Little late rise likely predicts Henley centre
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A COST and price survey says that rates in the four-tosix ton, and 16-to-20 ton pay load ranges, will only rise roughly in line with inflation this year.
The Henley Centre for Forecasting's quarterly costs and prices survey gives projections for these two ranges, • and forecasts that they will both keep pace with the estimated inflation rate of 5.7 per cent.
The four-to-six ton payload range looks slightly healthier with expected rates rises of 6.3 per cent for the year.
And reflecting higher prices, and some imprived industrial output, from 1986 to 1990 rates will on average by 8.5 per cent year, the centre says.
Operators are also likely to face steep yearly increases in their fuel, drivers' and maintenance costs from 1988, the report says.
Fuel, which makes up around 20 per cent of an operator's costs, is expected to rise by 5.4 per cent this year, reaching fuel costs will be acceletating at almost 11 per cent a year, reaching 12.6 per cent in 1990.
The centre blames higher world oil prices, and a depreciation of sterling after 1986 which will filter through to extra high oil costs for the UK.
The centre predicts drivers' wages, which make up around 25 per cent of total costs, are estimated to increase by eight per cent this year, and gradually rise to 10.2 per cent per annum by 1990.
Maintenance costs including tyres will rise by a total 47.9 per cent this year, and rise by just under 10 per cent in 1990. Maintenance costs arc estimated to make up around 16 per cent of total costs.