The UK haulage market saw further price increases in May, with the TEG Road Transport Price Index rising 4.4 points (3.55%) month-on-month to reach 128.2. This represents the same percentage increase as recorded year-on-year, signalling sustained upward pressure across the sector.
The index, compiled by the Transport Exchange Group, tracks monthly fluctuations in UK road freight pricing.
Haulage prices rose faster than the overall index, climbing 4.6 points (3.72%) in May to reach 128.3—up 7.63% compared to May 2024. Courier prices also increased, though at a slightly slower rate of 3.31%, ending the month at 128.0. Year-on-year, the courier index showed no change.
For the first time since January 2022, the haulage index overtook the courier index, indicating a shift in demand trends. The price index for 13.6m articulated vehicles also increased, rising by 4.1 points (3.5%) in May to reach 120.0. This followed a stronger rise of 5.5 points (4.67%) in April.
According to the TEG Index, the supply of articulated vehicles continued to decline year-on-year, although the rate of decrease eased slightly. April recorded a 10% drop in artic supply, followed by a 9.2% fall in May—marking a two-month downward trend that does not align with 2024 patterns.
Despite falling fuel costs, other inflationary factors are contributing to rising transport prices. Diesel prices averaged 139.06p per litre in May, down 2.63p (1.86%) from April and 17.25p (11.04%) lower than a year ago. Petrol prices followed a similar trend, averaging 132.40p per litre in May—1.6% lower than in April and down 11.03% year-on-year.
Labour costs are also rising. Early estimates from the Office for National Statistics indicate a 6.4% year-on-year increase in average pay in April, while data from Adzuna suggests HGV 1 driver salaries rose by 11% in May.
“It’s been a very active month for road transport news,” said Kirsten Tisdale, Senior Logistics and Supply Chain Consultant at Aricia Ltd. “HGV new registrations are down in Q1, truck repair costs are up, and early estimates show pay rises for drivers. All of these will have an inflationary impact, even with the relatively low diesel price, so it’s no surprise to see that the TEG haulier index is up by 7.6%.”
Macroeconomic indicators also suggest increasing confidence. The Bank of England’s May interest rate cut to 4.25% may help ease business costs, while the GfK Consumer Confidence Index rose by three points. In the latest ONS Business Insights and Conditions Survey, 18.4% of businesses expected performance to improve over the next 12 months, compared to 14.7% who anticipated a decline.
External trade factors are also shaping the market. The US announcement of tariff increases in early April has reportedly led to a rise in strategic shipments. The UK was among the first to strike a deal with the US, contributing to predictability in import flows. A recent HSBC UK survey of 92 logistics firms found that 75% expect to be impacted by global tariff and policy changes, with 28% delaying investments and 10% accelerating them. A further 14% reported diversifying services or entering new markets in response.
With strong haulage demand persisting into the summer and supply constraints continuing, further price increases are possible. Seasonal factors such as warm weather and increased consumer activity during bank holidays are expected to support elevated demand in the months ahead.
