October witnessed a minor reduction in both haulier and courier transport costs, as per the TEG Road Transport Index.
- The index showed a 1.7-point decrease to 126.7 in October, continuing a pattern observed since previous years.
- Haulage sector prices dropped by 1.57% from the previous month, although they remain higher than the same period last year.
- Courier prices saw a slight monthly decline of 1.08%, but like haulage, remain modestly elevated year-on-year.
- Fuel prices, both diesel and petrol, have continued their downward trend, providing some relief to the transport sector.
The TEG Road Transport Index reports a 1.7-point drop in October, bringing it down to 126.7. This decline aligns with trends seen in 2023 and 2022, offering insights into transport pricing ahead of the festive season. The haulage sector specifically saw its index fall to 125.4, marking a 1.57% decrease from the previous month. Despite this, when compared to October of the previous year, the index reveals a 9.14% increase, suggesting an overall growth within the sector.
Courier transport prices followed a similar pattern with a 1.4-point reduction, reflecting a 1.08% downturn in October. Although there is a month-on-month decline, courier prices are still 1.83% higher than the same period last year. The TEG Index underscores that these developments are consistent with anticipated trends leading into the busy festive months.
The report highlights that both diesel and petrol prices have continued their downward trend, with diesel dropping by 2.68p per litre to 139.13p. This is a significant year-on-year decrease of 23.05p. Similarly, petrol prices fell by 2.83p per litre to 133.96p, representing a 13.65% reduction over the year. These reductions are seen as beneficial for hauliers and couriers, who face substantial overhead costs associated with fuel.
The transport sector also grapples with a rise in employers’ national insurance to 15% and a 6.7% increase in the minimum wage from April 2025. However, an increase in employment allowance to £10,500 offers some relief to eligible employers. The report conveys optimism, suggesting that falling fuel costs and sustained support can help alleviate some of the financial pressures on the industry.
According to Kirsten Tisdale, senior logistics and supply chain consultant at Aricia, it is quite unusual for spot rates to decline during October, which is traditionally a peak period for retailers. She notes that the current indices for haulage and courier sectors are the second highest ever recorded for October, attributing previous peaks to specific events like the driver crisis of 2021 and the impact of the Ukraine invasion on fuel prices in 2022.
The modest decline in transport costs coupled with falling fuel prices signifies cautious optimism for the logistics sector gearing up for the festive season.
