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IRU warns operators only to take on profitable work

5th March 2009, Page 7
5th March 2009
Page 7
Page 7, 5th March 2009 — IRU warns operators only to take on profitable work
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By Roanna Avison OPERATORS HAVE been warned to turn down business that is not profitable if they want to stay afloat.

This stark warning comes from the International Road 11.ansport Union (IRU) as it attempts to persuade governments across Europe recognise how important road transport is to the economy.

Jens Hiigel. head of sustainable g; development at the IRU, insists that 2 while governments must do more 2 to help road haulage. the industry aci. needs do all it can to help itself. "We are encouraging our only transport goods if they will make a profit and can pass on the costs to the customer." Hilgel says.

He adds that this approach would help stabilise prices because it would reduce the market capacity and customers would begin to realise they cannot cut to members to costs by forcing hauliers to operate at a loss.

Jack Semple, director of policy at the Road Haulage Association, says he supports the IRU's view, but adds: "I think we have to recognise that hauliers are going to want to have their drivers and trucks working and may well feel it is better to have them running at a loss than not running at all."

One haulier, who did not want to be identified, tells CM: "It's a catch-22 situation. Either I lose business to competitors that are willing to offer cheaper rates or T operate a loss on some jobs to keep my trucks and drivers working."

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Organisations: Road Haulage Association

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