Operator calls for 10% fleet cuts
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• A haulier who has radically overhauled its business is urging operators to cut their fleets by at least 10% in order to take the industry back to prosperity.
Hereford-based Arthur Oakley Transport last week slashed its fleet from 39 vehicles and 100 trailers to 15 fully owned lorries and a handful of trailers. Managing director Roger Oakley auctioned the vehicles last weekend and has laid off 46 of his 66 employees.
Oakley says: "I believe I've done what all responsible hauliers should have done. If all hauliers took my lead the job would become viable again.., they'd still maintain the same income and there would be thousands of extra loads spare." The company has also pulled out of general haulage because of slowpaying customers and poor rates and will develop its dedicated contract work. Oakley, who is moving away from owning vehicles, is taking on 10 Volvo FL1Os on contract hire.
Oakley predicts the changes will have a radical effect on the company's finances. Turnover for the year to October is expected to be around £2m and profit at
10% — last year turnover was at £2.5m and the company broke even.
"I'm absolutely delighted. I've earnt enough at auction to pay off my HP and overdraft," Oakley says. "I had Elm of vehicles not making any money."