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30% More Haulage Businesses Went Bust Between July and October 2021 Than Did in The Same Period 2019

Written by Robert Moore Marketing Manager 24 November 2021

Haulage Truck

In exclusive research by KSA Group, published on its website www.companyrescue.co.uk, it has been found that there was a 30% increase in liquidations and administrations of companies in the haulage industry in the months from July to October 2021 when compared to the same period in 2019.  In total during those 4 months, 117 went bust in 2021 compared to 90 in 2019. 

This is not surprising given the problems in supply chains and the lack of HGV drivers.  This sort of disruption is bound to put pressure on haulage businesses which will lead to cashflow problems.   The industry has been able to put prices up to compensate for the extra costs of encouraging drivers to stay but only if they are not tied into contracts with large customers.

EVCL Chill, based in Rochdale, went into administration in September. It had a number of major contracts for supermarkets including Asda and Sainsbury’s and employed about 1,000 workers in warehousing and HGV driving roles.

The failure of the firm was down to the loss of 'key customers' and serious driver shortages, said the administrators at PwC. In addition, they said that there have been some Brexit factors as there has been a fall in shipments between the UK and EU and between Great Britain and Northern Ireland.  Some companies have seen revenues fall for some logistics businesses that relied on cross-border trade, the firm noted.

Whether this trend is going to continue is hard to say but HGV driver shortages were caused by a number of factors, most notably the inability to carry out proper driving tests and issue licences during the pandemic.  The sector has lost a number of workers over the last few years due to IR35 changes, poor conditions, EU drivers returning home amongst other things.  However, it is likely that these problems will ease over the coming year and some of the extra costs will end up being absorbed in higher prices.

: Haulage

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