TEG Road Transport Price Index rises 5.3 points in December, reaching new record high

Following a 2-month dip, the predicted December spike in road freight rates has come to fruition.

The latest data from the TEG Road Transport Price Index reveals that the average price-per-mile has increased by 5.3 points, a new record high after September’s peak and the two-month fall that came after.

December Key Findings:

Compared to November, there’s been a 5.3 point increase in what carriers are charging per mile, for both haulage and courier vehicles.

Looking at the state of the market in December 2020, the index reveals a 21.3 point year-on-year increase, reflecting the impact of driver shortages and 10-year-high inflation in 2021. The December 2021 price-per-mile average is the highest point since TEG records began in January 2019.

Trends for haulage and courier vehicle costs in December 2021 are following a similar pattern to the previous two years. The average price increased by 7.1 points from November to December 2020, and by 5.1 points from November to December 2019.

Average haulage price-per-mile also reached a record-high in December 2021, topping the previous peak in September 2021 by 0.9 points.

In December 2021, the price-per-mile for haulage vehicles was 12.1 points higher than that of courier vehicles. This continues an eight-month run of haulage vehicle prices exceeding courier vehicle figures, since first overtaking them in April.

Price-per-mile changes over the last 14 months

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Providing vital insight into the transport industry that the UK depends upon

The TEG Road Transport Price Index charts the price-per-mile cost for UK haulage and courier vehicles each month, which is a product of supply and demand levels affected by Brexit, Covid-19, driver shortages and other factors.

What is the TEG Road Transport Price Index

  • Charts the price-per-mile cost for UK haulage and courier vehicles each month
  • Uses data from over four million aggregated and anonymised transactions
  • Provides valuable insights to policymakers and industry operators alike
  • Tracks changes and highlights market trends
Industry benchmarking
Single source of truth
Quick view on market trends

The methodology

The data

The TEG Road Transport Index is an arithmetic weighted series, tracking PPM (Price per Mile) each month against a base of January 2019.

Weighting is applied according to the mileage mix from each vehicle type using the Paasche formula. This ensures the PPM of each month is compared accurately with the base month.

Data is gathered from completed transactions on the TEG platforms. 

PPM = (sum order values) / (sum order miles)
 
Sample size is circa 2m orders per annum across c. 8,000 participants.  

Data ID: A1, B1, C1

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Want to see more in depth data? Click below to visit the Integra Market Insights report