You are probably aware transport markets across Europe are facing some of the biggest challenges they have ever experienced.
The geopolitical environment in Eastern Europe, rising energy prices, inflation, post covid driver shortages and fewer young drivers replacing those retiring are creating a significant imbalance with demand and supply.
- 'Driver demand in Europe already up 44% from January to September this year', according to IRU1, and this trend is worsening in recent weeks.
- 'A loss of 27% of capacity is to be seen in the car-carrier industry...[and]...5 to 10% of the remaining capacity staying on the parking lots for missing drivers', according to ECG2
The situation is further challenged by certain OEMs buying large quantities of capacity at prices above market levels, actually driving prices even higher for all. Although market day rates are often [150%] up on 2021 levels, these OEMs have been seen to be offering a further 100% above this level!
Against this backdrop BCA continues to seek new ways to provide a high-quality transport service:
- Several dozens of our BCA-owned trucks from our UK operations are being utilised to protect against profiteering;
- New transport partners have been onboarded and we are still acquiring more to extend our truck fleet;
- Sea vessel transport has been introduced to decrease the pressure on certain route.
However, despite these actions – and we will continue to implement more – we are not able to fully compensate for the continued price increases in the market and we will need to increase cross border transport prices charged to our buyers.
Therefore we apply an increase of 40%, which will take effect for vehicles sold from 5 December.
We remain committed to treating our customers fairly and to only push prices where absolutely necessary. We will keep the prices under review and will reduce the prices in spring provided the market pressures ease.
If you have any questions, please do not hesitate to contact your EU Business Partner.
Your BCA Team