The latest update from the CX Price Index
The latest CX Price index data shows average courier prices increased once again in June 23, by 2.03%. It’s the third price increase in as many months, possibly reflecting the industry’s current battle with runaway inflation.
Despite ongoing, excess inflation, both petrol and diesel prices fell in June 2023. Petrol prices fell by 1%, while diesel prices fell by a much more drastic 5.8%. The drop in diesel prices means diesel is now only slightly more expensive than petrol at the pumps, which is welcome news for an industry that remains largely diesel-powered.
Still, all is not rosy for the courier industry, as the wider inflationary environment continues to squeeze profits. The UK government and the Bank of England are continuing to combat inflation, and the Bank of England raised base interest rates once again in June in a fresh effort to achieve the aim.
Curbing inflation may eventually control courier costs. Still, unexpectedly high interest rates are now squeezing public spending, which has reignited fears of a looming recession. If the fears materialise, demand for couriers will inevitably decrease. On the one hand, couriers need inflation to fall. If that means a recession, however, any resulting celebrations would be short-lived.
“[T]he silver lining right now is significantly lower diesel prices,” said Lyall Cresswell, CEO of Courier Exchange parent brand Transport Exchange Group. “The industry has long been calling for lower prices and now they’ve finally come, which will at least help with everyday business costs.”
The CX Price Index will continue to track changes in courier prices throughout July 2023 – and beyond.
