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Govt must support 'struggling' logistics sector, FTA says

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Govt must support 'struggling' logistics sector, FTA says

Thursday, 08/4/2010 11:57
Politicians must show more support for the logistics industry as the sector continues to struggle in the wake of recession, it has been claimed.

According to a report by the Financial Times, any recovery in the trucking sector remains "patchy", despite a recent rise in volumes for many hauliers.

The Freight Transport Association (FTA) estimates that the number of insolvencies in the industry has more than doubled in the past 12 months, while 65 per cent of firms have been forced to make redundancies.

Jo Tanner, director of communications at the group, said the recent fuel duty hike has dealt a further blow to a sector that is "struggling to survive".

"Politicians aren't really thinking of the backbone of industry, which is the logistics sector," she stated.

"We need the government to invest in roads and ports and the construction industry."

The FTA's views mirror those of fellow trade body the Road Haulage Association, which last week claimed that transport firms could be forced to raise rates to survive.

It said the continuous rise in fuel duty, diesel prices and overheads was putting growing pressure on hauliers, who would be forced to pass the cost on to customers.

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