Road freight prices rose unexpectedly in November, marking the first pre-Christmas November increase since 2019 according to the latest data from the TEG Road Transport Price Index.
The overall price per mile jumped 1.4% from October's figure of 120.5 to 122.2 in November. This rise was largely driven by courier prices, which saw a 2.0% monthly increase from 125.5 to 128 points. Haulage prices also ticked up 0.5% month-over-month, rising from 114.8 to 115.4.
Despite rising freight costs, current fuel prices have dropped heading into the peak holiday season. Petrol is now at £151.02 per litre, down 2.65%, while diesel sits at £158.97 per litre, a 1.98% decrease. This cost relief comes on the heels of UK legislation improving fuel price transparency.
The pre-Christmas rise in road freight pricing comes during an exceptionally challenging period for many UK hauliers. Data shows insolvencies have doubled over the last 12 months compared to two years ago.
Transport Exchange Group CEO Lyall Cresswell said: " “We’ve seen rising prices over the last month, when typically prices experience a dip at this point in the pre-Christmas busy season. It will be interesting to see if this head start in prices rising pushes December prices up even further. Fortunately, fuel prices are continuing to drop and road freight prices remain lower than last year, so we are entering 2024 with cautious optimism.
“As we look towards next year, we’re hopeful that government promises to the haulage sector will be upheld and that we will see notable progress in the proposed initiatives to accelerate net-zero efforts.
Kirsten Tisdale, Director at Aricia Limited and Fellow of the Chartered Institute of Logistics & Transport, said: “Despite volumes being (a very believable) 10% down this year according to Richard Smith, Managing Director of the RHA, and diesel being deflationary compared to a year ago, the TEG haulage price index rose very slightly, narrowing the gap on last year’s figure.
“The courier index was more buoyant, nearly closing the recent gap against last year, which may have something to do with the timing of Black Friday.”