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FUELS COST TROUBLES * UK - Rising cost of fuel takes toll on transport sector
Rising fuel prices are having an impact right across the spectrum of transport activity. Companies ranging from road freight operators to airlines are being driven out of business in all major markets throughout the world
London,UK -Logistic Briefin, by David Bagshaw -15 Apr 2008: -- ... In the UK, for example, the latest freight company to call it a day is Ramage Distribution, a well-known Scottish-based road freight carrier. Last week, management called in accountants KPMG to act as receivers. Some 350 jobs have been lost at depots throughout the country, with just a handful of staff retained to help the company in administration... The crash of the company comes only months after Ramage reported that its acquisition of Scottish haulier UFD in mid-2007 had "knocked millions off the combined annual overheads of the enlarged operation, almost tripled turnover and left the company primed for expansion in 2008" (Ti Logistics Briefing, News, December 21, 2007). Its subsequent problems have been blamed on rising overheads, mainly fuel...
Such problems are not confined to the UK where at least truckers currently don't have to cope with a major economic slowdown. In the US, truckers are faced with a combination of record oil prices and dropping volumes, particularly in the construction/housing industry. Anecdotally, it is the independent truckers which are facing the worst crisis, being unable to pass on the full costs of fuel to their employers. Fuel surcharges are being dropped as competition for the dwindling number of loads gets increasingly intense... Labels: fuel costs troubles
posted by Unknown @ 11:44 AM
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