Courier prices rise as the pound takes a tumble

The latest update from the CX Price Index 

Average Exchange courier prices increased by 2.5% in September, edging courier prices close to record highs.  

That’s according to the latest CX Price Index, which at the end of September clocked courier prices at 131.4 points – up from 128.2 at the end of August. 

The notable price increase coincided with record lows in the value of the pound. Some believe the two are likely to be linked, as weak pounds buy less fuel from overseas.

Christmas creeping closer probably added to the increase: Every year, in the run up to Christmas, prices for courier services tend to rise. 

The government scrapping a planned reduction in higher-rate taxes reversed the tumbling pound’s fortunes in early October, which may bring some stability to courier prices going forward. Still, with inflation running far higher than we’ve seen in recent years, prices for couriers may reach record highs before the year ends.  

Lyall Cresswell, CX CEO, said: “While the pound’s fall is undoubtedly adding to instability and inflation, the road freight industry is in good shape to meet any upcoming challenges head on.  

“Much will depend on how quickly financial markets stabilise – and the transport industry will certainly be watching this closely – but the sector has shown before that it can weather any storm.”   

Kirsten Tisdale, Director of Logistics Consultants Aricia Limited and Fellow of the Chartered Institute of Logistics & Transport, said: ”What businesses need, probably more than anything else, is a stable environment in which to plan and manage: stable exchange rates to buy goods and commodities, stable supply base and prices, access to a predictable volume of labour, stable interest rates to quantify investment decisions. 

“To say that there continues to be a great deal of uncertainty at the moment is to put it lightly!” 

The Bottom Line 

In the current environment, it’s hard to say which way prices will move from one month to the next. The CX Price Index, however, will continue to give CX members a good idea of how much courier services should cost.