Transport

Road haulage industry under pressure

AdminFood industry news, Transport industry news

The transport sector is fearful of lasting damage as the coronvirus crisis continues. Airlines, ferry companies and of course, the road haulage industry, have all requested direct intervention from the government as they continue to feel the strain.

Although there has been an increase in demand in some sectors, notably food, the forced closure of non-essential shops means fewer goods are being moved overall, and this means many haulage companies are suffering. According to a recent industry survey, around 43 percent of trucks are currently off the road, while 25 percent of drivers are furloughed.

The main income for many haulage firms is transporting equipment for events and concerts, all of which have been cancelled due to coronavirus. Others have been hit by the massive reduction in imports from overseas.

Richard Burnett, chief executive of The Road Haulage Association has warned that many firms are in danger of going out of business and has asked the government for immediate help so they can continue to keep the UK economy moving.

The Road Haulage Association has been vocal in seeking support for members. Many demands have been met by Government, including the relaxation of Drivers’ Hours regulations until 21st April. The suspension of MOT testing has also been welcomed, although not without reservations.

The RHA has also called for an extension to the UK’s transition period for leaving the EU. Chief executive Richard Burnett said: “As things stand right now, the coronavirus outbreak means that we are simply not in a position to give the complexity of future trade arrangements with the EU the necessary focus.”

The RHA first warned on 16th March that many hauliers had reported catastrophic effects on their businesses as the volume of goods dropped sharply. Container volume from China had already fallen by more than 70 percent and the flow of goods from Europe was becoming increasingly disrupted.

Richard Burnett said the transport industry is integral in keeping the UK moving and called on the transport secretary to undertake a series of measures to ease the burden on operators. These include immediate cash flow injections, deferment of tax payments, and a delay to the launch of clean air zones by at least six months.

However, at the time of writing, no specific support package has been offered to the road haulage sector. The only assistance currently available is the Small Business Grant Fund (which applies to all businesses who receive Small Business Rates Relief), the Coronavirus Business Interruption Loan Scheme (which is available via the banks but proving difficult to access for many), and the Coronavirus Job Retention Scheme (which allows for the furloughing of employees).

We’d be interested to hear your experiences, so please get in touch with details of how your firm is coping and your thoughts on how Government could help.