The latest annual cost movement report from the Road Haulage Association (RHA) paints a challenging picture for the haulage industry. Rising costs, declining profits, and an increasing number of operators leaving the sector indicate a demanding period ahead. The report, reflecting inputs from RHA members, suggests that costs for operating a 44-tonne artic and trailer combination (excluding fuel) rose by 9.2% in 2023. Concurrently, there was a notable decrease in freight volumes, ranging from 10 to 15%.
In response to these developments, the RHA is advocating for a halt in the escalation of fuel duties. Additionally, they are proposing an emissions-linked rebate system to encourage the adoption of cleaner fuel options like Hydrogenated Vegetable Oil (HVO) despite its higher manufacturing costs and price point than standard diesel.
The RHA emphasises the crucial role of the Coach and Haulage sector in sustaining and promoting the nation's economic vitality. There is, however, a silver lining in the report. It highlights that most RHA members involved in exports are now adeptly navigating the requirements, either managing Goods Movement Reference (GMR) numbers independently or via third-party arrangements. This progress suggests that initial challenges have largely been overcome.
Yet, the situation regarding Northern Ireland remains complex. Anecdotal accounts from the haulage industry, particularly those operating between Great Britain and Northern Ireland, reveal growing difficulties in sustaining profit margins. This strain is attributed to the Northern Ireland Protocol and Windsor Framework's combined impact, along with other general cost pressures and reduced volume on these routes.
This report underscores the pressing need for strategic responses and support for the haulage sector during these testing times.
As we navigate these turbulent times in the haulage industry, engaging in collective brainstorming and idea sharing becomes increasingly important. Therefore, I pose this question to our readers and industry colleagues: What innovative strategies or solutions could be implemented to mitigate these economic pressures and ensure the sustainability of the haulage sector?
