đź•’ Article read time: 4 minutes
Year ends on a positive for logistics businesses
Business finances in logistics ended 2020 on an upward trajectory, according to the respondents to Logistics UK's latest Logistics Performance Tracker (LPT).
The 180 respondent companies, which span 18 UK sectors, reported that they are faring relatively well financially, with larger firms and larger fleets less likely to experience poor financial health. The survey, which was the eighth in the series, was conducted between 1-15 December 2020.
Business outlook for the next six months and Brexit preparedness, while positive, fell slightly to 6.49 (from 6.55) and 6.51 (from 6.59), respectively, in December, while the proportion of businesses in the transport and storage sector with cash reserves of more than six months has stabilised since July.
CONGESTION EASES, STAFF SHORTAGES REMAIN
Owing to a reduction in traffic density and car traffic being 17% lower than pre-March 2020 lockdown levels, road congestion and delivery times continue to be positively impacted by COVID-19 restrictions.
However, the availability of staff and drivers became more problematic in the run up to Christmas and the end of the Brexit transition period, as stockpiling became more widespread.
COMMERCIAL VEHICLE TRAFFIC RISES
While car traffic was 17% below normal, HGV and van traffic was 11% and 2%, respectively, above pre-March lockdown levels on 14 December. But it is HGV weekend traffic that has seen the biggest rise – 22% – as haulage businesses continued to maximise productivity with seven-day deliveries in the run up to Christmas and to meet stockpiling demand in advance of the end of the Brexit transition period on 1 January 2021.
In order to meet pre-Christmas demand and end of Brexit transition period stockpiling, logistics businesses made more use of short-term vehicle hire in the first two weeks of December.
DISRUPTION FALLS, IMPORTS DELAYED
The report shows that the level of severe and extreme disruption experienced in December fell across the board, with the exception of warehousing capacity and business orders, which increased slightly.
However, more than seven out of ten respondents (72.2%) reported increased delays in receiving goods from abroad, as Christmas and pre-1 January stockpiling added pressure to supply chains.
*www.logistics.org.uk/lpt
Published On: 14/01/2021 17:00:51
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