Distribution is big business here in Britain – with some 98% of all food and agricultural products moved directly by road. With so many factors to consider, from cargo weight to distance, UK haulage rates can be tricky to calculate.
If you need to transport goods across the UK, it’s best to understand exactly how the cost of distribution works.
How are UK haulage rates charged?
Some manufacturers may assume that distributors follow the haulage rates per mile UK model. This is a good benchmark, and on average we can look at guideline figures, but the reality is that it is not that simple as there are so many factors that affect rates
Vehicle type – curtain, box, fridge, tanker, high volume, lorry loaders, mixers, plant and machinery carriers, livestock, hanging meat, tippers, bulk powder carriers etc.
Another assumption is that UK haulage rates are determined by the size of truck itself. This is a myth – whether the vehicle is a large articulated lorry or a smaller 7.5 tonne lorry, there is little difference. The only exception to this would be a van smaller than 3.5 tonnes, as this can be driven by anyone, including people with an older driving licence.
There are three key factors affecting haulage rates in the UK:
- Weight versus dimensions
- Less than truckload or full truckload
- Flexibility of the journey.
Weight and dimensions of cargo
Volume also comes into play when it comes to charging for UK haulage. A box of feathers wouldn’t be using a truck to its full efficiency, so distributors will look at dimensions as well.
This is known as “volumetric weight”. The contractor will take the volume of the cargo and multiply it by 250 to reach this figure. If the truck is being used efficiently, prices will be more reasonable.
Less than truckload or full truckload
There are also cost efficiencies to be made when transporting goods. For example, manufacturers may partner with another company that is sending goods in the same direction. This can help to split costs, but there are some risks to full truckloads.
Flexibility of the journey
Speed can also affect the haulage rates per mile UK model. If you can be flexible with delivery dates, for example, if your goods are not perishable, then you may be rewarded with lower rates.
Challenges affecting UK haulage rates
With the unpredictable economic UK outlook, there may be other challenges affecting UK haulage rates:
- Driver shortages and pay increases – the ongoing effects of the pandemic have created a shorter supply of drivers, which may push up costs.
- Fuel and insurance – summer 2022 saw one of the highest increases in fuel prices, up to 45%, while insurance increased by 6 to 10%.
- Sustainability – cleaner fuels and green technology may affect costs.
Do I have to pay more for specialist distribution services?
Added to these factors, specialist distribution offers unparalleled value. For example, refrigerated haulage uses technology like data tracking to transport chilled goods.
With an experienced distributor, you can assure the safe transport of goods like food. At Dennis Distribution, we offer the most efficient service for the cost, with unrivalled customer service.