Following its well-recognized launch in March 2023, the FVL Cost Index has proven to be a useful tool in creating awareness for the FVL industry as well as providing transparency on industry-specific cost developments. The index has sparked the interest of various market participants and has been requested frequently. Based on the positive feedback submitted by the majority of participants in the recent feedback survey conducted in April 2023, ECG and PwC Austria have agreed on a long-term partnership relating to the FVL Cost Index to provide continuous updates of respective index figures.
After the initial presentation at the ECG General Assembly & Spring Congress in Thessaloniki, we are hereby pleased to officially publish the Q4 2022 update of the FVL Cost Index. Based on FVL relevant cost factors per logistics sector, selected countries, and representative data sources, the latest European FVL Cost Index stands at 158.3 which indicates overarching cost increases of 58.3% between January 2019 and December 2022. In the initial full report for the period until September 2022, the European FVL Cost Index stood at 153.9 and an additional cost increase of 4.4% points was witnessed across all countries within Q4 2022. For the four sectors, the 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 January 2019 and December 2022. 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 January 2019 and December 2022. 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 January 2019 and December 2022. 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 (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 ECG 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.
