The latest figures from the TEG Road Transport Price Index show a sharp fall in the total price per mile for freight and courier vehicles in January 2024. This figure is not only the lowest recorded since March 2023 but also represents a 2.5-point fall from the previous year.
The January Road Freight Index, published by the Transport Economics Group (TEG), shows a significant fall in road freight prices after the Christmas period.
According to the newly released figures, the overall price per mile for haulage and courier vehicles fell from 127 to 116.2, marking the lowest prices since March 2023. This represents a fall of 2.5 points on the previous year.
TEG found that both haulage and courier prices experienced similar decreases compared to December, with haulage prices falling to 109.7 (from 120.1) and courier prices falling to 122.5 (from 132.8). This trend is in line with previous years, when prices also fell after Christmas, due to lower fuel prices and the end of the peak season.
The UK road freight industry remains relatively unaffected by the escalating Houthi attacks, with oil supply meeting demand despite supply chain disruptions, TEG adds. However, contingency planning is underway in case the crisis has a significant impact on the market, potentially leading to fuel shortages.
Fuel prices have fallen for the third month in a row, according to the analysis, providing some relief to hauliers facing significant expenditure in the coming year. Petrol and diesel prices are significantly lower than the same period last year, with petrol prices 12.87% lower and diesel prices 28.27% lower than in January last year.
TEG is also keeping an eye on the road haulage industry’s moves towards a more climate-friendly operation. According to the report, the industry is performing well in this area, with recent commitments by industry leaders such as Daimler Trucks to explore liquid green hydrogen supply options demonstrating ongoing efforts to move towards zero emissions. Developments in autonomous trucking are also underway to improve efficiency and reduce carbon emissions, although concerns remain about potential job losses among truck drivers.
Another area where TEG is monitoring developments is the government’s road resurfacing programme, announced in November. According to the research, the programme has made limited progress, raising concerns among road freight operators.
As the UK’s roads continue to deteriorate, the industry remains vulnerable to significant repair costs, warns TEG, adding that while hopes are high for progress in 2024, the historically slow implementation of transport policy could lead to further delays.
