Among calls for more action to address driver labour shortages, the TEG Road Transport Index, set to be released monthly, reveals the latest industry data on price-per-mile in the road transport market — from the Transport Exchange Group (TEG).
This new transport industry index highlights the data behind spiking demand for UK courier and haulier services. Before stabilising in October, the sector experienced the highest price-per-mile average across all vehicle types in September 2021 — a 21.8 point increase compared to September 2019, and a 26.1 point increase on September 2020.
The TEG Road Transport Price Index, compiled by the Transport Exchange Group since January 2019 from over four million aggregated and anonymised transactions (representing over 8,000 member businesses), reveals unique data on pricing in the road transport market covering haulage and courier services.
The price-per-mile average is currently at its second highest level in 34 months, since data was first collected in January 2019. Year-on-year (October 2020 to October 2021), the price-per-mile average across haulage and courier services has surged by 24 points.
Year-on-year (October 2020 to October 2021), the haulage industry has experienced the steepest rises, with prices surging by 34.2 points. Courier services have also seen sharp year-on-year price-per-mile increases, jumping by 15.8 points.
The Index also reveals that the overall price-per-mile average hit its lowest point in May 2020, soon after the first UK lockdown began.
The TEG Road Transport Price Index will be updated monthly, with a new report released on the third day of every month — for policy makers, those operating in the transport industry and those writing about it.
Lyall Cresswell, CEO of Transport Exchange Group, says:
“Demand for freight transport drivers and fleet capacity is unprecedented, with various factors meaning it will remain high for quite some time. We’ve been able to chart the rise in demand with our price-per-mile data and the TEG Road Transport Price Index will allow anyone to take the pulse of the industry. Based on the breadth and depth of this data, we believe that this is the most authoritative and real-time price index ever published in the UK road freight industry. Month-on-month, it will provide vital insight into the state of a market that’s integral to the UK’s economy.”
Kirsten Tisdale, director of logistics consultants Aricia Limited and Fellow of the Chartered Institute of Logistics & Transport, says:
“The TEG Road Transport Price Index is one to watch going forward, as it is so real time in such a changeable supply chain environment. Any price index is influenced by several factors: underlying cost changes; availability/capacity of the market; and demand for the service.
The key influencers for the TEG Road Transport Price Index have often been changes in the cost of diesel and demand levels for road transport. Driver pay will also have been an element contributing to the rise from Spring 2021 onwards, but it looks as if potential overheating of transport rates is now abating, although there may yet be further pent up demand.”