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It's official: UK is failing in Europe

4th December 2003
Page 9
Page 9, 4th December 2003 — It's official: UK is failing in Europe
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Which of the following most accurately describes the problem?

INTERNATIONAL HAULIERS from the UK are falling further behind in their battle to compete with their rivals in mainland Europe, according to two new reports.

Department for Transport figures show that the number of UK trucks travelling to Europe has fallen to an eight-year low.

And the FreightTransport Association's latest quarterly survey on transport activity found that only one in 12 UK-based international operators expects business to grow in the short-termless than half the level that expect it to fall. Don Armour, the FTA's manager of international services, says exchange rates and increasing use of low paid eastern European drivers are putting UK-based hauliers at a competitive disadvantage.

"Volume business for UK international hauliers is simply no longer commercially viable," he warns. "The activities that are being retained by them tend to be in niche markets."

He adds that EU enlargement in May is likely to prove a mixed blessing. Drivers from eastern Europe could help ease the UK's shortage of drivers, but recruiting them simply to reduce costs could further destabilise rates. "At present, nobody can predict how this will play out." says Armour.

The DfT figures show that the number of UK trucks travelling to the Continent fell 3% between July and September, compared with the previous quarter. Over the same period foreign truckers increased their market share by 2% — UK trucks now account for just 26% of the overall market.