...THE WORST OF TIVES
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II You're welcome to 1991. Judging by Commercial Motor's survey of haulage prospects in the new year, that just about sums up the industry's view of the future. More than three quarters of the hire and reward hauliers we spoke to reckon that business will be as bad or worse than in 1990.
Top of the gripes is the high cost of diesel, and with good reason. Operators have seen diesel prices rocket during the Gulf crisis, but how many have been able to get away with a fuel surcharge? Pity the poor hauliers locked into fixed price agreements. It's easy to say with hindsight that they shouldn't have allowed themselves to be hamstrung with such conditions but who can blame them? Many hauliers are locked into a Micawber-like view that Something Will Turn Up — in other words, accept a lousy rate now and hope to increase it when business picks up. Unfortunately, it is now a buyer's market and the suppliers of freight know they can push a contractor to the brink and beyond on the basis that there are plenty more hauliers where that one came from. They'll doubtless hold on to that view even when business does pick up. So now, more than ever before, is the time to fight hard for a decent rate and be prepared to walk away from unprofitable business. Of course that's easier said than done, when you've got vehicle payments, VAT, business rates and drivers' wages hanging around your neck. And the damage caused by the recession won't stop there. Investment on environmental improvements looks like falling by the wayside, along with the cash for training — both essential planks for the rebuilding of the road haulage industry. Commercial Motor has reported on plenty of haulage recessions since it was founded in 1 905 — naturally we'll continue to give you all the help we can to fight on and survive in the haulage industry in 1991. But judging by the current avalanche of business failures and bankruptcies, plenty more operators are about to call it a day and follow the advice of Old Bill, the Great War military cartoon sage: "If you knows of a better hole, go to it."