Why freight rates to the UK are not falling as fast as the diesel price
Feb 11th, 2015
Diesel prices have fallen from an average of €1.40/litre in 2014 to €1.20/litre now. This 14% fall translates into a reduction in trailer running costs of about 3.5% or about €40 - €50 on the average import to the UK from central Europe. So why are freight prices not falling?
The main reason is the impact of the new 'Sulphur Tax' which has affected the cost of ferry crossings to and from the UK. The cost of a ferry from Dover-Calais has increased by €17.40 due to Marpol (sulphur marine pollution) regulations that came into effect on 1st January 2015. Ferry costs tend to be apportioned to the import leg of a round-trip into the UK so we expect this to add €35 to the cost of the average import. At the same time several countries in Europe have increased motorway tolls from 1st January which have added to hauliers costs.
So that is why we have not seen prices fall yet (price charts available at our homepage) but we do expect reductions as the year goes on if diesel prices continue to fall.