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Running costs for 44-tonner

15th November 2007
Page 18
Page 18, 15th November 2007 — Running costs for 44-tonner
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Which of the following most accurately describes the problem?

increase by 80/0 in one year

Rising fuel prices, wages and repair costs are to blame — and the RHA predicts that worse is to come. David Harris reports.

THE COST OF RUNNING a truck has risen by more than 8% in a year, according the latest annual Road Haulage Association (RHA) cost survey, covering 1 October 2006-30 September 2007. This includes increases in fuel, wages, repairs and depreciation.

The biggest single reason for the 8.22% rise was the increase in the cost of fuel, followed by repairs, maintenance and the cost of drivers (as well as pay this included increased holiday entitlement and training costs due to health and safety laws). The RHA based its calculations on a typical 44-tonner it warns that new trucks are also becoming more expensive now that order books are full until the start of 2009.

It expects costs to keep rising because of the shortage of trucks and their increasing sophistication. It also predicts the driver shortage will continue, with the average age of drivers rising.

Chief executive Roger King says: -It is clear that road haulage costs are under extreme pressure. We have concerns for the cash flow of hauliers which have to pay for fuel now but which may not be paid by their customers until the new year "The industry faces an uncertain outlook, with volatility in key areas of cost and no end in sight to exceptional lead times for new trucks."

And he points out that many new trucks are heading for Eastern Europe, where operators can buy diesel with half the rate of duty of UK fuel.

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Organisations: Road Haulage Association

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