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Seven out of ten Logistics UK survey respondents report soaring transport costs

More than seven out of ten (71%) of respondents to Logistics UK’s Q1 Logistics Performance Tracker reported an escalation in costs to transport goods during Q1 2022 compared to the same period a year ago.

An even higher number – 95% – reported an increase in both domestic and international freight rates, while over a third (35%) reported a decrease in orders.

Covering the first quarter of 2022, the survey attracted more than 240 respondents from across 12 business sectors.


Sea freight and air freight rates continue to rise. Close to six out of ten respondents (58%) stated that sea freight rates and around two thirds (65%) reported that air freight rates had ‘increased a lot’.

As diesel accounts for around one third of the cost of running a 44-tonne HGV, the soaring cost of fuel has had an immediate knock-on effect on operating costs. Bulk diesel prices have risen by 36% in the first quarter of 2022, compared with the first quarter of 2021. In addition, 84% of respondents reported paying more for the diesel exhaust fluid AdBlue than at the beginning of the year.


Despite some improvement in the driver shortage, HGV driver roles are still the most difficult to fill with 88% of respondents reporting problems in recruiting drivers, down from 93% in November 2021. Around two thirds (64%) stated they had vacancies for HGV drivers. In an effort to retain and reward their existing drivers, more than eight out of ten respondents (81%) had raised driver pay in the past six months, with the average rise in pay being 11.9%.

Sarah Watkins, Deputy Director – Policy Information, Logistics UK, said: “With fewer respondents reporting HGVs parked up compared to a year ago, more vehicles are clearly in use and the indications are that the driver shortage has begun to stabilise.

“Now that staff shortages are beginning to plateau, we see logistics employers begin to focus on the recruitment and retention of workers.”


Published On: 26/05/2022 16:00:15


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