Couriers and the delivery industry have been hit hard over the last twelve months. First there was the pandemic, then came Brexit and then the price rises and shortages triggered by the virus and leaving Europe. On top of that, gas supplies have fallen so creating issues for manufacture and delivery both for the businessman and the consumer. Ultimately it looks as if the customer will be hit by increasing prices. But the good news is it does look as if prices could be stabilising.
The TEG Index For Couriers And Delivery Services
As costs have soared, businesses and consumers alike have experienced prices at new heights in the UK as driver shortages have plummeted further. But it does now seem, as evidenced by the Transport Exchange Group (TEG), that couriers and delivery businesses can breathe a sigh of relief as transport pricing appears to be finally stabilising.
The monthly TEG Road Transport Index is a great way to find out what the average price per mile is in the delivery business. From the index we can see that the delivery industry experienced the highest price per mile across all vehicles in September of this year. In October, those figures started to settle down. However, even though it appears to be stabilising, it is clear from the statistics that there has been a huge increase overall since January 2019. This date was when the first TEG index figures were published.
Increasing Prices Over The Last Three Years
Prices per mile have been increasing over the last 33 months – well before the onset of the pandemic. Rather than triggering a sudden increase in prices, the pandemic and other current environmental issues have brought pricing concerns to a new high. There are many factors to be taken into consideration for efficient transport and manufacturing processes and this includes confronting various issues which affect the smooth flow of the supply chain. But surely stability can only continue if the problematic environmental issues are controlled.
Has The COVID Crisis Peaked?
The virus is still with us but the crisis appears to have alleviated. Here in the UK, we are not currently in lockdown, travel restrictions have eased both locally and internationally and there is an optimistic feeling about dealing with COVID. However, the short-term future still remains unpredictable. With the recent detection of the Omicron variant, scientists are still unsure as to whether there is a need to return to earlier lockdown rules and regulations.
Driver Shortages Affecting Couriers
We are still feeling the aftermath of Brexit and it seems that new issues seem to appear every day. However, in-roads have been made into making it easier for European drivers to once again work in the UK (further talks and the issuing of visa’s etc.) and also, in our own industries, the powers that be are more aware of enhancing training courses for HGV drivers and attracting a younger employee. Also, managers have had to revisit wage levels due to internal employee pressure. A focus on wage levels for couriers and delivery drivers will no doubt attract more to the industry.
Gas Supplies, Couriers and Delivery
Prices continue to rise and again look unpredictable in the near future. Part of this sudden increase has been put down to the problems with gas supplies (which affect businesses as well – not just residential customers heating their homes). This supply issue has meant manufacturing has suffered and of course delivery of essential ingredients and finished products via couriers has also been a problem in some industries.
But while many were expecting a bleak Christmas, the fact is, as the TEG index seems to suggest, things appear to be settling down.
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