Specialist haulage in Europe news
11/10/2011
FTA wants end to fuel disparity
The Freight Transport Association (FTA) has spoken out against what it perceives to be the UK's disadvantage in specialist haulage compared to the rest of Europe.
According to the FTA this disadvantage stems from the fact that the rate of fuel duty paid by UK specialist haulage compares unfavourably to that paid by the rest of Europe.
The FTA's CEO, Theo De Pencier comments, "With rates of duty on the Continent up to 24 pence per litre lower than on this side of the Channel surely it is in the UK's best interests for Government to level the playing field.
"If something isn't done to redress this imbalance we will see more domestic hauliers pushed to the limit to try to remain competitive; the result will inevitably mean more costs being passed on, which will stoke inflation further, or, worse still, mean more redundancies and more companies going bust.
"Fuel now accounts for around 40 per cent of total truck operating costs in the UK; with persistently tough trading conditions and cheaper competition from overseas, our logistics sector is under increasing pressure to maintain an even keel.
"While we secured a fuel duty reprieve in the budget this year, plans to increase it in 2012 could hit us hard and effectively price the UK off the road to recovery. We urge Government to reconsider these plans or else risk widening the gap between UK and European hauliers."
The disparity is well-illustrated by the fact that an average £1,000 tank of fuel bought in Europe will travel up to 280 miles further than one bought in the UK – the equivalent of around four return trips between London and Portsmouth.
As such, specialist haulage in Europe can bring in greater profits, while UK specialist transport must find innovative ways to keep providing a good quality and competitive service.
