Haulage firms told to charge more as fuel duty rises
Road haulage firms must charge customers more to offset the rising costs of fuel, the Road Haulage Association has warned.
RHA director of policy Jack Semple said that the impact of the Chancellor’s decision to increase duty every three months, rather then once a year, is designed to disguise the impact from motorists, but the haulage industry will suffer. By April 2011, fuel duty will have increased seven times.
Semple said: “Transport firms face a triple-whammy of rising diesel commodity costs, endlessly rising fuel duty and increases in costs elsewhere. In the past 12 months, the price of diesel before duty and taxes has risen by 18%, largely due to the sinking value of the pound against the dollar.
“UK duty amounts to a 25% tax on the operation of a typical 44-tonne truck – and is by far the highest in the EU. British hauliers are paying up to £12,000 a year more than their EU competitors.”
On top of that, Semple pointed out that maintenance costs have risen sharply as a result of the deterioration in road conditions since the recent severe weather and members have reported sharp increases in spring, suspension and tyre costs. Employment, training and overhead costs have also been rising.
“With demand and confidence still low in many sectors of the economy, hauliers are often fearful of asking for rate increases. But customers must recognise that running a professional transport business requires sustainable haulage rates,” Semple said.
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1 Comment
It’s easy to say “Charge more”, with the change in the cabotage laws and the increase of use in “backload” sites by the end user, the haulier has a choice – costs to the customer stay the same or their business goes to the wall.
Customers should recognise sustainable costs but they are also being squeezed on price due to the recession.
Sadly we will lose many good hauliers over the coming months due to the Governments refusal to give the hauliers a break.
Sarah Arrow
March 30, 2010, 8:31 pm.
