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Road Transport Price Index – June 24

2nd July 2024

June transport prices continued to climb albeit below annual trend

The overall TEG index rose modestly in June, while courier prices stayed almost level month-on-month.

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Index trends at a glance

On the back of a strong rise in May, the TEG Road Transport Index inched up 1.8 points to 125.6 in June – a 1.45% monthly rise. This was comfortably lower than the year-on-year percentage change, which stood at 2.69%.

Haulier prices also experienced a further rise. They increased 3.5 points during June, which amounted to a 2.93% monthly rise. Again, this was lower than the annual percentage change – 3.98%.

Meanwhile, courier prices stayed almost level. The index increased only 0.3 points in June (0.23% monthly rise), compared to 3.8 points in May.

June figures suggest the overall index, and courier prices, are rising more slowly as we move into the summer. Looking back at 2023, July and August saw the TEG index fall. With many factors at play right now, it’s hard to predict whether the same will happen in 2024.

Industry pulse 

Many things have affected the marketplace in June. Front of stage was election campaigning. It’s likely taken much consumer and business attention as we wait to see what Government looks like in the weeks after July 4th.

The Euro 2024 Championship has been a welcome distraction for many. As some people took time off work to enjoy the matches with friends and family, demand for items such as food and drink - and perhaps even new TVs – would have grown.

Meanwhile, GfK’s Consumer Confidence Index rose once more (3 points), making it the third monthly increase since March. This is a promising step for the economy, potentially boosting demand for haulage and courier services. It will be interesting to see if this renewed confidence holds for a further month following the election.

Fuel watch 

Bucking recent trends, both diesel and petrol prices fell in June.

Diesel provided the most significant reduction, falling 4.79p in June to 151.52p per litre. This was a 3.06% monthly fall. Meanwhile, petrol prices fell 3.05p to 145.76p per litre in June. Resulting in a 2.04% reduction, this trailed, diesel but was still a positive step for the transport sector.

While the June fuel price reductions are good news, prices continue to stay above June 2023 levels. Year-on-year, diesel is 5.83p per litre higher and petrol is 2.79p per litre higher.

It will be interesting to see if we enjoy further fuel price reductions next month.

More female drivers obtaining HGV licences compared with PCV licences

Helping hauliers meet demand cost effectively, recent data paints a positive picture for the future supply of HGV drivers.

According to a freedom of information request (by training firm HGVC), there has been a 144% increase in females securing category C and C+E licences over the last decade. This compares with a 105% increase in PCV driving.

DVLA figures show that 27,200 category trucking licences have been issued to women between 2013 and 2023. This is having a positive impact on the HGV driver pool.

The industry is also attracting ethnically diverse groups and around 25% of HGVC trainees have been black, Asian, or another diverse group. The industry average is 4%.

Clearer guidance published to help haulier confusion at London’s new DVS requirements

Helping haulage companies understand compliance costs associated with the new DVA requirements, a leading university has stepped in to support the RHA.

Working in collaboration, Loughborough University and the RHA have produced a new explainer document to help hauliers understand TfL’s Direct Vision Standard.

The new DVA requirements, due to launch in October, require hauliers to comply with new Progressive Safe System (PSS) criteria in London when operating trucks of more than 12-tonne gross weight.

The document helps hauliers understand what equipment they need to fit to ensure a DVS-compliant Blind Spot Information System (BSIS) and Moving Off Information System (MOIS).

There has been confusion across the industry as some devices claiming to meet the new DVS standard do not.

The RHA welcomes the explainer document and continues to urge TfL to extend the grace period to become compliant for at least a year.

Expert insight

“There has been a lot going on through June: the build-up to the general election, some sunshine (finally), the Euros, and Taylor Swift. The courier index has a closer correlation to the fuel price, so it’s no surprise that there isn’t a consistent message from the two main TEG components with the courier index making a much less steep increase than haulage. But watch this space, as while diesel prices were generally dropping in June, Brent Crude was rising in the first half of the month.”

Kirsten Tisdale - Senior Logistics and Supply Chain Consultant - Aricia Ltd

In summary

It has been a steadier month for growth on the overall TEG Road Transport Price Index, with courier price rises particularly low. Fuel prices have, at last, started falling, but it is impossible to know whether that will continue into July. And Kirsten astutely points out that Brent Crude is rising.

While consumer confidence remains strong (potentially helping the logistics sector) we have many unknowns ahead of us. Most imminent is the fallout from the General Election and how a new government will propose to support the economy and the transport industry.

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