Road freight prices are at their highest for three years, according to the Transport Exchange Group (TEG).
The combination of inflation and Brexit saw prices climb to a new level in December.
Furthermore, the TEG has warned businesses of further supply chain disruption in 2022.
For example, the new EU custom checks on imports is a factor that could cause economic strain.
Specifically, the average price-per-mile for haulage vehicles increased by 5.3 points between November and December.
The TEG’s Road Transport Price Index calculated that the average has reached its highest level since January 2019.
The surge in road freight prices came during a month when inflation hit a 10-year high.
As a result of that increase, interest rates went up for the first time in three years too.
The rise in petrol prices is a big factor driving this inflation.
According to ONS figures, petrol hit 145.8ppl in November 2021.
In comparison, the fuel cost 112.6ppl a year earlier.
In other words, it represented a rise of almost 30%.
Meanwhile, retail experts are predicting a slump in economic growth in 2022.
Therefore, Omicron is expected to mean reduced spending on hospitality and more people buying goods.
As a result, there will be a continued strain on supply chains.
Lyall Cresswell, CEO of Transport Exchange Group, explained more.
“This December surge was expected, thanks to historical TEG data.
“Brexit and Covid-19 continue to be the two main headaches for the road freight industry.
“For example. Brexit has not only caused many drivers to leave the industry, it’s also resulted in much more red tape.
“And, further changes in 2022 will require businesses and logistics industry professionals to adapt yet again.”
Therefore, predicted Cresswell, delays to driver recruitment could be expected.
Three-year high for UK road freight prices reported