A decent road network is indispensable for the logistics industry to keep Britain’s goods moving. But road transport is facing the challenges of Covid-19, Brexit and environmental concerns.
This article was first published in the July 2020 issue of Logistics Insight, subscribe to the magazine by clicking here.
Haulage firms have called on the Government to do more to help them through the Covid-19 crisis as they gear up to drive economic recovery. A survey of 600 operators has revealed that the vast majority of hauliers are still struggling after pandemic lockdown measures have seen volumes collapse. Sixteen percent of operators claim they could be insolvent within four weeks, despite government furlough payments and bounce back loans offering a temporary reprieve. More than half call for a weekly furlough model to service inconsistent workloads and many urge the Treasury for help with business rates and standing costs.
UK commercial vehicle (CV) production was down -61.6% in May, with 810 vehicles leaving factory gates, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). A recent SMMT member survey confirms the continued importance of government support measures such as the Coronavirus Job Retention Scheme, with a third (33%) of automotive employees still on furlough. As the CV sector approaches restart, however, there are significant concerns over cash flow and liquidity, with 70% of automotive businesses experiencing challenges in this area. As the furlough scheme tapers to an end in November, the survey reveals that up to one in six jobs are at risk of redundancy. Mike Hawes, SMMT Chief Executive, said: “With many plants still shut and those open operating at reduced capacity, these figures illustrate the need for urgent support to drive a successful restart.”
The RHA has applauded government’s flexible approach to post-transition border checks on goods imported from the EU as a means of helping businesses already struggling with the economic impact of Covid-19. “Thank goodness they’ve listened to us,” said RHA chief executive, Richard Burnett. “We wrote to Michael Gove at the beginning of the Covid crisis in March, saying that there needed to be a delay as businesses simply wouldn’t be ready. We stressed that there needed to be an implementation period for transition and I guess that’s exactly what this is going to be.”
The Committee on Climate Change (CCC) has published a report entitled Reducing UK emissions: 2020 Progress Report to Parliament. The report includes a plan for the decarbonisation of transport in the UK, including: wider subsidised roll-out of EV charging infrastructure; reducing vehicle emissions prior to banning petrol and diesel powered vehicles; and supporting the role of hydrogen and bio-methane in fuel solutions. The RHA’s Richard Burnett commented: “The report from the Committee on Climate Change features laudable aims to address our environmental challenges. These must now be set within a sustainable strategy recognising that environmental and social wellbeing depends on economic wellbeing.”
But with roads being so essential to logistics we are confident that the road transport sector can overcome the challenges of Covid-19, Brexit and environmental anxieties to keep goods moving for years to come.
Comments are closed.