The latest data from the TEG Road Transport Price Index has revealed that haulage and courier prices increased slightly from March to April. With haulage prices up 3.6% and courier prices up 2%, this follows the pattern of the last four years, except for the immediate aftermath of Covid-19.
Year-on-year, haulage prices are actually 2% down, but courier prices are 3.6% higher, leaving the overall index slightly up on its April 2022 level.
In the face of stubborn inflation, driver shortages and supply chain troubles, it seems falling diesel costs haven’t been enough to keep prices down.
Supply chains in the spotlight
Recent analysis revealed that the UK economy is losing £12 billion a year to supply chain issues. When supply chain costs spiral, they affect businesses’ bottom lines, which is often reflected in price rises being passed onto customers.
For example, even though haulage prices are 2% down, year-on-year, hauliers are having to charge 11% more than they did during the same period four years ago.
Businesses can lessen the impact of supply chain issues through the kind of integrated digitisation Integra offers. With a quarter of the UK’s trucks running empty, digitisation can help hauliers looking to share truck space and create efficiencies.
Lyall Cresswell, CEO of Integra, says: “Falling diesel prices is very welcome news for the industry. It reduces a day-to-day expense for everyone, making every mile cheaper. But it’s clear that there are more permanent problems affecting hauliers’ and couriers’ prices. One of those is the driver shortage, so it’s encouraging to see the government once again taking action to get new drivers on the road."
“Another issue altogether is supply chain costs. Streamlining operations through digital solutions can help greatly here, so I’d encourage any road freight transport company to build digital tools into everyday processes. Then they’ll be more able to weather any costly supply chain disruptions,” says Cresswell.
Kirsten Tisdale, Director of Logistics Consultants Aricia Limited and Fellow of the Chartered Institute of Logistics & Transport, says: “The overall TEG index usually goes up at this time of year, 2020 excepted. The courier element has always gone up in April, but this year’s increase was the smallest. The haulage element has also gone up in April but continues to be deflationary against last year – despite accusations of profiteering in this sector, this is the 11th month running for which spot rates have been lower year-on-year.”
Read the latest TEG Road Transport Price Index.
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