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Act now to protect supply chain, says Logistics UK
Figures from Logistics UK’s latest Logistics Performance Tracker demonstrate the unsustainable financial pressure businesses are currently facing.
The outlook is predicted to worsen by 82% of respondents, who expect the cost of transporting goods to escalate further in Q3 of 2022.
Responses to the survey, completed by 165 of Logistics UK’s members spanning 12 business sectors, demonstrate that the logistics industry is struggling with inflated prices, as bulk diesel increased by up to 42% in the first six months of the year.
Operating costs have continued to rise substantially and as a result, freight rates across all modes are predicted to increase in Q3 2022 compared to Q2 2022, with domestic and international road freight rates expected to rise by an average of 5.9% and 5.0%.
Sarah Watkins, Logistics UK’s Deputy Director – Policy Information, said: “With 95% of respondents expecting the cost of living to worsen in Q3 2022, and one-third of respondents anticipating a decrease in orders in Q3 2022 as consumers reduce spending in response to the cost-of-living crisis, it is vital that immediate action by government is taken to ensure the health of the UK supply chain.”
In June 2022, Logistics UK wrote to the Chancellor to take decisive action via the immediate introduction of a 6p per litre reduction in Fuel Duty, in addition to the 5p per litre reduction that was announced as part of the 2022 Spring Statement, but was absorbed by rising fuel prices.
“It is estimated this would result in an average saving of £2,424 per year, per 44-tonne truck,” Watkins said, “and Logistics UK is now renewing its call on government to work with industry to reduce operating costs, where possible, and protect the nation’s integral supply chain.”
*www.logistics.org.uk/lpt
Published On: 18/08/2022 16:00:54
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