Rising costs – we must support operators to drive economic growth

Rising costs – we must support operators to drive economic growth

05 Jan 2024 Posted By Joe Scotting

The RHA is calling for continuing freezes on fuel duty – and an emissions-linked rebate to support firms to adopt cleaner fuels such as HVO as the industry decarbonises.

Shocking figures revealed more than 460 transport businesses went bust in 2023 with freight volumes down by 10-15 percent with fewer goods being moved around as the cost-of-living bites.

Rhys Williams, RHA Regional Operations Manager told ITV Anglia:

“The biggest problem is that the cost-of-living crisis has hit consumers. They’re not buying stuff; they’re only buying what they need.

“This means that we have nothing to move around, nothing to deliver, no goods to move. But we still have those running costs associated with running a fleet of vehicles.”

Recent reports say 463 haulage operators across the country had gone into administration last year – doubling figures from 2022.

RHA managing director Richard Smith told The Ipswich Star that increasing cost pressures are reaching breaking point for many hauliers which affects the wider economy.

RHA members’ costs (excluding fuel) have increased by nearly 10 per cent according to our annual survey. This is on top of a 20 percent increase last year.

Fleets have been downsized by up to 30 percent in the last three years across all sectors and sizes of operator.

The RHA is also calling for more investment in improving our roads will keep traffic moving meaning people and goods can get to their destinations quicker and cheaper.