RHA annual cost movement survey reveals rising costs and shrinking margins for haulage industry

2025 RHA annual cost movement survey - costs higher, profits lower

With a stagnant economy showing little growth, this has been another difficult year for operators across the sector. With profits lower and overall running costs higher, the recent Budget fuel duty freeze until September will help hauliers, but the Chancellor’s decision to reverse the 5p fuel duty cut after September and the increases that follow will be a hammer blow for many businesses. Meanwhile other burdens continue to be placed on firms, meaning operators will have additional financial considerations in the months ahead.

RHA Managing Director Richard Smith said:

"In our wide-ranging survey, our members have painted a clear picture of the current challenges facing our industry. They're telling us that running costs are far too high, rising 5.91%, and businesses are telling us they're concerned about the state of the economy.

"With further companies sliding into administration this year and with profits lower, firms are still having to make savings wherever possible. For many operators, this was a year of tough decisions: delaying investment, consolidating operations, and prioritising survival.

"If the Government is serious about its objective of economic growth, they'll have to work collaboratively with an industry that's crucial to delivering it. We want to work with them to lower the costs and regulatory burdens placed on our key sector."

Key Survey findings

Operating costs rose 5.91% (excluding fuel), while margins remain wafer-thin at around 2%. Even with diesel prices easing slightly, employers faced a 6% rise in employment costs in the last year, driven by higher National Insurance and wage pressures.

Pay trends underline the pressure. The median increase for drivers was 3%, well below the national average of 5.3%. Nearly 30% of firms gave no pay rise at all.

At the same time, the industry needs 60,000 HGV drivers a year over the next five years, yet this is against a backdrop of more than 100,000 drivers not renewing their DQC last year.

Confidence is fragile. The Barclays BDO Logistics Confidence Index fell to a 14-year low, and insolvencies remain well above long-term averages despite a slight improvement on last year.

Freight crime continues to rise, costing the economy over £1bn since 2020. And while the industry continues along the road to Net Zero, 70% of HGV operators have no plans for zero-emission vehicles, citing cost as part of a range of factors as a major barrier.

ENDS

Read the full RHA cost report HERE:
RHA_Haulage Cost Movement 2025.pdf

You can also read the full pay report HERE:
RHA_Pay Report 2026.pdf