Contract and spot road freight rates in Europe both declined in the first quarter of 2025, according to the latest Upply x Ti x IRU index. Moreover, the industry continues to grapple with a severe driver shortage although there has been progress on harmonising licence regulations across the bloc.
The Upply x Ti x IRU European road freight rates index shows that Q1 2025 contract rates fell by 2.3 points quarter on quarter. Spot rates declined more sharply, by 3.8 points over the previous quarter.
However, year on year, the spot index was up by 1.6 points and the contract index rose by 0.4 points.
The IRU said that the end-of-year peak period has been followed by a return to low European demand. The start of 2025 has kept freight rates down as consumer demand remains subdued, costs have slowed their growth, and industry sentiment has been dampened trade disruption and tariffs. The result is reduced demand pressure on all sides, leading to rate falls in both spot and contract markets.
Ti’s head of commercial development Michael Clover said: “European demand was already quite weak and the uncertainty from tariffs has led many to expect lower road freight volumes. We do expect lower volumes to reduce pressure on road freight rates through 2025. And as cost growth has also slowed, we expect to see fairly stable rates for the rest of the year.”
Analysis shows that new capacity entering the market has been constrained. Heavy goods vehicle registrations fell by 16 percent between Q1 2024 and Q1 2025, and by 7 percent quarter on quarter. Notably, battery-electric truck registrations grew by 51 percent year on year to reach a 3.5 percent market share.
Meanwhile, the driver shortage crisis persists, with 426,000 unfilled truck driver jobs in Europe, according to IRU’s 2024 global truck driver shortage report.
The IRU also welcomed a vote by the European Parliament’s Transport and Tourism Committee endorsing the provisional Driving Licence Directive agreement. This followed recent formal approval by the European Council’s Committee of Permanent Representatives, the first of the EU co-legislators to back the deal. IRU said this reform responds to long-standing industry calls to address driver shortages and promote the digitalisation of driving licences while upholding high road safety standards.
IRU EU advocacy director Raluca Marian said: “[The] vote confirms strong political backing for a more modern, safer and more accessible framework for all drivers, including professional drivers. This sends a clear message that Europe is serious about supporting its transport workforce, through legal clarity, digitalisation and clearer recognition of third-country drivers’ skills.”
