UK backhaul rates are unsustainable
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By Robin Meczes
UK BACKHAUL rates are getting so low that backloads are often not worth going out of the way for, according to the boss of North East haulage irm Matthew Kibble Transport.
Matthew Kibble, MD of the Nelson, Lancashirebased operation, told CM that it is not unusual to be offered rates as low as £1.10 per mile on backloads. He said this is unsustainable given that the irm’s fuel costs are about 65p per mile.
“You’d need a minimum of £1.60 to £1.70 per mile to make it sustainable,” said Kibble.
While much is often made about the need to ensure maximum vehicle utilisation, the rates offered for some backloads meant it often made more sense to come home empty than accept them, according to Kibble – something he said his irm did about 70% of the time on trips to Scotland.
Steven Frowen, director of Coventry-based Steve Frowen Transport, which frequently delivers to France, Belgium and the Netherlands, said rates for international work aren’t any better.
“We only get backloads from the Continent about 5% of the time, and the rates we get on such loads are only sometimes worth it,” said Frowen.
Also, there are often issues about customers being unwilling to accept delivery when the vehicle turns up, said Frowen, which can easily tie vehicles up or mean having to store the goods for a number of days before attempting to deliver again.