Capacity Index
Capacity Index in Transportation Sector drops drastically: Impact and solutions
The capacity index in the transport sector is under pressure, a worrying development indicating increasing tension in the European road transport market. Recent data from Transporeon reveals a drastic drop of 14.85% in just three months, with February’s index, which was at its highest at 109.52%, now significantly lower. This trend is an alarming indication of an increasingly tight market with a rising Tender Rejection Rate.
Several factors contribute to this downward spiral, with economic uncertainty and a chronic driver shortage playing a major role. It is becoming increasingly difficult for companies to find reliable and cost-effective transport solutions, resulting in increased challenges for the entire supply chain.
Economic uncertainty and labour shortages
The weak forecast for the European economy has a direct impact on the transport sector. Companies face fluctuating demand patterns and unpredictable market conditions, making transport planning and capacity management a complex task.
The persistent shortage of drivers worsens this situation. Demand for qualified personnel far exceeds supply, forcing companies to compete for limited resources. Moreover, there are also shortages of warehouse staff and planners, leading to operational inefficiencies and delays.
Impact
The decreasing capacity index has a direct impact on companies that depend on efficient transport. Delays, higher costs and uncertainty about deliveries can lead to customer dissatisfaction and damage your company’s reputation. Furthermore, you may face loss of sales and market share if you are unable to ensure timely and reliable deliveries.
Solutions for these challenges
The decreasing capacity index in the transport sector is an alarming indication of the growing tension in the European road transport market. Economic uncertainty and labour shortages have further exacerbated the challenges, forcing companies to look for innovative solutions to remain resilient.
Contact us today to find out how we can support your business in these challenging times.