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Cash in on Christmas
Page 16
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Guy Sheppard brings some tidings of comfort and joy
BUSINESS IS BOOMING in the run-up to Christmas. The Freight Transport Association's quarterly survey of activity levels found that 30% of operators enjoyed increased business between July and September:growth is expected to be even stronger until the end of this year, particularly in the retailing. waste and parcels sectors. Against this background. investment in new vehicles is likely to be at its highest level for 18 months with 30% of respondents expecting to expand their HGV fleets and 20% building up their van fleets.
FTA chief economist Simon Chapman says the industry will be busier than last Christmas. adding: "These results are great news for the UK economy." But not all the survey's results are so positive. Respondents say vehicle and goods-in-transit premiums have risen by 10% this year and employer and public liability premiums by 13% (seepage 18).
It also shows that the short-term prospects for rail freight are in marked contrast to those of road freight. Only 18% of respondents expect to increase their use of bulk/conventional services, compared with 54% in the last quarter.
Against that background intermodal operators are expected to record the smallest increase in activity since July 2002.
Francois Leclercq owns Staffordshire-based S Jones Logistics, which operates an inter-modal service between the UK and Italy. He says:"It's fairly difficult to promote rail in view of its unreliability. It's also a fairly expensive product compared to road."