Contract Haulage

Sourcing contract haulage with confidence

What is contract haulage?

Contract haulage is an arrangement where a shipper commits to using allocated vehicles and drivers from a haulage operator for an agreed period, usually against agreed service levels and pricing. It differs from spot haulage because each movement is not priced separately at the time of booking, giving the buyer greater control over capacity and planning.

Contract haulage compared with spot haulage

For businesses moving dependable weekly volumes, contract haulage can provide the committed capacity needed to keep supply chains running. A haulage contract allows operations and logistics teams to plan around known vehicle availability, agreed delivery patterns and more predictable haulage costs rather than repeatedly seeking prices for individual loads.

Spot haulage remains useful where demand is irregular, seasonal, or based on one-off movements. It can suit businesses that do not need dedicated capacity, but availability and contract haulage rates are less predictable because they depend on current demand, capacity and operator availability.

In 2026, committed capacity is becoming more important for many shippers. UK road haulage continues to face pressure from tight capacity and an ageing HGV driver workforce. Businesses with regular transport requirements often benefit from securing dependable operator relationships rather than relying entirely on short-notice availability.

• Contract haulage: suited to regular volumes, planned transport requirements, committed capacity and greater rate stability.
• Spot haulage: suited to occasional loads, variable demand and businesses that do not require ongoing vehicle commitment.

Types of haulage covered by a contract

A haulage contract can cover a wide range of transport requirements, depending on the freight, delivery pattern and equipment needed. General haulage is commonly used for everyday palletised freight and can include curtainside trailers and boxvans for distribution work.

Road haulage contracts can cover palletised goods, bulk freight and regular transport flows between sites, warehouses and customers. Container haulage is another common requirement, particularly for businesses moving imported or exported goods between ports, terminals and final delivery locations.

Other contracts may involve tipper work, specialist transport or dedicated haulage arrangements where vehicles are assigned primarily to one customer. The right vehicle type depends on payload, delivery locations and operating requirements. Operators must hold the appropriate goods vehicle operator licence, with details available from the UK government at operator licensing guidance.

Vehicle choice is an important part of contract planning. Articulated vehicles are widely used for higher volume work, with a typical 44 tonne artic combination using a 13.6 metre trailer and carrying around 26 pallets. Rigid vehicles can be more suitable for urban deliveries, restricted access locations or operations where a smaller vehicle footprint is required.

Through Contract Transport Services, businesses buying haulage can access a structured procurement process without owning transport assets. CTS is independent and asset-neutral, with no trucks to sell and no operator preferences to promote. Operators are checked against key requirements including DVSA operator licensing, financial standing, insurance and relevant accreditations before being considered for a private transport brief.

How contract haulage is priced

Haulage cost depends on the work being committed, the equipment required, the operating pattern and the level of service expected. The following figures are indicative observed UK market guidance only and are not a CTS quotation. They are intended to help buyers sense-check proposals received from hauliers.

For long-distance artic work, rates commonly fall around £1.80 to £3.00 per mile, with standard full-load trunking often starting from about £2.40 per mile. Some haulage services are priced differently depending on the operating model. A dedicated vehicle may be charged as a vehicle day rate, work may be priced per pallet for certain distribution operations, or a fleet may be provided through an open-book cost-plus arrangement where agreed operating costs and management charges are transparent.

Fuel is a major part of road haulage costs, so buyers should understand how it is treated within a haulage contract. Some agreements use a separate fuel surcharge linked to an agreed fuel index, which rises and falls with fuel prices. Others use an all-in rate where fuel movements are already built into the agreed price. The important point is that the mechanism should be clear before the contract starts.

Industry cost benchmarks are published in the Road Haulage Association Cost Tables. These provide recognised industry reference information covering the operating costs associated with road haulage, including areas such as fuel, wages, maintenance and finance. Buyers can consult this published benchmark when reviewing contract haulage rates and assessing current operating costs.

Actual rates vary according to the lane, type of load, backload availability, empty running, equipment requirements and contract length. A steady weekly movement pattern may attract a different structure from irregular work because the operator can plan vehicles, drivers and resources more effectively.

What a haulage contract should cover

A well-prepared haulage contract should set out the operating relationship clearly. The detail will vary between businesses, but buyers should normally address the following areas:

• Committed vehicles and drivers: the equipment allocation, driver expectations and whether vehicles are dedicated to the account.
• Capacity and peak flexing: the agreed weekly commitment, seasonal changes and arrangements for additional demand.
• Rates and fuel mechanism: the pricing structure, review process and treatment of fuel changes.
• KPIs and on-time performance: the measures used to monitor service delivery, communication and reporting.
• Backload and empty-running arrangements: how return journeys, waiting time and unused mileage are handled.
• Liability and goods-in-transit insurance: responsibilities for cargo, claims and appropriate insurance cover.
• Licensing and compliance responsibility: the obligations relating to operator licensing, drivers, vehicles and legal compliance.
• Term, notice and exit: the contract duration, review points and arrangements for ending the agreement.

How to procure and vet a haulier

Choosing a haulage provider for a long-term arrangement requires more than comparing a price per mile. A buyer needs confidence that the operator can support the work throughout the life of the haulage contract.

The starting point is checking the operator licence and compliance record. This includes confirming the correct licence status, reviewing any available compliance history and understanding how the operator manages legal responsibilities. Financial standing also matters because a haulier committing vehicles and drivers over several years needs the capacity to continue operating through periods of market pressure.

Buyers should also consider fleet suitability, vehicle types, depot locations, insurance cover, relevant accreditations and references from comparable customers. The operator selected should match the practical requirements of the work, including collection points, delivery schedules, equipment needs and service expectations.

For example, a manufacturer with steady weekly trunking requirements may decide to move away from repeated spot bookings and appoint a dedicated two-vehicle contract. This gives the manufacturer committed capacity and a more transparent view of transport spend, while allowing the haulier to plan resources around a known requirement.

CTS checks suitable operators before introduction, including operator licence details, financial standing, insurance and relevant credentials. CTS does not rank, rate or endorse operators. The buyer receives a private brief response from checked operators and remains in control of reviewing proposals and making the appointment directly.