The latest TEG Index for August 2024 reveals a significant year-on-year increase, particularly in the haulage sector, which has experienced marked growth. According to the TEG index, the overall road transport market witnessed a notable three-point increase, rising from 123.7 in July to 126.7 in August, reflecting a 2.24% growth. This stands in contrast to the same period last year, when the index saw a decline.
As the TEG report highlights, haulage prices were a key driver behind the surge, with the sector’s index climbing to 125.2, a 3.47% month-on-month rise. Compared to August 2023, haulage prices rose by 9.24%, a considerable increase over the past 12 months.
Richard Smith, Managing Director of the Road Haulage Association (RHA), attributes much of this spike to a 10% rise in haulage costs during the last year.
Meanwhile, the courier index also saw positive movement, climbing 1.8 points to 128.0, representing a 1.42% increase from the previous month. On an annual basis, courier prices were up 3.22%, according to the TEG index, further underscoring the broader upward trend across the logistics industry.
Despite sluggish retail demand during the school holiday season, as TEG notes, the overall industry experienced a turnaround that had not been seen since September 2023. The report pointed to a steady consumer confidence index, which remained stable, but also highlighted concerns over potential tax rises in the upcoming October Budget, contributing to a cautious consumer mindset.
Fuel prices, a critical factor for the transport sector, continued their downward trend in August. The TEG report shows that diesel prices fell to 147.79p per litre, a 1.7% drop compared to July, while petrol prices decreased by 1.46% to 142.33p per litre. The price reductions come as welcome news for transport operators, with diesel and petrol prices now significantly lower than the levels seen just two years ago, when they exceeded £1.80 per litre.
Registrations of new heavy goods vehicles (HGVs) also rose in the second quarter of 2024, according to the report. The Society of Motor Manufacturers and Traders (SMMT) recorded a 2.6% increase in new HGV registrations, with 11,469 new vehicles hitting the road. However, while rigid registrations rose by 9.7%, the number of articulated vehicles fell by 5.7%, suggesting a shift in market preferences. There was also an increase in zero-emission lorry registrations, up 30% year-on-year, although they still only account for 0.6% of the total market.
As concerns mount over a possible fuel duty increase in the October Budget, industry bodies have expressed alarm. The report quotes FairFuelUK founder Howard Cox as revealing that “credible information” points to a possible 10p per litre increase, which could have a significant impact on the transport sector. The RHA’s Richard Smith stressed that with HGV operating costs already up 10% in the past year, any additional fuel duty would put further pressure on the industry.