A recent Route4 Solutions online survey revealed rising fuel costs to be the biggest issue hauliers and logistics operators believe they will face in 2018.
The online questionnaire was sent out to transport managers within the East Midlands to try and gain insight on what they felt to be biggest issue facing the transportation sector in the current economy.
The survey revealed that rising fuel costs was the number one issue that affected firms within the East Midlands. 31% of respondents who completed the survey cited this as their main issue. Most argued that the rising price of a barrel of oil and a weaker pound as the reason why wholesale fuel costs had increased.
The results also outlined “pay increases” to be the second biggest issue within the sector, with 25% reporting that increased wages and increased costs of maintaining vehicles would likely lead to a less profitable financial performance in 2018.
The third most highlighted issue was a lack of drivers, with 18% saying that this had led to a decrease in the amount of deliveries they were able to make and will ultimately have a detrimental effect on financial performance.
Route4 Solutions, Managing Director, Mike Harris
Interestingly however, only 6% answered that the impact of Brexit, was having a detrimental effect on their business. Albeit there we some comments about the uncertainly on freedom of movement and how changing employment laws may impact their ability to make the right judgements over medium and long term strategy, employment, training and investment plans.
Commenting on the Route4 Solutions survey, Managing Director, Mike Harris said “It is always good to hear the thoughts of transport managers here in the East Midlands. With the rising cost of oil, it is hardly surprising to see that rising fuel costs is considered to be the biggest issue that will impact on hauliers and logistics operators. This issue may force businesses to start to think about how alternative fuels and electric vehicles may be able to ease the pain of a costly fuel bill. Switching to alternative fuel might just be the way to achieve a competitive advantage, since the price of oil isn’t predicted to depreciate any time soon.”
Adding he said “I was very surprised to see that a lack of drivers was the 3rd most popular answer chosen amongst transports managers. This is an issue that Route4 Solutions works tirelessly at in order to make sure that when we are working with clients, we match the right driver, with the right assignment. We retain a loyal pool of drivers that make themselves permanently available to us, which helps us offer our clients a reliable and trusted temporary driver solution.”