Hauliers feel the high fuel price squeeze
The high cost of fuel remains the biggest cause for concern amongst haulage operators, according to the July 2011 update of the Freight Transport Association's Manager's Guide to Distribution Costs.
Commercial vehicle and truck operators continue to be squeezed by rising operating costs whilst facing pressure on haulage rates and lengthening payment terms from customers.
Due in no small part to an increase in diesel prices of 12%, the Freight Transport Association's latest update calculates that, on average, vehicle operating costs for rigid, articulated and drawbar vehicles have risen by 5.6% in the year to 1 July 2011 and remain close to the all-time highs recorded as at 1 April 2011.
By contrast, increases in haulage rates have not matched the rise in operating costs. According to calculations in the FTA update, domestic haulage rates have risen by an average of just 1.8 per cent in the six months to 1 July 2011 and international haulage rates have risen by an average of just 1.5 per cent in the same period. Just over half of the contributors to the update indicated that they had not increased their haulage rates since the start of 2011.
Bruce Goodhart, FTA Research Analyst, commented: “Hauliers were able to ride out the recession by reducing margins and delaying vehicle replacement. However, they are continuing to feel the pinch with rising input costs, the high price of fuel and pressure from their customers not to increase charges. Economic growth is currently very weak in the UK and it is likely that some hauliers may not be able to sustain their business in these circumstances.”
FTA’s Manager’s Guide to Distribution Costs is produced annually based on data gathered from a survey of FTA members in April each year, as well as data from other independent sources. The data on wages, vehicle operating costs and haulage trends is then updated quarterly as at 1 July, 1 October and 1 January.
