In the haulage sector, TEG recorded a 5.01% rise in prices, with the index reaching 132.1 after a 6.3-point increase in December. The year-on-year growth was even more pronounced, with haulage prices rising by 9.99%, highlighting sustained upward cost pressures.
Courier prices also followed the upward trend, increasing by 4.08% in December to 132.5 points. However, the courier sector experienced only marginal changes year-on-year, with the index 0.23% lower compared to December 2023.
December’s price hikes were largely attributed to heightened demand associated with the festive season. High street footfall on Christmas Eve surged by 31% year-on-year, complemented by a modest improvement in consumer sentiment. The GfK Consumer Confidence Index rose one point in December, with optimism about personal finances increasing by two points for the coming year.
However, inflationary pressures persisted, with the Consumer Prices Index (CPI) climbing to 2.6% in November. This prompted the Bank of England to maintain its 4.75% interest rate in December, its final meeting of the year. Businesses are bracing for February’s monetary policy decision amidst continued cost pressures.
Fuel prices rose modestly in December, marking a continuation of November’s trend. Diesel prices increased by 2.05p per litre (1.46%), reaching an average of 142.52p. Petrol prices rose by 1.43p per litre (1.06%) to 136.23p. Despite these increases, both fuel types were cheaper than a year ago, with diesel and petrol prices down 5.54% and 4.35%, respectively.
Operating costs remain a concern for hauliers. The Road Haulage Association’s (RHA) Annual Cost Movement Survey indicated a 3.51% rise in overall costs, including fuel, outpacing inflation. Furthermore, HGV driver salaries were reported to be 2.56% higher than the national average in December, adding to financial strain.
The updated National Planning Policy Framework (NPPF) has, for the first time, recognised logistics as a critical economic component. Logistics UK lauded the inclusion of freight and logistics in planning policies, calling it a significant milestone for the sector. However, RHA Managing Director Richard Smith urged further action to address longstanding issues such as lorry parking and the development of green infrastructure.
Electric vehicle (EV) refuelling costs saw notable reductions in 2024, with at-home charging costs dropping by 15% to 24p per kWh and public charging averaging 78p per kWh, according to Allstar. While the shift to EVs is ongoing, many hauliers continue to rely on diesel and petrol fleets, underscoring the need for further support in decarbonising operations.
Kirsten Tisdale, a senior logistics consultant at Aricia Ltd, noted that while the seasonal rise in transport rates was expected, the 10% year-on-year increase in haulage prices reflects persistent inflationary pressures. The Bank of England’s decision to hold interest rates underscores the balancing act required to stabilise the economy.