According to the Freight Transport Association, the annual cost of running a maximum weight articulated truck will top £100,000 by year-end.
"The annual cost of running a 44-tonne truck is the same as the cost of a three-bedroom house in a provincial city, for example Lincoln," said FTA chief economist Simon Chapman. "When the cost of the driver is excluded, truck operating costs average 99p a mile, compared to 40p a mile for running a Ford Mondeo."
The biggest single cost element is a driver's wage: 30 per cent of total costs at £28,500 a year taking into account employer NI contributions and subsistence payments. Insurance adds £3,500 and depreciation a further £10,000.
"The soaring price of fuel and the impact of the working time directive, which will reduce the number of hours a driver can work to an average of 48 hours a week are set to create a heady cocktail of price pressures,' said Chapman. "FTA forecasts for cost movements suggest that truck operating costs will rise by an average of 5.4 per cent in 2004 and 4.6 per cent in 2005."
According to the FTA, many hauliers still settle for informal agreements with customers. "But such arrangements are looking increasingly precarious, with their customers trying to cut costs wherever they can to offset the competitiveness pressure created by sterling riding on a six-month high," concluded Chapman.
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