Tunbridge Wells, UK: Logistics UK is renewing its call for the government to work with industry to reduce operating costs and protect the nation’s supply chain in the wake of alarming new findings in its latest performance tracker.
Figures from Logistics UK’s quarterly survey demonstrate the unsustainable financial pressures that businesses are currently facing. Responses demonstrate that the logistics industry is struggling with inflated prices, as bulk diesel increased by up to 42% in the first six months of the year. The current situation is predicted to worsen by 82% of respondents, who expect the cost of transporting goods to escalate further in Q3 of 2022.
Sarah Watkins, deputy director – policy information, Logistics UK, said: “Operating costs have continued to rise substantially: as a result, freight rates across all modes are predicted to increase in Q3 2022 compared with Q2 2022, with domestic and international road freight rates expected to rise by an average of 5.9% and 5.0%. With 95% of respondents predicting the cost-of-living to worsen in Q3 2022, and one-third of respondents anticipating a decrease in orders in Q3 2022 as consumers reduce spending in response to the cost-of-living crisis, it is vital that immediate action by government is taken to ensure the health of the UK supply chain.
“In June 2022, Logistics UK wrote to the chancellor, Nadhim Zahawi, asking him to take decisive action via the immediate introduction of a 6p per litre reduction in fuel duty, in addition to the 5p per litre reduction that was announced as part of the 2022 Spring Statement. That reduction was absorbed by rising fuel prices. It is estimated this would result in an average saving in operational costs of £2,424 per annum for each 44-tonne truck operated and the business group is renewing its call on government to work with industry to reduce operating costs, where possible, and protect the nation’s integral supply chain.”
