Latest TEG Road Transport Index out now
3rd May 2023
Haulage road transport prices rise 3.6%, driving overall price increase despite falling diesel costs
New data from the TEG Road Transport Price Index Index reveals that haulage and courier prices saw a slight increase from March to April. While diesel costs are down, haulage prices rose 3.6% and courier prices rose 2%. This trend has been consistent over the last four years, except for the immediate aftermath of the pandemic.
While haulage prices are down 2% compared to the previous year, courier prices have risen 3.6%. As a result, the overall index was slightly up on its April 2022 level. Given the stubborn inflation, driver shortages, and supply chain issues, falling diesel costs have not been enough to keep prices down.
This supply chain impact has prompted recent analysis showing that the UK economy loses as much as £12 billion annually due to supply chain issues. These costs are inevitably passed onto consumers in the form of price hikes. For example, while haulage prices are down 2% year-on-year, hauliers must charge 11% more than they did four years ago during the same period.
However, businesses can mitigate the impact of such supply chain problems by embracing integrated digitisation solutions, such as Integra‘s. Over a quarter of the UK’s trucks operate empty, but digitisation can help hauliers share truck space and create efficiencies.
Lyall Cresswell, CEO of Integra, says:
“Falling diesel prices is very welcome news for the industry. It reduces a day-to-day expense for everyone, making every mile cheaper.
“But it’s clear that there are more permanent problems affecting hauliers’ and couriers’ prices. One of those is the driver shortage, so it’s encouraging to see the government once again taking action to get new drivers on the road.
“Another issue altogether is supply chain costs. Streamlining operations through digital solutions can help greatly here, so I’d encourage any road freight transport company to build digital tools into everyday processes. Then they’ll be more able to weather any costly supply chain disruptions.”
Kirsten Tisdale, Director of Logistics Consultants Aricia Limited and Fellow of the Chartered Institute of Logistics & Transport, says:
“The overall TEG index usually goes up at this time of year, 2020 excepted. The courier element has always gone up in April, but this year’s increase was the smallest. The haulage element has also gone up in April but continues to be deflationary against last year – despite accusations of profiteering in this sector, this is the 11th month running for which spot rates have been lower year-on-year.”
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