Van fleets expect 'major' cost pressures over next 12 months

Major cost increases in every area of van fleet operations are being predicted, according to new findings from Arval Mobility Observatory.

During the next 12 months, more than three-quarters (79%) of van fleet operators believe service and maintenance costs will increase.

More than two-thirds (71%) of respondents expect insurance premiums to rise, along with vehicle lease rates (67%).

Some 63% are also predicting an increase in EV charging rates and tyre costs, and 61% expect petrol and diesel prices to rise.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “We’ve seen fleet price increases right across the board over the last couple of years and, as this new question from Arval Mobility Observatory Barometer shows, our respondents very much expect that trend to continue.

“In every category of expenditure, there is an assumption that prices will rise further during the next year.”

The only area where there is any slight difference of opinion, he said, is over petrol and diesel costs, with 19% saying they expect prices to stabilise against 20% who foresee a fall alongside 61% who believe prices there will be rises.

“Given the ways in which new sources of oil other than Russia are being sought following the war in Ukraine, this is quite a likely outcome,” he continued.

“However, it’s interesting to contrast that fuel situation to electric vehicle charging, where 72% expect further prices rises, perhaps as a result of having to use more public charging for eLCVs.”

The Arval Mobility Observatory findings illustrate the importance of ensuring that effective strategies were in place to minimise the impact of price rises on businesses, according to Sadlier.

“In many areas, much can be done with the help of expert advice that results in effective policies being adopted to mitigate the effects of rising costs,” he said.

“Fleets do not have to accept the situation as an inevitability and much can be achieved in terms of cost containment by employing the right measures.”

For more about the 2023 Barometer findings, click here.