FTA guide reveals biggest costs for operators 28 June 2011

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

The FTA's Manager's Guide to Distribution Costs 2011 calculates that the cost of diesel for commercial vehicle fleets rose by 15.6% in the 12 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% outstripped the rise in domestic haulage rates, which increased only by an average of 3.41%, with international haulage rates growing on average by 5.4%.

"The high and rising cost of fuel continues to put companies under considerable financial pressure," comments Bruce Goodhart, FTA research analyst.

"With haulage rates failing to keep up with increasing vehicle operating costs, profit margins are being squeezed and jobs put at risk, so hampering economic recovery," he adds.

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 updated quarterly.

Author
John Challen

Related Companies
Freight Transport Association Ltd

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