Haulier cost pressures revealed in annual RHA survey
The Road Haulage Association (RHA) has published the results of its Annual Cost Movement Survey, which outlines how increasing cost pressures are continuing to impact the haulage sector.
The survey results show that the costs of operating are pushing ahead of inflation, and that overall costs including fuel have risen by 3.51 per cent over the year since the previous report.
Since diesel prices have fallen since September 2023, the increase of total costs excluding fuel was 5.95 per cent.
“It is against these results that members are telling us that costs are outstripping any increases to rates and in many cases, certainly earlier in the year that rates themselves were falling,” said the report.
“The 44-tonne cost model demonstrates annual costs of £160,604 excluding fuel and additive. This is an increase of £9,025 on the previous year. Including fuel and additive gives the total annual costs for the 44-tonne of £208,397 with fuel at an average price of 113.46ppl to the end of September.”
The survey found that while fuel and AdBlue prices had fallen, the price of insurance was up 7.9 per cent since the previous year, driver employment costs up 5 per cent, repair and maintenance costs up 8.1 per cent, and tyres up 7 per cent.
The recent release of the Motor Transport Top 100 results for 2024 “continue to demonstrate the resilience required in logistics operations to stay profitable,” said the RHA. Pre-tax profit now stands at just 1.58 per cent, the association observed, compared to the 2.6 per cent recorded in the previous year.
The RHA cited a stagnant economy and low growth as key contributors to another difficult year for operators across the sector. Last year saw the collapse of nearly 500 businesses, it said, with more previously successful and highly regarded firms following this year.
While the fuel duty freeze until March 2026, recently announced in the autumn Budget, would help hauliers, the report highlighted how other burdens that have been placed on businesses – such as the rise in employers’ national insurance contributions – would mean additional financial considerations for fleets in the coming months.
In addition, it raised concerns over October inflation figures released on 20 November, which showed the consumer price index (CPI) rising from 1.7 to 2.3 per cent year on year, and the retail price index (RPI) increasing from 2.7 to 3.4 per cent.
“In our wide-ranging survey, our members have painted a clear picture of the current challenges facing our industry,” said RHA managing director Richard Smith.
“They’re telling us that running costs are too high and 66 per cent of hauliers tell us they’re concerned about the state of the economy.
“With further companies sliding into administration this year and with rising costs and much lower profits, businesses are now having to make savings wherever possible.
“If the government is serious about its objective of economic growth, they’ll have to work collaboratively with an industry that’s crucial to delivering it. We want to work with them to lower the costs and regulatory burdens placed on our key sector.”
The full RHA Annual Cost Movement Survey and Report can be found on the association’s website.
