Haulage prices rose “significantly” in August, according to the TEG Road Transport Index, which it is attributing in part to the 10% jump in haulage costs over the past year.
The index experienced a notable three-point rise in August, moving from a baseline of 123.7 to 126.7 in just 31 days. The 2.24% increase contrasts with August 2023, when the index fell.
The haulage sector saw a particularly strong rise, surging to a final index value of 125.2. Month-on-month, that equates to a 4.2-point (3.47%) increase.
In addition, year-on-year haulage prices were 10.6 points (9.24%) higher than figures seen in August 2023.
The report to the Index pointed to RHA’s recent reports of haulage costs rising by 10% over the last 12 months, which it said could account for much of the annual price change.
Meanwhile, the courier index also rose by 1.8 points in August, to 128.0 marking a 1.42% increase. Annually, the courier index was up a full four points (3.22%).
While respective price rises differed, all index markers were up in August – an about turn not seen since September 2023.
Turning to fuel costs the report to the index noted that diesel and petrol prices fell in August, continuing the previous two months’ downward trend.
“With fuel costs typically making up a third of operating costs for transport businesses, falling fuel costs are welcome news,” it added.
Diesel dropped to 147.79p per litre in August. This was a 2.56p fall on the July price, representing a 1.7% reduction. Compared to August 2023, when diesel was 151.07p per litre, the price was 3.28p lower last month.
Petrol pump prices also fell, dropping by 2.11p in August, to 142.33p per litre – a 1.46% reduction. Year-on-year petrol prices also dropped.
In August 2023, the petrol price per litre was 148.52p – 6.19p (4.16%) greater than current petrol prices.
The report added: “It seems hard to imagine that, only two years ago, we saw both diesel and petrol prices above £1.80 per litre. With more stable supplies, at least for the moment, transport operators will hope the downward trend continues.”
Looking to the future the index report said: “Moving into autumn, it will be interesting to see what the currently level consumer confidence does, especially after the October Budget which may introduce a fuel duty rise.
Commenting on the findings, Kirsten Tisdale, Aricia senior logistics and supply chain consultant, said: “Back in July, we had the Euros which, although England didn’t win, encouraged some spending.
“We’ve had Taylor Swift who, during this summer, generated an estimated £1bn for the UK economy.
“However, retail demand overall hasn’t been great. We’ve just had news from the British Retail Consortium that shop prices are down. That appears to be stock clearance rather than genuine removal of inflation.
“The TEG index for haulage has made a sharp rise compared with the last couple of years. From a logistics viewpoint, stock clearance still equals volume to be shifted and that will also be making space for early containers coming in from the Far East.”
