The RHA has warned vehicle operators not to assume current haulage costs will be sustained during 2015 when negotiating any end-of-year rate increases with customers.
Speaking to Motortransport.co.uk in the wake of an RHA report showing a 0.18% fall in total haulage costs in the year to 30 September, Nick Deal, manager for logistics development at the association, stressed that excluding fuel, haulage costs had actually risen 2% during the year - citing additional vehicle purchase prices as a result of the introduction of Euro-6 and rising driver pay settlements as a result of the driver shortage as two key reasons.
While falling average bulk fuel prices have redressed the balance up to now – falling even further since the report was prepared to around 93p/litre in mid-December - fuel costs are likely to rise soon, warned Deal.
If oil prices themselves do not rise between now and February, the Fair Fuel Stabiliser introduced back in 2012 could lead to an increase in fuel duty at that point, if the oil price has not risen back above the trigger point of $75/barrel.
“One way or the other, we’re going to get an increase,” Deal warned. “Either the price of fuel itself will go up, or we will face the prospect of duty going up.
“[Haulage] rates have increased, but frankly they are still ludicrous,” he continued. “What other line of business would go through so much pain and pay for everything up front to get 1% [profit]?
“Rates are simply going to have to go up. The costs you face have gone up and will go up again next year. So ultimately, this report really says ‘watch out!’,” he added.
- The RHA says it is expecting pay rises for drivers in the order of 4-5% during 2015, based on comments from members completing its latest pay survey, which has yet to be published. A “relatively high percentage” of respondents have admitted to problems with recruitment and retention of staff this year, said Deal, and in outlining future pay increases, some firms were now talking about numbers that were “kind of worrying”, he said.
