FTA: High fuel tax and traffic congestion blight freight industry

New research published by the Freight Transport Association in its July 2006 Quarterly Transport Activity Survey presents a picture of a freight transport industry blighted by high diesel prices which is struggling to meet ever more demanding business customers and consumers because of rampant congestion on the UK’s road trade routes. To mark ten years of the FTA survey, over 100 members were asked what had most adversely affected business performance in the past ten years. Rising world energy prices was cited as the most significant negative effect, followed by road congestion. Operators fear that the same factors will dominate the next decade, together with possible tax measures to curb carbon dioxide emissions.

 Some of the most positive developments in the industry have come from vehicle manufacturers, through better vehicle reliability and better fuel efficiency. However, harnessing best practice and IT solutions, improving vehicle utilisation and consignment visibility as it moves through the supply chain, provides the greatest benefit to industry.

The introduction of heavier 44 tonne trucks in February 2001 has enabled significant efficiencies to be made for some companies. The use of these vehicles remains concentrated in specific sectors such as bulk liquids, construction and heavy manufacturing where consignments are generally high density. Likewise, the possible use of longer, heavier lorries up to 25.25m on a limited number of routes in Britain is considered commercially attractive to a limited number of companies. Where these do offer efficiency improvements, the gains are considered to be significant.

Simon Chapman, FTA’s Chief Economist said, ‘UK road and rail freight operators are constantly introducing innovative practices and refining supply chains to ensure that UK businesses and consumers have a freight transport industry that is world-beating in its safety record, efficiency and dependability. The benefits of state of the art equipment and high calibre personnel - management, fitters and drivers - are being squandered by a lackadaisical approach by the Government to transport infrastructure investment and its insatiable appetite to pick the road user’s pocket for tax revenue at every turn.’