TEG Road Transport Index Shows Steady Rise in September as Transport Sector Braces for the Festive Season

2nd October 2024

The TEG Road Transport Index reported a consistent rise in both haulage and courier prices during September, continuing the steady upward trend seen in previous years. As autumn begins, the transport industry is experiencing price growth that aligns with the seasonal demand patterns.

Key Index Highlights:

The overall TEG Road Transport Index increased by 1.6 points to 128.3, marking a 1.26% rise compared to August and extending the positive trend.

In comparison to September 2023, the index now sits 4.06% higher, reflecting the sector’s steady growth.

The haulage sector showed a further 2.2-point increase (1.76%), reaching 127.4 points, though the year-on-year growth has eased slightly.

Courier prices saw a more moderate rise, up by 1.1 points (0.86%) to 129.1, with annual growth at 1.33%.

This continuous growth is attributed to the sector’s ability to adjust to rising costs and the anticipation of heightened activity ahead of the Christmas season.

Positive Signs for the Logistics Industry
In addition to the steady rise in transport prices, the Barclays-BDO UK Logistics Confidence Index for 2024 has jumped 10.3 points to 57.6, the highest since 2015 (excluding the Covid bounce back). The study suggests that more stable trading conditions have led to optimism among logistics operators, with 50% expecting profits to rise over the next year.

The Bank of England’s recent interest rate reduction to 5% and continued low inflation (2.2%) further support the sector’s positive outlook, despite external economic pressures.

Fuel Price Decline Offers Relief to the Industry
While transport prices continue to rise, fuel costs are falling. Diesel prices dropped by 5.98p in September to 141.81p per litre, marking a 9.9% year-on-year reduction. Petrol prices also saw a decrease of 5.54p to 136.79p per litre, a significant drop not seen since October 2021.

However, with ongoing global uncertainty, particularly in the Middle East, the stability of these lower fuel prices remains uncertain.

DVS Grace Period Applications: Haulier Concerns Over TfL’s Bulk Process
Transport for London (TfL) has opened a window for hauliers with over 100 vehicles to apply for Direct Vision Standard (DVS) grace period permits. However, many smaller operators are concerned about bottlenecks and inconsistencies with the application process. The 28 October deadline adds further urgency, and the Road Haulage Association (RHA) is pressing for a more streamlined approach.

Expert Insights
Kirsten Tisdale, Senior Consultant at Aricia Ltd, commented: “The continued rise in the haulage index, despite falling diesel costs, suggests other factors, such as capacity and driver costs, are influencing the market. Meanwhile, the courier index remains more closely tied to fuel price movements.”

About TEG
The TEG Road Transport Index is a comprehensive indicator of transport pricing trends, offering valuable data for operators across the logistics and courier sectors. By tracking these price movements, businesses can better plan for the future and respond to market changes. Learn more here: https://transportexchangegroup.com/road-transport-price-index/

To read the full September report, click here.

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