We can't go on with low rates AS MD OF
Page 11
If you've noticed an error in this article please click here to report it so we can fix it.
a small container haulage company (£15m turnover) I would like to ask: what is the future of the container industry?
This sector was originally set up to simplify the distribution market and has now grown to service all markets. Attractive freight rates and favourable exchange rates let UK firms import goods at a cheaper rate than can be produced here. , The haulage sector has always worked on a volume basis and thus rates have always been kept low, but with margins in the 3% to 4% region this was still a viable and mostly successful venture.
However, the global crash in 2008/09 saw rates forced down by customers struggling to keep hold of business and they have never recovered.To add to hauliers' woes, nearly all our costs have risen.
Alongside these have been the Driver CPC and VBS (vehicle booking system) costs. It costs us money to pick up a container off a port. Has this been passed on as it should have been? Of course not. This is the container industry!
I know my margin is down to 1% or 1.5%. This is now simply not sustainable and as a hardworking industry we must start pushing for sensible rates or there are going to be major casualties in this sector.
With the banking sector more and more cautious about overdrafts they will simply not keep funding businesses with these high levels of turnover and such poor returns. I know I am not the only one struggling and hope the haulage sector can work together to put pressure on customers and eventually push up rates to keep the industry not only alive but competitive. Name and address withheld