General economic development: Euro area
- Annual inflation rate in the Eurozone fell to 1.8% in September 2024, the lowest since April 2021, compared to 2.2% in August and forecasts of 1.9%, preliminary estimates showed.
- Inflation is now below the ECB target of 2%.
- Prices fell much more for energy (-6% vs -3%) and inflation slowed for services (4% vs 4.1%) while prices for food, alcohol and tobacco increased slightly more (2.4% vs 2.3%).
- Meanwhile, core inflation rate also eased to 2.7% from 2.8%. Among the bloc's largest economies, inflation slowed in Germany (1.8% vs 2%), France (1.5% vs 2.2%), Italy (0.8% vs 1.2%), Spain (1.7% vs 2.4%).
- The Gross Domestic Product (GDP) In the Euro Area was worth 15544.86 billion US dollars in 2023, according to official data from the World Bank. The GDP value of Euro Area represents 14.74 percent of the world economy.
- The consumer confidence indicator in the Euro Area rose by 0.5 points from the previous month to -12.9 in September 2024.
Source: World Bank, Eurostat
Transport capacity and fuel prices
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Capacity Index vs Diesel Price
Compared to the previous quarter, capacity increased to 97.8, while the diesel price dropped to €1,574.91 in the third quarter of 2024. -
The European road freight capacity index
showed a year-on-year decrease of -7% in September 2024 compared to last year -
The European Truck Operational Efficiency Index
indicates a downward trend in 2024, with trucks taking longer to cover similar distances than in 2023. The Transporeon Summit in Vienna noted significant changes in transportation networks due to past supply chain disruptions. Factors such as congestion, border checks, adverse weather, and road maintenance contribute to this decline, highlighting decreased capacity in the market compared to 2023.
Source: freightperspectives
European traffic updates
Mont Blanc tunnel closure
2nd Sep 2024: The Mont Blanc Tunnel will be completely closed to all traffic for extensive renovation work from September 2 to December 16, 2024. As a result, trucks traveling to and from Italy will need to use alternative routes, potentially leading to longer transit times.
More info: trans.info
Temporary German border control
16th Sep 2024: From September 16, 2024, Germany will reintroduce temporary border controls at all nine land borders for six months, including France, the Netherlands, and Denmark. Stricter checks already exist at borders with Austria and others. These controls will likely cause delays in road transport, affecting shipments in and through Germany.
More info: reuters.com
New law for Poland
1st Jan 2025: Non-EU companies moving goods in Poland must report activities via the SENT system before transport begins if certain conditions apply. After reporting, they receive a reference number. This also applies to EU transport companies doing cabotage in Poland. Companies must keep information updated and send real-time vehicle location data using a GPS device or the e-TOLL PL app.
More info: puesc.gov.pl
Export from EU to UK
31st Jan 2025: The new legislation regarding Entry Summary Declarations (ENS), originally set to take effect on 31 October 2024, has been postponed to 31 January 2025. This regulation is part of the UK’s post-Brexit customs protocols, requiring all goods entering the UK to have ENS submitted in advance. While the logistics provider handles the declaration, the customer must provide accurate information.
More info: bifa.org, gov.uk
Market updates on sustainability
Emissions Trading System (ETS)
The EU Emissions Trading System (ETS), launched in 2005, charges companies based on their greenhouse gas emissions. From this year onward, shipping will gradually be included into the current system:
- 2024: 40% of emission must be covered by emission allowances.
- 2025: 70% of emission.
- 2026 and beyond: 100% of reported emissions.
Billing is passed on to customers and updated monthly, depending on ferry usage and emission impact. From 2027, as similar system will be deployed for fuels for road transport.
For more info see our Sustainability Explainer video on ETS.
Road tolls in Europe
The European Commission formally notified sixteen EU countries, including Belgium and Spain, to advance the implementation of the Eurovignette Directive. For heavy-duty vehicles based on the principle of recovering the costs incurred (construction, operation, maintenance and development of the infrastructure network). The charge varies depending on the vehicle’s CO2 emissions.
More info: ecgassociation
Opinion piece
Road tolls: A political instrument for driving sustainability.
by Simon H. Galsgaard, CCO, DSV Road
Road tolls, emissions trading systems (ETS) and various governmental regulations have become a political strategy to drive the green transition in the transport sector. While these taxes are meant to help create a more sustainable industry in the long run, they place a significant financial pressure on the cost for moving goods around in the short term.
Imposing such tolls and charges has gained political traction, but it comes at a particularly tough time for the industry. As highlighted in our July market update, road transport is already struggling with driver shortages and capacity issues. And although inflation has recently slowed, the impact of years with high inflation is just beginning to unfold. Many hauliers have been absorbing rising operational costs, but this is no longer sustainable, forcing hauliers to scale down their operations.
With a decreasing number of trucks and drivers, hauliers are struggling to meet demand, resulting in ongoing structural challenges. Rising transport costs lead to increased expenses for businesses, ultimately affecting consumer prices.
Environmental regulations also introduce significant complexity, leading to increased administration for companies. Unfortunately, the reality is that the costs associated with sustainable technologies are still so high that tolls on fossil fuel technologies do not adequately incentivize a shift toward greener alternatives.
In summary, while road taxes and environmental charges may align with governments climate goals, they place significant strain on the logistics sector. Businesses relying on road transport must factor in these rising costs in their budgeting and prepare for further increases in transport expenses for 2025.
At DSV, we are closely monitoring these developments with great concern. Unfortunately, the capacity situation shows no signs of improvement - if anything, it's worsening. We continue to guide our customers and partners through these challenges to the best of our ability.
DSV and Volvo sign agreement to accelerate road freight decarbonisation
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