In a remarkable development, May witnessed a marked increase in the prices of courier and road haulage services, as evidenced by the TEG Road Transport Index. This uptick, at levels unseen since 2021, reflects broader market trends.
- The TEG Road Transport Index recorded a 3.36% monthly increase in May, with the index standing at 122.8, marking a significant rise from April.
- Both courier and haulage services experienced price increases, with courier rates rising by 3.09% to 126.7, and haulage prices by 3.4% to 118.5.
- The fluctuations are partially attributed to the occurrence of two bank holidays in May, tightening work schedules and affecting trading conditions.
- Modest changes in fuel prices were noted, with petrol prices experiencing a slight increase and diesel prices showing a minor decrease.
The TEG Road Transport Index revealed a significant increase in transportation costs during May, with the overall index climbing to 122.8, a 3.36% rise from the previous month. This increase is notable given its parallel to a year-on-year rise of 3.02%, reaching levels not seen since 2021.
Courier services saw their rates surge by 3.8 points, culminating in a 3.09% rise to an index level of 126.7. Similarly, haulage rates rose by 3.9 points, which translates into a 3.4% hike, aligned with the overall trend in the index, with the haulage index reaching 118.5.
According to TEG, the trading conditions in May were particularly influenced by the presence of two bank holidays, which invariably compressed the number of working days and thereby exerted upward pressure on prices. Additionally, the slower trading conditions in April, partly due to adverse weather and prevailing economic pressures, likely contributed to the heightened demand in May.
Regarding fuel prices, the TEG’s Fuel Watch indicated only modest adjustments. Petrol prices saw a marginal increase of 0.74p, equating to a 0.49% rise, bringing the price to 148.81p per litre. In contrast, diesel prices experienced a slight decline of 0.52%, although the year-on-year figures showed a steady increase, highlighting the complex dynamics of fuel pricing.
Kirsten Tisdale, a senior logistics consultant at Aricia, observed that both courier and haulage spot rates had reached unprecedented levels for the month of May. She noted that the latest Consumer Price Index for April suggested courier rates appeared reasonable, while haulage prices seemed relatively moderate compared to consumer prices. “The decisive increases in the TEG Index,” she stated, “mirror broader consumer confidence trends,” which are expected to strengthen logistical operations across the nation in line with seasonal adjustments.
The observed increases in transportation and fuel costs in May 2024 point to significant market adjustments, influenced by seasonal and economic factors.
