Latest survey shows haulage cost increases

Average haulage costs have increased by 8% since March 2012, according to the latest HGCA UK grain haulage survey.

The average cost of a 10-mile journey rose 15% to £4.92/t compared with last year’s survey and ranging from £4.54/t to £5.84/t, depending on the region.

While the average per mile cost of grain haulage for 10-mile journeys is 49p/t, for a 150-mile journey the cost falls to 9p/t, due to better fuel efficiency over long distances and the dilution of loading and tipping costs over greater mileages.

Average diesel prices across the year from March 2012 to February 2013 rose by 1% to 142.02p/litre.

“As haulage costs continue to rise, supply chains may well look at improving efficiency, with key areas including loading and tipping times as well as reducing the number of ’empty miles’ travelled,” said Jack Watts, AHDB senior analyst.

Other new ways to increase haulage efficiency for some regions could include alternatives to road transport, such as coastal vessels, for example to transport grain from the surplus regions of the South and East of the UK to the deficit regions of the North.

The survey was based on an online questionnaire by members of the Agricultural Industries Confederation, the Grain and Feed Trade Association, the Maltster’s Association of Great Britain, the National Association of British and Irish Millers, the Road Haulage Association and the Seed Crushers and Oil Processors Association.

It looked at hauliers’ most common journeys, which included distance travelled, tonnage and the cost per tonne. The figures exclude VAT and include a fixed cost per tonne to cover overheads as well as mileage-associated costs such as fuel, spare parts and maintenance.

2013 Grain Haulage Survey Results – regional reference table

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