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Fuel costs 'putting pressure on supply chain transport planning'

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Fuel costs 'putting pressure on supply chain transport planning'

Thursday, 08/9/2011 01:03
High fuel costs are continuing to put pressure on companies engaged in supply chain transport planning, an organisation has claimed.
 
The Freight Transport Association (FTA) has warned that this remains the biggest cause for concern among hauliers and that operators are continuing to be squeezed by rising costs.
 
It claimed that the average vehicle operating costs for rigid, articulated and drawbar vehicles has risen by 5.6 per cent in the first six months of the year and remain close to April's all-time high.
 
Bruce Goodhart, research analyst at the FTA, has highlighted the fact that while many hauliers survived the recession by cutting their margins and avoiding vehicle replacement these are only temporary measures.
 
He said that rising input costs, high fuel prices and customers' resistance to price rises are all contributing to the problems.
 
Mr Goodhart claimed: "Economic growth is currently very weak in the UK and it is likely that some hauliers may not be able to sustain their business in these circumstances."
 
Last month, the Confederation of British Industry highlighted the important role that private investment must play in improving the UK's road infrastructure, which could help reduce the cost of supply chain transport planning.
 
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