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Survey on Movement of Prices
Period: 1 October 2006 - 30 September 2007
| % of total | Actual % | % movement | % of total | |
|---|---|---|---|---|
| costs | movement | in operating | costs as at | |
| 30.09.06 | Cost Category | in price | costs | 19.10.07 |
| 11.6 | Vehicle & Depreciation | 9.9 | 1.1 | 11.7 |
| 1.2 | Road Tax | Nil | - | 1.1 |
| 4.6 | Insurance | 1.8 | 0.1 | 4.3 |
| 27.8 | Driver Employment Costs | 5.9 | 1.6 | 27.2 |
| 10.9 | Repairs & Maintenance | 8.8 | 1.0 | 11.0 |
| 3.0 | Tyres: | 2.8 | 0.1 | 2.9 |
| Replacement tyres, tubes etc. | ||||
| 12.0 | Overhead Costs | 8.7 | 1.0 | 12.0 |
| 71.1 | TOTAL | - | 4.9 | 70.2 |
| 28.9 | FUEL | 11.4 | 3.3 | 29.8 |
| 28.9 | TOTAL = FUEL + OTHER COSTS | 8.2 | 100.0 |
COST MOVEMENT SURVEY NOTES
Vehicle Depreciation
This reflects the increase in acquisition costs caused by a surge in demand in Eastern Europe. Factors influencing the market include reduced vehicle availability and the mandating of expensive new technology for environmental reasons.
Driver Employment Costs
These reflect drivers’ wages, increased holiday entitlement and additional agency costs to provide replacements for holiday and sickness cover. Additional training costs are also reflected due to driver shortages and increased Health and Safety requirements.
Repairs and Maintenance
These reflect the increases in manufacturers’ contract maintenance packages and significant increases in the cost of parts.
Overhead Costs
These reflect the additional labour management costs, escalating finance costs and increases in business rates. They must be fully recognised in a professional haulage operation.
Fuel
Includes 2p additional duty on 1st October.
PERCENTAGE COSTS ARE THOSE FOR A TYPICAL 44-tonne OPERATION
