Haulage industry calls for government aid

Source: Supply Chain Digital

Date :17/06/2008 09:45:49

The haulage industry has increased efforts to secure government aid for companies struggling as a result of surging fuel prices.

The hauliers argue that the Treasury should use a surge in tax revenue from oil to rescue the rising numbers of distressed hauliers.

They are demanding an "essential user" fuel duty rebate, and at least a postponement of the planned 2p a litre duty increase planned for October.

Another suggestion is to reduce diesel prices to at least that of petrol.

Drastic aid

Hauliers have seen a 20-30 percent rise in operating costs in the past year. Fuel comprises about 40 percent of operating costs in the low-margin industry.

The big listed companies - such as Eddie Stobart, Wincanton and TDG - are relatively insulated because they have "fuel escalators" built into contracts, says Ian McInally, an analyst at Arbuthnot Securities. However, the 10,000 or so small hauliers - many of them owner-drivers - do not have such contracts and are finding cash flows are being eroded.

“Unless the government does something drastic to help the hauliers today, many will have no tomorrow," says Roger King, chief executive of the Road Haulage Association (RHA).