The latest data from the TEG Road Transport Price Index reveals the average price-per-mile increased by 5.3 points from March to April.
April’s increase follows the patterns of previous years, with figures dropping between December and February after the Christmas/New Year spike, before rising again in spring.
Year-on-year for April, however, the index has increased by 8.8 points. Its current level of 117.5 points represents the highest figure for April since we first put the index together in 2019.
For haulage vehicles, there’s been a 5.2 point month-on-month increase in the average price-per-mile figure. Year-on-year, it’s now 6.3 points higher than last April.
For courier vehicles, the month-on-month rise is an almost identical 5.4 points. Year-on-year though, there’s been a much more substantial 10.9 point jump, highlighting how the courier price index has caught up with (and overtaken) the haulage index in recent months.
This is, in fact, the third consecutive month where the courier index has been higher than its haulage counterpart – and the gap has widened. There are now 2.6 points between the two, compared to just a 1 point gap when courier prices overtook haulage prices in February this year.
Focusing on a specific vehicle type, short wheelbase vehicles are bucking the overall courier trend, with their average price-per-mile dropping in April. This was mainly due to a decrease in the average journey length.
Also defying trends was Wales, the only region where the average price-per-mile dropped. Greater London, by contrast, experienced a sharp 11.6 point rise across all vehicle types, more than anywhere else in the UK.
Price-per-mile changes over the last 14 months
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.
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: A3, B3, C3