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We're holding our own

1st December 2005
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Which of the following most accurately describes the problem?

It seems the decline in the share of the cross-Channel market held by UK hauliers has ended — now it's the turn of Continental operators to feel the squeeze. Chris

Tindall reporb. Figures published by the Department for Transport ( DfT) reveal that the decline in the number of UK trucks travelling to the Continent has come to an end.

During the third quarter (03), foreign-registered vehicles outnumbered UK trucks by about three to one, which is on a par with the same period last year and a slight improvement on the second quarter of 2005.

During 03. I 28.100 UK FIGVs travelled to the Continent compared to 373,300 foreign HG Vs. This was slightly fewer than 02, when 130,800 UK trucks made the journey, but 6,(XX) more than the same period last year. However the number of foreign vehicles also changed accordingly, resulting in similar proportions. In the year to the end of 032005. the number of UK trucks rose 8% year on year. Over the same period, the number of foreign vehicles rose by 7%.

The trade associations have tentatively interpreted this as an encouraging sign in an extremely difficult market.

The Burns Inquiry has highlighted many UK businesses that have lost work to cheaper foreign competition hut. in spite of EU enlargement. it looks like they are managing to hold their own in the cross-Channel sector. This still compares unfavourably with figures from 10 years ago, when the UK market share was closer to 50%.

Peter Cullum ,the head of the RHA's interna tional department. says: "The central issue, which is reflected in the Burns Inquiry, is the tremendous difference between the number of foreign vehicles coming into the UK and the number of UK ones going abroad.That statistic has not changed in the recent past."

He puts this down to the cheaper rates offered by foreign hauliers, plus the fact that the UK government doesn't enforce the law on foreign hauliers to the extent it does on UK hauliers.

Don Armour, international services manager at the FTA, says that i f there is anything encouraging in these figures it is that recent enlargement of the Eli appears does not seem to have had a major impact on the market. "Why? Existing UK customers prefer to deal with UK hauliers maybe; there's no misunderstanding over language.

"Maybe some have had their fingers burnt as well and have returned to UK hauliers. It's quite encouraging it's been fairly stable throughout the year."

The DfT report Road GoodsVehiclesTravelling to Mainland Europe: Q3 2005 also shows the market share of UK-registered vehicles hasn't topped 50% since 1995, and since 2000 the proportion has drifted steadily downwards from 33% to 25%.

It seems that EU enlargement is having the biggest effect on Continental operators, According to the figures, the big losers in the last quarter were operators from Western Europe there were noticeably fewer trucks from France, Italy, the Netherlands, Belgium, Spain and Austria compared with the same period last year.

But hauliers from the accession states the Czech Republic, Estonia, Hungary, Latvia, Lithuania, and Slovakia recorded significant increases. Poland was the biggest winner; the number of Polish vehicles making the journey almost doubled since 03 2004 to 14,600 in 03 this year.This was closely followed by Hungarian vehicles, which rose by 80%, and vehicles from the Czech Republic, which went up by 62% over the same period.

Overall, trucks from the 10 accession states now constitute 9% of all traffic from the UK to the Continent, compared with just 1.5% in 1999.

Cause for concern k' 1 reightl ransport Association wams:"The increasing presence of these vehicles in the UK is having a damaging impact on the domestic UK road transport industry."

The main concern for domestic operators will be the number of East European hauliers working in the UK.

The Burns Inquiry revealed that there is a growing issue with cabotage foreign operators handling UK domestic haulage and a large influx of cheap-rate competition can only exacerbate the problem.

Although it tends to be markedly regionalised and relatively small in percentage terms (about 1-2% nationally),c.abotage has El disproportionately large effect on rates.driving down the price UK hauliers can charge. Foreign vehicles have also shown a higher incidence of drivers' hours offences and vehicle defects when stopped in VOSA checks.

Despite this, there is a considerably lower likelihood that a foreign operator will be checked the current figure is about 1%.

The statistics also reveal that the vast majority of goods vehicles disembark in France-1,8m for the four quarters ending 03 2005. As a result, the Dover Strait ports have enjoyed "marked growth" in recent years: 62% of all vehicles left Britain through this route in 03. •


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