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Road transport prices still rising, but at  slower pace, TEG index for June shows

The TEG Road Transport Price Index saw a modest increase in June, following a strong rise in May. The overall index rose by 1.45% to 125.6, lower than the year-on-year increase of 2.69%.

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According to data from Transport Exchange Group, haulier prices continued their upward trend, increasing by 2.93% in June, although this was again lower than the annual percentage change of 3.98%. In contrast, courier prices remained almost flat, with a minimal increase of 0.23% compared to a significant rise in May.

This slowdown in price increases, particularly in the courier sector, could be attributed to various factors, including the recent general election and the Euro 2024 Championship, as noted by TEG. However, a rise in GfK’s Consumer Confidence Index suggests a potential boost in demand for haulage and courier services, which could influence future price trends.

Fuel prices, a significant cost factor for the transport industry, saw a welcome decrease in June, the TEG report adds. Diesel prices fell by 3.06% to 151.52p per litre, while petrol prices dropped by 2.04% to 145.76p per litre. Despite these reductions, fuel prices remain higher than in June 2023.

“There has been a lot going on through June: the build-up to the general election, some sunshine (finally), the Euros, and Taylor Swift. The courier index has a closer correlation to the fuel price, so it’s no surprise that there isn’t a consistent message from the two main TEG components with the courier index making a much less steep increase than haulage. But watch this space, as while diesel prices were generally dropping in June, Brent Crude was rising in the first half of the month,” Kirsten Tisdale, a Senior Logistics and Supply Chain Consultant at Aricia Ltd, commented on the complex interplay of factors influencing the market.

In a positive development for the industry, there has been a significant increase in the number of women obtaining HGV licenses over the last decade, according to data obtained by training firm HGVC. This promising trend indicates a growing diversity within the HGV driver pool, which could help address the ongoing driver shortage issue.