The average price-per-mile for haulage and courier vehicles increased by 0.4% in March and 2.8% compared to the previous year, following a significant drop at the beginning of the year.
The latest TEG Road Transport Price Index data shows that courier prices continued to fall from their mid-2022 peak, with a 0.7% decrease in March, although they have increased by 6.4% year-on-year. On the other hand, haulage prices rose by 2.2% in March, ending a two-month decline, despite diesel prices decreasing by 1.8% and narrowing the gap with unleaded prices.
The Spring Budget included the cancellation of the planned fuel duty increase, maintaining last year's 5p cut for another 12 months, which was a relief for vehicle users and businesses relying on fleets of vehicles, the report notes. However, the return of the HGV levy later this year was also announced, with a 10% discount for vehicles meeting the latest Euro VI emissions standards, encouraging companies to use newer vehicles. This puts hauliers in a difficult position, as they have to pay more for older vehicles or invest in updating their fleet to newer and greener vehicles.
Electric vehicles were not mentioned in this year's Spring Budget, which is a disappointment for an industry facing penalties for CO2 emissions due to the new HGV levy. Although a 10% discount on the levy might encourage some to switch to electric vehicles, high initial costs, expensive energy prices, and inadequate charging infrastructure remain significant obstacles.
Lyall Cresswell, CEO of Transport Exchange Group and Integra, said: “The most positive news from the Spring Budget was undoubtedly the freezing of fuel duty. It came as a welcome relief, as the industry had been urging the government to extend the cut for some time.
“It’s good to see the government responding to the needs of the logistics industry. The industry is at the heart of the economy, so minimising logistics costs can help prevent additional inflationary strains on both businesses and consumers.
“Many businesses would have liked increased investment in green energy, as the industry (like many others) is feeling the push to go greener. Pressures like these, combined with stubborn inflation, mean we could see significant rises in the future – and we’re already seeing haulage prices start to creep up.”
Kirsten Tisdale, Director of Logistics Consultants Aricia Ltd and Fellow of the Chartered Institute of Logistics & Transport, said: "The haulage element of the TEG Road Transport Price Index went up in March 2023 – no surprise there as it has been low (still lower than this time last year) and has gone up in March every year so far following the post-peak doldrums. However, the courier element went down in March – the first time it has done this, showing signs of reducing inflation rates …but just prior to oil production being cut in April, which is likely to push this element of the index back up again."