Diesel prices, driver shortages and drought in Europe have all played a significant role to push average European road freight rates up again in Q3 despite lower consumer spending. However, data from the end of the quarter shows prices softening towards the end of Q3. • Average European road freight contract rates up to an all-time high in Q3 2022 (129.7 index points), up by 5.4 points Q-o-Q and by 19.6 points Y-o-Y. In the spot market, rates hit 142.6 points, an increase of 6.0 points Q-o-Q and 26.4 points Y-o-Y. • Rates on many European lanes are beginning to soften after this Q3 peak. • Spot rates are now 12.9 points above contract in Europe. The gap was 12 points in the previous quarter and 6.1 points in Q3 2021. • Diesel costs usually account for one third of the total operating transport costs, but given the increase, they may now account for 50% of costs. • Driver shortage growth is expected to continue to increase until the end of 2022, with a 40% estimated increase in unfilled truck driver positions. (....)