Cost rises slowing down, says FTA
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)AD TRANSPORT costs showed their lowest quarterly rise for two ars in the three months to September 1980, and the Freight ansport Association says that the rate of cost increases has opped sharply.
Looking at total operating .sts for the three month period, le to 13 ton gvw vans showed e greatest increase in total :crating costs. They went up , five per cent, while 13 to 16nners went up 4.2 per cent, id 20-26 tonners by only 1.7 :r cent, For the year to September 1 ese same categories showed :rcentage increases of 16.6, '.1, and 16.3 per cent respectidy. Top-weight (30-32-ton) ar :s showed a three month inease of 3.9 per cent, and an inual jump of 17.9 per cent.
The FTA says that the reduc)n in the rate of operators' infdon has been caused largely
f a drop in vehicle standing id running costs. In the three onth period, nine to 13-ton:rs showed a 1.5 per cent inease in these costs, 13-16 ton:rs went up by two per cent, )-26-tonners, helped by freak )ures in June, rose by only 0.2 .1r cent, and 30-32 tonners by 1 per cent.
For the complete year, these itegories rose by 15.5, 15.9, 5.7, and 17.6 per cent respectifly.
Dery rose by around 1.1p per Jarter, rising from an 87.2p per gal in September 1979 to 105.8p in September 1980. This, inevitably, remains a major factor in operators' costs.
Drivers' wages had risen by 18 per cent in the three months to September 1, and there can be little doubt that recent settlements, however low, will influence the next set of FTA cost figures.
FTA researches suggest that rate cutting is not as rife as some may believe, although the Association does say that it is oc'curring in the spot market. It points more to cuts in real terms, where operators are reluctant to increase their rates in line with inflation. It points to a virtual standstill on rate movements in the three months to September 1, and says there were as many reductions as increases.
For loads of four to six tons, eight per cent had their rates reduced, 84 per cent had rates unchanged, and eight per cent increased. For 16-20 tons, nine per cent had their rates reduced, 83 per cent remained the same, and' eight per cent were increased.
This works out at an 0.4 per cent overall decrease for the smaller loads, and an 0.3 per cent decrease for the larger loads.
As most increases were below 2.5 per cent, and reductions average out at eight per cent, there was a small overall decrease in the average rate.