News / UK hauliers see biggest freight rate rises in almost a year

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Road freight rates in the UK have seen their biggest increase in almost a year – a marked contrast to the situation in mainland Europe, where there are worries that rates have yet to find their floor.

UK rates climbed 3.3% , month on month, in September – the sharpest rise since December 2022, according to the TEG Road Transport Price Index, in part been propelled by reintroduction of the HGV levy, clean air charges, rising fuel prices and higher business charges.

The rising fuel prices are believed to have been partly behind the much-maligned u-turn of the UK prime minister to delay the bans on diesel and petrol vehicle manufacture. Rather than helping hauliers, TEG CEO Lyall Cresswell said it had the opposite effect.

“Operators appreciate political policy can change, but when you’re investing millions in new electrical fleets, you need support,” he said.

“For years, road freight companies have been urged to go greener. Even though it’s a huge, costly change for them, most operators see becoming more sustainable is a necessity. Plus, many will be keen to ditch diesel for good – purely for economic reasons.”

Noting that fuel prices were again showing signs of volatility, Mr Cresswell didn’t doubt that rates would continue to climb as the market entered its peak of October to January.

While the rate rise last month left the market still some 2.8% down on last year, TEG said rates rising earlier than the traditional peak period could be indicative of prices climbing even higher this year.

Bad news for shippers, but it has left some hauliers on this side of the Channel markedly happier than their continental counterparts. One told The Loadstar: “In this climate, the key to making money is local work, the longer-distance trips accrue additional costs and fees, which only saps the available profit on a journey.”

The most recent Upply x Ti x IRU index put contract rates in Europe down 0.2 points, quarter on quarter, for the three months to July. And although that remains 2.8 points above the same period last year, it highlights graver concerns on the spot rate side, with a 3.5 point quarter-on-quarter decline, leaving the market 7.5 points down year on year.