We are pleased to publish the first European Finished Vehicle Logistics Cost Index. In a joint partnership with PwC Austria, we have developed this index to provide transparency on industry-specific cost developments.
The independently developed index is the latest instrument in the ECG toolbox accessible to all players involved in the FVL industry. It is differentiated into four logistics segments (road, sea, rail, and compounds) across eight representative European countries (Belgium, France, Germany, Italy, Poland, Spain, Sweden, and the United Kingdom). In addition to the provided transparency, which is greatly needed in times of high and persistent inflation, it can facilitate the development of a standard for the wider logistics industry in Europe.
Based on FVL relevant cost factors per logistics segment, selected countries, and representative data sources, the FVL Cost Index stands at 153.9 which indicates that costs have increased by 53.9% from January 2019 to September 2022. For the four segments following results were derived:
- Logistics segment road: The FVL Road Cost Index amounts to 132.8 which shows an overall increase of costs by 32.8% between January 2019 and September 2022. The wide-reaching shortage of heavy-duty truck drivers across Europe, increasing driver wages and the dramatic spike in diesel prices – increasing by an average of 69% within the first seven months of 2022 – significantly impacted cost developments.
- Logistics segment sea: The FVL Sea Cost Index amounts to 213.7 which shows an overall increase of costs by 113.7% between January 2019 and September 2022. This significant rise in costs within the sea segment is predominantly caused by the tight pure car and truck carrier (PCTC) supply-demand market situation driving PCTC vessel time charter rates to an all-time high as well as continuously increasing asset values for PCTC vessel newbuilds.
- Logistics segment rail: The FVL Rail Cost Index amounts to 124.2 which shows an overall increase of costs by 24.2% between January 2019 and September 2022. Amongst other factors labour, fuel, and FVL rail asset costs have strongly impacted rail cost developments.
- Logistics segment compounds: The FVL Compounds Cost Index amounts to 121.4 which shows an overall increase of costs by 21.4% between January 2019 and September 2022. These cost developments are largely tied to compound land and labour costs, which are among the factors often linked to the Consumer Price Index (CPI), and hence represented high volatility levels during the examined period.