The Freight Transport Association (FTA) has revealed that vehicle operating costs in the 12 months to April 2003 rose by 6.1 per cent for a 40-tonne gvw artic lorry and by 5.8 per cent for a 17t rigid lorry. The figures are from the FTA's 'Manager's Guide To Distribution Costs' and are the biggest increase operating costs in 10 years.
The rise can be attributed largely to the 11 per cent year-on-year rise in fuel costs. Diesel product prices have risen due to market concerns over oil supplies during the war with Iraq. Other factors include increases in insurance premium by 7.9 per cent and drivers' wages by 5.2 per cent.
FTA economics analyst Rachel Hare said: 'FTA's forecast for the rest of 2003 and 2004 suggests that there is some let-up around the corner, although costs will continue to outpace headline inflation.'