The Road Haulage Association (RHA) has sent out a distress signal for the industry, saying that UK haulage companies are struggling to stay afloat and dropping into administration due to unsustainable price rises recorded in 2026. The RHA said most freight businesses generated low-margins, meaning increased running costs were having a major impact.
Its experts stressed that haulage and freight companies had already been battling a stagnant economy and rising costs for up to a year. However, when asked why a series of haulage companies have fallen into difficulty this spring, the experts pointed at rising petrol and diesel costs for inflicting a fatal blow, with fuel running costs becoming simply unsustainable.
RHA external affairs director David Boot explained that fuel costs can make up as much as one-third of a firm’s total expenses.
He said: “Road freight is a low-margin industry, predominantly made up of small and medium-sized family businesses. Margins are typically 2%, which leaves very little room to absorb shocks. With a stagnant economy and further cost considerations, operators have spent the last 12 months delaying investment, consolidating operations, and prioritising survival.
“Take fuel costs alone, which account for a third of overall expenses in road transport. UK diesel prices remain much higher than most European nations, putting businesses here at a competitive disadvantage.
“Recent global events have added further pressures. Since the start of the conflict in the Middle East, average UK diesel prices have risen from around 142p per litre in February to over 190p by late April. For a typical HGV that translates to roughly £300 a week extra, per vehicle. On a fleet of even modest size, that’s simply unsustainable, particularly for operators on fixed-rate contracts who cannot pass costs through quickly enough.”
