European road freight rates Q4 2024 – A slow climb amid rising costs

The latest data from the Upply x Ti x IRU European road freight index shows a marginal recovery in rates, with contract rates rising by 2.8 points quarter on quarter (QoQ) and spot rates edging up by 0.5 points. However, year-on-year (YoY), both indices remain below 2023 levels, reflecting a sluggish demand environment.

Key takeaways for Irish and UKlogistics leaders:

• Driver shortages remain critical – 500,000 unfilled positions (12% of all roles) are tightening capacity and pushing costs higher.
• Labour costs are driving expenses up – wages rose 5% YoY, making driver pay the fastest-growing cost component.
• Diesel relief but overall costs stay high – Diesel prices fell by 11.7% QoQ, but this hasn’t offset rising labour and operational costs.
• Capacity constraints persist – New truck registrations in the EU dropped 29%, limiting fleet expansion.
• Rates likely to increase – Weak demand is capping price surges, but high costs and constrained supply mean even minor disruptions could push rates higher.

With 89% of EU truck operators being SMEs, cost pressures and regulatory changes (like Eurovignette and CO₂ standards) are squeezing margins further. The challenge for businesses is balancing cost efficiency with long-term sustainability in a constrained market.

Read the full analysis to stay ahead of the trends.