Seven in 10 logistics firms report increases in cost of transporting goods, according to survey
16th May 2022 14:17 - Transport and Distribution
Seven in 10 logistics firms report increases in cost of transporting goods: A survey of logistics firms has revealed that 71% have experienced increased costs when it comes to transporting goods during the first quarter of 2022, compared with the same time frame in 2021.
The Logistics UK May 2022 Performance Tracker, polled 241 respondents and revealed that all of them had experienced a rise in the cost of fuel in the first quarter.
The report highlighted that diesel prices had risen to an average of 129.03 per litre (Q1 2022) up 35.7% from 12 months earlier. Polling also revealed that 40% of the logistics firms polled said that they had seen the cost of transporting goods rise by 25% or more.
The survey revealed that the vastly inflated costs of transportation are filtering through to freight rates, with more than six in 10 logistics firms reporting increases in the cost of air and road freight rates (internationally). Half the respondents polled had also seen freight rates increase for transportation by sea as well as roads within the UK, and transportation by rail.
The survey findings suggest that the cost to transport goods paired with the cost of living are starting to impact the demand for goods, with more than a third of respondents (35%) saying that they have seen a decrease in orders in Q1, with 12% reporting that their orders have decreased by at least a quarter.
Deputy Director of Policy Information at Logistics UK, Sarah Watkins, said:
“The cost to transport goods is surging at an unprecedented rate amid significant increases in the cost of fuel.
“Activity in the logistics sector is a reliable leading indicator for the broader economy and survey reveals worrying signs. More than a third of our respondents say orders are declining, likely as a result of both rising freight costs and as consumers cut back amid a broader cost of living squeeze.”
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