October saw a marginal fall in both haulier and courier prices, according to the TEG Road Transport Index.
The index fell 1.7 points to 126.7 in October, reflecting a trend seen in both 2023 and 2022.
In the haulage sector, the index slipped to 125.4. This was a 2 point (1.57%) fall. However, year-on-year, the index for hauliers was 9.14% and 10.5 points above October 2023.
The October index for couriers saw a slightly lower month-on-month fall, compared to the haulage sector. Courier transport prices fell 1.4 points to 127.8, this 1.08% drop was slightly less than hauliers saw.
Compared to October 2023, courier prices were just 1.83% and 2.3 points higher last month.
TEG said the index demonstrated October performed as expected, ahead of the busier festive season.
In its report accompanying the TEG Index, the company said: ‘‘There’s no doubt consumer confidence feels subdued right now. In the weeks running up to the Budget, speculation was rife about how the government might fill the reported £20bn black hole. This did nothing to lift the mood of the nation.
It added: ‘‘Now we’re the other side of the Budget, and with Christmas and Black Friday ahead of us, consumers should start to feel more optimistic. Christmas spending begins early for many, which presents an opportunity for the transport sector delivering goods to the right locations.
The report also noted that both diesel and petrol prices continued to fall during October.
Diesel dropped 2.68p per litre (1.89%) to 139.13p. Year-on-year, the price has plunged 23.05p per litre.
The report stated: ‘‘In October 2023, diesel prices were 162.18p per litre. This 14.21% fall will be welcome news to both hauliers and couriers.”
Meanwhile, petrol prices fell 2.83p per litre in October to 133.96p per litre. The year-on-year reduction is more marked at 13.65%, a 21.17p per litre reduction.
‘‘Falling fuel prices have become the norm in recent months. This, plus the continued freeze on fuel duty announced in the Budget, should give the industry some comfort,” the report said, adding: ‘‘Hauliers are key to economic growth, and this should please the transportation industry, where fuel costs can account for up to 30% of overheads.”
The report also noted that while businesses face additional costs from the rise in employers’ national insurance to 15%, and a 6.7% increase in the minimum wage from April 2025, the Chancellor also confirmed an increase in employment allowance to £10,500, extending this support to all eligible employers.
Commenting on the TEG Index findings, Kirsten Tisdale, Aricia senior logistics and supply chain consultant, said: ‘‘It always feels a bit surprising when spot rates move down in October as we enter the golden quarter for retailers and towards peak, but that’s exactly what they’ve done all years other than 2020 since the TEG indices were introduced.
‘‘Both of the TEG haulage and courier indices are the second highest we’ve ever seen in October, and that makes sense – haulage was higher in 2021, the year of the driver crisis, and courier was higher in 2022 when fuel prices had been pushed up by the Ukraine invasion.
‘‘The fuel price is back to a level last seen in 2021 - and, we now know, not about to suffer a duty increase.”
