Transport prices rose in August as transport demand increased, according to the latest monthly price index from the Transport Exchange Group (TEG).
The TEG Price Index increased by 2.3 points (1.81%) in August, reaching 129.7. The index now sits 3 points (2.37%) higher than in August 2024.
The Haulage Price Index experienced an even greater increase in August, rising 3.2 points (2.53%) to 129.7, which was 4.5 points (3.59%) higher than August 2024.
Meanwhile, the Courier Price Index rose by 1.5 points (1.17%) to 129.7. It now stands at 1.7 points (1.33%) higher than this time last year.
Coincidentally, all three price indices reached 129.7 in August, although performance differed by sector.
The report accompanying the latest TEG Price Index said that heightened demand is driving the rise, outweighing increase in supply.
During August, overall transport demand increased by 6.26%, placing strong upward pressure on transport prices, the report revealed.
Meanwhile, an overall supply-side boost, as evidenced by the number of quotes registered via the TEG platform, placed conflicting downward pressure on transport prices.
The report added that, while the increase in transport supply was unable to negate price increases entirely, it did restrict their advance.
It concluded that, had the supply shift not taken place, prices would have climbed higher still.
Looking specifically at artics, demand grew by a marked 13.31% in August. Meanwhile supply rose by 14.63%, the price index revealed.
The relative shifts in both artic supply and demand left artic prices 3.8 points (3.20%) higher than in July 2025.
The report said that factors affecting supply and demand included the Bank Holiday weekend and the continued warm weather, which helped drive consumer demand during August.
Coupled with these seasonal factors, the Bank of England reduced base interest rates to 4%.
However, the report noted that on the supply side HGV driver shortages coupled with annual holiday leave, left operators under pressure to meet demand.
It added: “It’s likely that driver shortages have impacted HGV driver pay, too. Adzuna reported the average HGV driver salary rose to £42,121 in August – the second consecutive month HGV driver pay outstripped the UK national average.”
The report also pointed to data from the Society of Motor Manufacturers and Traders (SMMT) which shows that new HGV registrations in Q2 were down by 11.2% year-on-year.
This, combined with existing shortages, suggests artic supply may remain restricted for some time to come, the report warned.
