Transport prices increase in December 2024, latest TEG Index reveals

In the haulage sector prices rose by 5.01% in December, with the index reaching 132.1 points after a 6.3-point increase. The annual change was even more marked year-on-year with haulage prices rising 9.99% according to the TEG index.

December courier prices also reflected the month’s upward trend as they rose by 4.08%, leaving the courier index at 132.5 following a 5.2-point increase.

Compared to December 2023, there was little change for courier prices, when the index was 0.3 points higher, resulting in a 0.23% fall year-on-year.

The report to the Index said: “December is always a busy month for the transport industry. It is unsurprising prices increased alongside festive demand.

“The festive season provided a welcome boost to retail sales and consumer spending while reports suggest confidence remains muted but optimistic.

“Last-minute Christmas sales saw Christmas Eve high street footfall rise by 31% compared to last year. Meanwhile the GfK Consumer Confidence Index rose one point. When considering “personal finances for the next 12 months”, it rose by two points.”

However the report warned that inflation has crept up again, running at 2.6% in November 2024, which saw the Bank of England hold interest rates at 4.75% in its final meeting of 2024.

The report also pointed to the 2024 RHA Annual Cost Movement Survey which shows increased cost pressures continue to impact operators.

The report notes: “The survey suggests operating costs are pushing ahead of inflation with overall costs, including fuel, rising by 3.51%. This won’t be helped by reports that the average HGV driver salary was 2.56% higher than the national average in December 2024.”

Turning to fuel costs the report said that following November’s fuel price increase, December saw fuel prices rise further still. Diesel prices rose by 2.05p per litre (1.46%) in December, resulting in an average pump price of 142.52p - 8.36p per litre (5.54%) which was still lower than a year ago.

Petrol prices also increased, with a 1.43p per litre (1.06%) increase in December, the report said. The average price was 136.23p - lower than 12 months ago, when petrol prices were 4.35% higher at 142.43p per litre.

“While higher fuel prices are never welcome, the December rises were modest, in line with November’s increases,” the report added. TEG also welcomed the fall in the cost of refuelling electric vehicles (EVs).

Kirsten Tisdale, senior logistics and supply chain consultant at Aricia, said: “That spot rates went up in December compared with November is hardly news, they always go up at this time of year, reflecting increased seasonal consumption, but the year-on-year increase for haulage at 10% shows that inflation continues apace in parts of the economy.

“So, it was almost inevitable that the Bank of England, with its one KPI of 2% CPI, was going to maintain interest rates at its final meeting of 2024, however painful that may be for businesses and real growth in the early months of 2025.

“The transport industry welcomed additional demand in advance of the festive season. This saw the TEG index rise by 5.7 points in December, a scenario we’ve seen before at this time of year.

“The upward trend for fuel prices has continued for a second month, but the increases remain modest. Meanwhile, inflation was higher than desired and the Bank of England held interest rates to try and address this.

“While cost pressures continue, there are reasons to be optimistic as we move into 2025. Consumer confidence is slowly shifting upwards while the economy continues to be in a stable place.

“The government, meanwhile, has started to appreciate the importance of supporting the logistics sector to enable economic growth. So yes, let’s be optimistic as we start the new year.”