19 May
European road freight rates declined in the first quarter of 2025, reflecting weaker demand and rising economic uncertainty. According to the Upply x Ti x IRU index, contract rates dropped by 2.3 points and spot rates fell by 3.8 points quarter-on-quarter, though both saw slight year-on-year increases. Michael Clover, Head of Commercial Development at Ti, pointed out that “uncertainty from tariffs” has contributed to weaker expectations, forecasting relative stability for the rest of the year as cost pressures ease.
Consumer behaviour remains cautious. Eurostat reported only a 0.6% rise in household spending, while McKinsey found that 74% of consumers are spending less or choosing cheaper alternatives. Despite a 4.8% increase in diesel prices early in the quarter, recent declines offer some relief. Labour issues persist, with 426,000 truck driver vacancies reported across Europe. Wages are climbing: Spanish international drivers saw a 5.1% increase, and Italian drivers gained over €500 monthly through new agreements.
Looking forward, moderate economic recovery and growing support for regional production could boost demand for long-term transport contracts. IRU’s Vincent Erard emphasized the need for investment, innovation, and resilience in the sector. Upply CEO Thomas Larrieu highlighted nearshoring as a potential opportunity, though he cautioned that global trade volatility continues to challenge the road freight market.
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