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Brexit drives up UK international road freight prices

Oct 12th, 2016

The weakening of the pound since the UK’s vote to leave the EU has significantly increased UK international haulage costs for those paying in sterling. 

Freightex CEO Tim Phillips said the UK’s vote for Brexit at the end of June was the dominating factor of the last quarter in terms of UK international road freight pricing, chiefly because it had led to an immediate drop in sterling from €1.30 to around €1.18, a fall of more than 10.2%. Although that was followed by a small period of recovery that took sterling back over €1.20, recent weeks had seen a further weakening of sterling, as speculation grows on the full impact of Brexit, with the pound now running below €1.15.

With around 80% of capacity across the Channel provided by mainland Europe-based companies, there had been the predictable effect on prices, Phillips said in his quarterly review of UK cross-Channel road freight pricing, published in Lloyd’s Loading List. “We have seen significant upward movement for UK-paying customers for all international movements,” he said.

“The export rate showed dramatic effect with an increase of 16% since the end of June, this maybe compounded by increasing export activity due to the lower exchange rate.” However, that was now showing signs of levelling off, with a slight drop back in the last week. 

Meanwhile, the increase in import rates had been “more in line with the pure exchange rate move, at around 8%. “However, this is still climbing, so we wait to see the extent of the impact,” he added.

For full article please read Lloyd's Loading List here.

Brexit drives up UK international road freight prices

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