ECG — 2023-05-23
News from ECG
The Finished Vehicle Logistics (FVL) Cost Index for Q4 2022 stands at 158.3 which indicates a cost increase of 58.3% from 2019 January to 2022 December. In the initial full report for the period until 2022 September, the European FVL Cost Index stood at 153.9; hence, an additional cost increase of 4.4% points was witnessed across all segments and countries within Q4 2022. For the four segments following results were derived:
Logistics segment road: The FVL Road Cost Index amounts to 128.7 which shows an overall cost increase of 28.7% between 2019 January and 2022 December. The index decreased by 4.1 compared to the previous quarter indicating a cost reduction of 4.1%-points in Q4 2022. After reaching record levels in the previous quarters, declining diesel costs predominantly affected the observed overall cost decrease.
Logistics segment sea: The FVL Sea Cost Index amounts to 236.4 which shows an overall cost increase of 136.4% between 2019 January and 2022 December. The index increased by 22.7 compared to the previous quarter indicating an additional cost increase of 22.7%-points in Q4 2022. This notable cost increase is primarily tied to the ongoing tight pure car and truck carrier (PCTC) supply-demand market situation which continues to drive PCTC vessel time charter rates.
Logistics segment rail: The FVL Rail Cost Index amounts to 121.7 which shows an overall cost increase of 21.7% between January 2019 and December 2022. The index decreased by 2.5 compared to the previous quarter indicating a cost reduction of 2.5%-points in Q4 2022. Amongst other factors, declining fuel costs predominantly caused the observed overall cost decrease.
Logistics segment compounds: The FVL Compounds Cost Index amounts to 118.3 which shows an overall cost increase of 18.3% between 2019 January and 2022 December. The index decreased by 3.1 compared to the previous quarter indicating a cost reduction of 3.1%-points in Q4 2022. This development is primarily caused by reduced utility costs, i.e., electricity, water, and gas, representing a notable share of overhead costs in this segment.
The full version of the updated figures for Q4 2022 differentiated by segments and countries is available as an appendix to the study released in March 2023 here. The presentation shared at the General Assembly & Spring Congress 2023 is accessible here.
Further updates of the index will be provided periodically. Should you have any questions on the FVL Cost Index or would like to be involved in the process of future index updates, please feel free to contact PwC Austria or the ECG secretariat