Cost of fuel continues to put operators under pressure, says FTA report

The price of fuel is still the biggest headache for transport companies battling to cope with rising costs, with haulage rates failing to keep up, according to a report published by the Freight Transport Association.

FTA's Manager's Guide to Distribution Costs 2011 calculates that the cost of diesel for commercial vehicle fleets rose by 15.6 per cent in the twelve months to 1 April 2011. The second biggest increase was in the cost of overheads, followed by vehicle maintenance. The total rise in vehicle operating costs to 6.8 per cent outstripped the rise in domestic haulage rates, which increased by an average of 3.41 per cent. International haulage rates increased on average by 5.40 per cent.

Bruce Goodhart, FTA research analyst, commented: “The high and rising cost of fuel continues to put companies under considerable financial pressure.  With haulage rates failing to keep up with increasing vehicle operating costs, profit margins are being squeezed and jobs put at risk, hampering economic recovery.”

The Manager's Guide to Distribution Costs is produced annually based on data supplied to FTA by a survey of member companies in April each year. The data on wages, vehicle operating costs and haulage rates is then updated quarterly.

Average cost movements for the 12 months to 1 April 2011 for rigid, articulated and drawbar vehicles:

VED  0.0%
Insurance  +1.9%
Depreciation  0.0%
Diesel  +15.6%
Tyres  +2.5%
Maintenance  +3.8%
Employment cost of driver  +3.0%
Overheads  +5.3%
Vehicle costs  +9.5%
Vehicle and driver costs  +7.1%
Total vehicle operating costs  +6.8%
Total vehicle operating costs excluding fuel  +3.0%