the capacities of different industries and the changes taking place in crises like the COVID-19 pandemic.
Marketing Research and Analytics Departments of TELS Group carried out a marketing audit of the transportation industry developing in new conditions. This article summarizes one part of the report on the market trends that have been developing more rapidly as a result of the pandemic and will be shaping the future of transportation and logistics.