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Fuelling fears for the future
It depends who you talk to, and whether it is ‘on the record,’ or off, but the truth of the matter is that many hauliers are increasingly fearful of the immediate future because of the continuing high price of diesel.
 Some are publicly trying to ‘talk up’ the situation, but the underlying reality is that many transport operators are finding the going tough, very tough, and some are telling Export & Freight that their businesses may not be here the other side of Christmas if there is not a drastic drop in diesel costs.
“We know many operators, especially the smaller family run outfits, are in dire straits already,” one local Road Haulage Association member told us. “That is not surprising considering fuel accounts for 30% of their running costs and that most haulage businesses are making two per cent profit; the figures just don’t add up - and they cannot always pass on the increase to the customer.
“It doesn’t help either that more and more companies are extending their payment terms, some up to 105 days, before they’ll pay an invoice. Hauliers just cannot afford to wait that long on getting paid for a job.”
Every extra penny on the price of a litre equates to an extra £600 per year per vehicle. Northern Ireland hauliers, of course, have the option of buying their diesel somewhat cheaper from the Republic, but even there the price difference is closing.
Ferry Charges
Then, of course, there is the cost of taking a truck on the ferry. Ferry charges have also risen, by way of fuel surcharges. They have a fuel escalator and virtually every month it is rising. Haulage firms simply don’t have an option. They have to pay up, or close up. It is a vicious circle.
One haulier told us: “Additional haulage costs such as wages, vehicles etc are almost impossible to pass on. Government can and must help. Like the airline industry we are not immune to the effect of price rises on our raw material; the difference is that we cannot get customers to pay the extra before the journey.”
The government at Westminster does want to be seen as doing something about it, and recently announced a planned two pence a litre increase due this October has been, not scrapped, but merely ‘postponed.’
Small Step
While welcoming the move, the Road Haulage Association considers it to be a very small step indeed towards helping the industry upon which literally every home and business in the UK is totally reliant.
“Of course the freeze is good news”, RHA Chief Executive Roger King told us. “Any measure to reduce fuel costs for haulage operators cannot be regarded as anything else.
“However, although this 2 pence freeze is very welcome, while world oil prices are at an all time high we believe it should be abandoned altogether, along with the increase proposed for next March.”
Lobby
A delegation of hauliers from Northern Ireland recently joined local politicians and RHA and FTA representatives on a lobbying exercise to Westminster.
While a large convoy of Heavy Goods Vehicles made its way from the M40 Westway south to Westminster, an even larger foot lobby took the message to the Houses of Parliament.
It was one of the biggest ever lobbies of Parliament by UK transport operators. Six hundred and forty-five MPs, including all those from Northern Ireland, received personal requests for a meeting from hauliers who were desperate to highlight the problems they are now facing.
Solutions
However, lobbyists were also keen to highlight the workable solutions that will bring both short term relief and a long term solution to the problems.
“The Fuel Duty Regulator is an effective, workable solution,” said RHA Chairman Andy Boyle. “The Regulator would result in an automatic freeze on fuel duty increases if world oil prices rose above levels forecast by the Chancellor with a corresponding reduction in fuel duty to match the extra revenue from VAT from higher pump prices.
“In the longer term, stability and parity with Europe would be achieved by the implementation of an Essential User Rebate in order to reduce fuel duty to the level elsewhere in the EU.”
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