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Haulage costs rise ahead of rates

3rd July 1997, Page 6
3rd July 1997
Page 6
Page 6, 3rd July 1997 — Haulage costs rise ahead of rates
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Which of the following most accurately describes the problem?

111 Operating costs are rising twice as quickly as rates, according to a new Freight Transport Association report.

The FT A' s Guide to Distribution Costs shows that costs are rising by about 5% a year rates are rising by 2.6%.

Last year 40% of haulage rates either remained stagnant

or fell. General haulage services were found to be particularly

vulnerable 60% of rates were unchanged or fell in 1996.

Simon Chapman, FTA manager of information services, says: "Last year's Budget increase in fuel duty alone added more than £1,000 to the cost of operating a 38-tonne artic, with fuel now representing over 25% of total costs."

Operators are facing increasingly tight delivery windows and road congestion while trying to provide higher service levels, says Chapman.

II Copies of the guide are available to FTA members; contact 01892 552274.

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