Haulage Costs Are Rising — Fuel Isn’t the Biggest Problem, But It’s the Most Controllable One

HAULAGE INSIGHTS

12/29/20253 min read

The Real Reason  Haulage Profits Are Shrinking
The Real Reason  Haulage Profits Are Shrinking

UK haulage operators— a sector we analyze in depth in our complete guide to UK haulage and logistics —are operating in one of the most financially constrained environments in recent memory.

While fuel prices eased slightly in 2024–2025, total haulage costs continued to rise, squeezing margins that were already razor-thin.

According to the Road Haulage Association (RHA):

  • Total HGV operating costs increased by 3.34%

  • Operating costs excluding fuel increased by 5.91%, well above general inflation

For most operators, this means one thing:
Even when fuel prices fall, the business doesn’t feel any relief.

The reality of haulage cost structure in 2026

To understand where the pressure comes from, we need to look at how costs are actually distributed.

For a typical 44-tonne articulated HGV (75,000 miles per year, 8.3 mpg), the RHA Cost Tables 2026 show:

  • £211,180 total annual operating cost

  • £165,822 excluding fuel

  • £604 per day in fixed (time-related) costs, before the vehicle even moves

Haulage cost share breakdown (Approx.)

  • Driver employment: ~31%

  • Fuel: ~21%

  • Overheads: ~19%

  • Maintenance & tyres: ~10%

  • Insurance, depreciation, tax, finance: remainder

Fuel is not the highest cost, but it is:

  • The most volatile

  • The most visible

  • One of the few areas where operators can still influence efficiency without renegotiating contracts or headcount

Haulage fuel costs fell - So why does it still hurt?

In 2025:

  • Average diesel price fell 4.93% year-on-year, to 107.87 ppl (ex-VAT)

  • AdBlue prices fell 11.79%

[Source: Road Haulage Association (RHA) Cost Tables 2026]

On paper, fuel relief should have helped.

In reality:

  • Non-fuel costs rose faster

  • Savings from fuel were absorbed by wages, NICs, insurance, tyres, and maintenance

  • Customers increasingly expected rate reductions because fuel prices fell

The result?
Fuel stopped being a relief lever and became a margin battleground.

The margin problem: Why small inefficiencies matter more than ever

The RHA reports that:

  • Average pre-tax profit margin in UK haulage is ~2.17%

At that margin:

  • A 1–2% efficiency loss can wipe out profit entirely

  • A small improvement in fuel utilisation can be the difference between profit and loss

This is why many operators feel they are:

  • “Busy but not profitable.”

  • Running more miles without seeing better results

  • Absorbing cost increases they cannot pass on

Fuel Efficiency ≠ Fuel Price

One of the biggest misconceptions in haulage cost management is equating fuel control with fuel purchasing.

Buying cheaper fuel helps.
But as outlined in our guide on
fuel saving tips to improve fuel economy in 2026, how efficiently fuel energy is converted into motion matters just as much — and often more.

The RHA data highlights that:

  • Fuel still represents ~21% of total operating cost

  • Even small percentage improvements in combustion efficiency—supported by verified results from FuelMarble—scale rapidly at fleet level

The Transformative Power of Fuel Efficiency for Haulage
The Transformative Power of Fuel Efficiency for Haulage

For a 44-tonne HGV:

  • Annual fuel spend is roughly £45,000

  • A 5% improvement in fuel efficiency equates to ~£2,250 per vehicle per year

  • If 10% improvement in fuel efficiency equates to ~£4,500 per vehicle per year

That is larger than the entire annual profit margin for many operators.

Why are haulage operators running out of easy levers?

The RHA reports confirm:

  1. Driver costs rose ~6% (NIC increases, wage pressure)

  2. Maintenance costs rose by ~6.5%

  3. Insurance rose ~5%

  4. Tyres face new UK anti-dumping duties, increasing costs by up to £110 per tyre

These are largely non-negotiable and externally driven.

Fuel efficiency, particularly when utilizing specialized solutions like the FuelMarble L-Size for large vehicles and fleets, remains one of the few controllable variables:

  1. It compounds daily

  2. It does not require route changes or new drivers

  3. It does not depend on customer negotiations

Why does this matter strategically? (Not just operationally)

The RHA is clear on one point:

“Hauliers must understand their true costs and focus on efficiency rather than volume.”

In an environment where:

  • Demand is soft

  • Vehicle availability exceeds freight

  • Rates are under pressure

Cost discipline and energy efficiency become survival strategies, not optimisations.

Final thought for haulage decision-makers

Fuel may not be your highest cost — but it is the cost you can still influence without restructuring your business.

In a sector operating on 2% margins,
the difference between burning fuel and using fuel efficiently is no longer academic.

It is operational resilience.

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