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Running at a loss is no one's gain

21st December 2000
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Page 3, 21st December 2000 — Running at a loss is no one's gain
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Which of the following most accurately describes the problem?

"Is this the end of road haulage as we know it?" we asked this time last year, following an exdusive Commercial Motor survey which revealed an outlook so gloomy that three out of four hauliers wanted to get out of the trade for good.

For many, of course, it was indeed the end. For the umpteenth year running, dozens of honest, reputable firms with decades of professional competence behind them found themselves with no choice but to give up the fight against impossibly high costs. We mourn their passing.

For those who managed to hang on, the year did at least end much better than it began. Government commitment to a 44-tonne maximum weight, for instance, something the industry has long campaigned for, finally became reality— even if the details still aren't dear So too did calls for some serious investment in Britain's transport infrastructure. And the promise that, at last, foreign hauliers would soon be made to pay towards their use of British roads was also welcome news even if, once again, there was little detail of how it will work and what it might cost.

But by far and away the single biggest reason for 2000 to be remembered as a year of positive turnaround for the industry was the unprecedented success of the September fuel protests. All right, we didn't get the 30pflitre reduction in fuel prices we'd all dreamed of. All right, UK hauliers still face the highest fuel costs in Europe. And yes, world oil prices could yet wipe out all the benefits of the measures announced by Gordon Brown in November. But all the same, who'd have put money on us getting a freeze in fuel duty this year, a tax break on ULSD for next year, and a widespread reduction in VED?

Opinions differ about the fuel duty protests. Many believe that joint activities with non-haulage groups simply weakened the industry's call for special treatment. But they also strengthened the central argument about fuel duty in Britain being unacceptably high, and without these protests, we'd never have won the concessions we've got.

Without doubt, everyone in this industry owes a debt of gratitude to those who were prepared not just to talk a good fight, but to actually go out and do their bit.

So what can we look forward to in 2001?

Despite the various advances of the past 12 months, UK hauliers still face huge competitive pressures in the coming year. Foreign operators continue to enjoy lower costs than we do and look set for a prolonged period of grace before any Brit Disc scheme comes into play.

The Working Time regulations threaten to handcuff an industry that has always relied on long hours to make its living. And the driver crisis can only deepen during the course of the next year, bringing recruitment problems even more strongly to the fore.

But perhaps the biggest threat to your livelihood over the next iz months will be the way you set your rates. Now, as much as ever, hauliers need to make sure they know their true costs and price their work accordingly. Taking on business at a loss—something the industry has reluctantly got used to and customers have grown to expect—is something no sensible haulier can afford to do, at least not if he wants to be around this time next year.

It may not be easy, but making sure you don't work at a loss over the coming year is probably the best Christmas present you could give yourself. Not to mention the only way you're going to actually have a happy new year.

Commercial Motor wishes all its readers an enjoyable festive season and a very prosperous 2001.

• Talking of covering your costs...as we mentioned last issue, Commercial Motor's cover price has been increased with effect from this week by rop to reflect our own rising costs. We hope you'll agree that at £1.5o, CMis hardly expensive and continues to represent excellent value for money. And as ever, of course, we'll be looking to support you by helping to keep you profitable, professional and legal throughout the coming year.

Robin Meczes, executive editor


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