More than two in five UK transport and storage firms plan to raise prices as cost pressures continue to build across supply chains, according to new data from the Office for National Statistics.
The latest Business Insights survey shows 41.1% of transport and storage businesses intend to increase prices this month.
The trend is mirrored across other sectors, with 40.5% of retailers and 35.2% of manufacturers also expecting to pass on higher costs.
The May figures represent a sharp jump from April, when just 18.6% of transport and storage firms anticipated price rises — an increase of 22.5 percentage points in a single month. Retail and manufacturing sectors also reported notable rises in pricing intentions over the same period.
Rising input costs remain a key concern. More than half (50.6%) of transport and storage firms said the price of goods and services they purchased increased in March compared with February. Comparable levels were recorded among retailers (50.9%) and manufacturers (48.5%).
However, demand appears to be softening. In March, 26% of transport and storage firms reported a fall in turnover, alongside 27.2% of retailers and 25% of manufacturers.
Global supply chain disruption is also intensifying. Among businesses affected, 46% cited conflict in the Middle East as a contributing factor — a rise of 34 percentage points since February.
Economic uncertainty is weighing on a growing number of firms. The survey found 27.6% of transport and storage businesses reported being affected, rising to 43.9% among retailers and 37.4% among manufacturers — the highest levels recorded since the ONS began tracking the measure in April 2022.
Energy costs and transport disruption are emerging as major drivers behind planned price increases. Around 34.1% of transport and storage firms pointed to rising energy prices, while 41.6% highlighted higher transport and haulage costs linked to disruption in global shipping routes.
The Road Haulage Association said that the assumption that rising fuel costs can simply be passed on to customers is not reflected in reality, according to new industry findings.
Its results from a fuel challenge survey highlighted the growing strain on commercial vehicle operators. Only 10% of operators report being able to fully pass increased fuel costs on to customers, with 65% saying they can only pass costs on partially, while more than 40% are unable to pass on any increases at all, due to fixed contracts or customer resistance.
RHA MD Richard Smith wants the Chancellor to introduce an Essential User Rebate for haulage, coach and van operators as fuel costs have surged by around 35% since mid-February.
“That gap is being absorbed by operators, and for many this is now a question of how long they can keep going,” he said.
“We’re hearing directly from businesses delaying investment, pausing recruitment, and in some cases questioning their long-term viability.
“Commercial vehicle operators are not discretionary users of fuel, which is why we’re calling for an Essential User Rebate that would provide immediate support, protect jobs and help keep supply chains moving.”
