The Upply x Ti x IRU European road freight rates index for Europe shows that spot rates fell by 2.4 index points in Q4 2022 vs Q3. This represents the first fall in the spot index since Q1 2020, but spot rates still remain up 18.1 points on Q4 2021. Meanwhile, the contract rates index rose 0.4 points quarter-on-quarter in Q4 and contract rates are now up 19.0 points year-on-year.
The drop in European spot rates results from low peak season demand due to inflation, pushing consumer confidence down to record low levels while European inventory levels remain high. Euro Area inflation peaked at 10.6% in October and Euro Area consumer confidence reached a historic low of 95.1 points in September with negligible improvement throughout Q4 2022.
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