Managers cut costs by subbing out to Europe
Page 7
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• by Guy Sheppard One in ten fleet managers has subcontracted all or part of their operations to the Continent in a bid to contain their costs, according to a survey published yesterday (7 February).
And nearly one in three of the 200 managers questioned in the Lax Transfleet Report on Freight Transport says competition from foreign hauliers operating in the UK is now "a major concern".
Lex and the Freight Transport Association, which has helped interpret the findings, warn: The increasing trend towards freight transport buyers seeing road haulage as a commodity purchased on the basis of price will leave UK hauliers increasingly exposed."
The report highlights how the price of diesel has risen by 75% in the UK since 1993, compared with 20% in France, 13% in Germany and 7% in ttaly.
Although the preBudget statement in November helped narrow the difference, the report says: "The present cost differential between the UK and the Continent is about 5%. This is attributable in some part to exchange rates—the Euro is weak against sterling. However, UK costs are still significantly higher than in Europe."
The report also shows that 58% of fleet managers have made contingency plans against future fuel price protests, particularly where they are responsible for at least 11 vehicles. Managers of larger fleets were most likely to be concerned about skills shortages.
Lax manages more than 17,000 vans and trucks on behalf of its customers.
• See also page 7.