Heavy haulage on road to ruin, warn operators
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THE heavy haulage sector of the industry is suffering from unprecedented rate slashing, according to several operators throughout the country, reports MIKE RUTHERFORD.
Pickfords Heavy Haulage managing director Geoffrey Toft said: "Rate cutting is going on to an extent I've never seen before", and Beck and Pollitzer's Charles Oliver said the situation is "the worst I've ever known in 33 years in the industry".
Mr Toft said that in present conditions, the only winner is the customer. The heavy haulage sector is so desperate that some operators are cutting their own throats.
"There is little work about. There is a massive over-capacity of heavy hauliers with too many people in the market."
Mr Toft said that some heavy hauliers are resorting to almost any methods in an effort to improve incomes, with taxation, overloading, and drivers' hours laws being breached, and he added that these problems are worse than ever.
"It's all about cash flow. One large company is taking on jobs to cover the price of fuel and wages only. It's the road to doom."
The answer lies with the hauliers themselves who should agree on certain rates and not fall below them said Geoffrey Toft. "It will never happen though, as you'll get hundreds of small companies who will undercut." In Newport, Gwent, Noel Wynn of Robert Wynn and Sons admitted that companies are working at rates which barely cover costs.
With less traffic, reduced rates are the short-time answer, he said. The heart of the problem is the lack of investment in industry generally, believes Mr Wynn.
Rate cutting is "pretty general" according to Heanor Haulage transport manager Doug Cope. He said that ownerdrivers in particular are to blame.
Charles Oliver pointed an accusing finger at operators who hire from trailer rental companies and enter the heavy haulage sector without appreciating its complexities and then cut rates.
Established customers are visited by these operators who offer drastically reduced rates — often cutting by 50 per cent.
Like most of the operators CM spoke to, Mr Oliver is aware of regulations being flaunted to an extent buf a Metropolitan Police spokesman was unaware of any cases where operators ignore the two clear days' notice needed before moving an abnormal load.