RHA and industry leaders demand urgent government action

As National Lorry Week concludes, industry leaders are sounding the alarm over the challenges facing the UK haulage sector. Despite lorry drivers’ essential role in keeping the economy moving, the industry is battling intensifying pressures that threaten its future. In a sobering reminder of the sector’s struggles, 463 haulage operators went out of business in the past 12 months—double the number from 2021-2022.

Porttalk caught up with Steve Collins, Fargo’s managing director, and Tim Wray, managing director of Multimodal Logistics and vice chair of the Road Haulage Association (RHA). Both leaders highlighted the challenges exacerbating the crisis and called for urgent government intervention.

A Struggling Industry

Tim Wray outlined the grim reality facing small and medium-sized haulage companies: “For the past decade, National Lorry Week has aimed to raise awareness of the vital role our drivers and the haulage sector play in the economy, but we still face an uphill battle. The driver shortage, rising fuel costs, and escalating operational expenses push many businesses to the brink.”

The statistics support Tim Wray’s concerns. Hauliers have been grappling with high inflation, soaring fuel costs, and stiff competition from larger operators. These pressures, compounded by post-Brexit trade complexities, have been fierce on smaller operators operating on traditionally low-profit margins.

Key Challenges Facing the Sector

The difficulties go beyond the headline figures. According to Tim, the sector is facing a perfect storm of issues that urgently need addressing:

• Driver Shortage: An ageing workforce has worsened this ongoing problem, with many drivers nearing retirement and recruitment efforts failing to attract younger drivers.
• Fuel Costs and Environmental Pressures: Rising fuel prices have significantly impacted profitability. At the same time, companies are being pushed to adopt greener technologies, such as electric or hydrogen-powered vehicles, a transition that requires massive investment.
• Technological Advancements: The rapid adoption of logistics technology is another pressure point. Transport management software, real-time tracking, and other digital solutions are now vital, but implementing them comes with steep learning curves and costs, especially for smaller operators.
• Regulatory and Compliance Burdens: Stricter rules on emissions, safety standards, and driver hours add administrative and financial burdens to haulage operators.
• Infrastructure and Operational Costs: Aging road networks, rising insurance premiums, and maintenance costs further strain companies.

The RHA Vice Chair emphasised that drivers, despite being key workers, still face poor working conditions, particularly when it comes to welfare facilities on the road. “Drivers must be recognised as professionals. They are the backbone of our economy, yet we are failing to provide them with even basic welfare facilities. The government needs to take action to improve conditions for drivers at rest stops.”

A Call for Action

Tim Wray and Steve Collins agreed that the industry cannot tackle these issues alone. Tim  was particularly vocal about the need for a dedicated voice within government: “We urgently need a government minister responsible for the haulage sector – someone, who understands our challenges and can push for better infrastructure, affordable green technologies, and fairer regulations.”

Fargo Systems’ Steve Collins underscored the urgency of increased technological adoption to stay competitive: “In today’s climate, adoption of technology is not just a choice- it’s a necessity.”

The TopsTMS® provider has witnessed first-hand the pain of small and medium-sized hauliers, as outlined by Tim. “2023 and 2024 have been tough years in the logistics industry; the challenges suffered by hauliers transcend to industry service partners. Fargo Systems is doing all it can to support its customers, but the time has come for government backing.

Transport Management Systems helps hauliers remain efficient and compliant, but the speed of technological advancement can be overwhelming for many. The government must support technology adoption to ease this transition.”

Steve believes haulage operators can adapt and thrive in the future with the proper support, including stronger collaboration between the government and industry stakeholders. “It’s not just about survival – it’s about enabling growth through the right tools and investment,” he said.

The Road Ahead

As National Lorry Week continues to celebrate the contribution of drivers and the logistics industry, the message from industry leaders is clear: the haulage sector needs urgent attention. Without meaningful action, the UK risks losing a significant portion of its hauliers, with smaller operators particularly vulnerable to the relentless pressures they face. National Lorry Week may mark a milestone for the sector. However, without government recognition and support, it may also serve as a stark reminder of the challenges that still lie ahead.

Tim concluded: “It’s time for the government to recognise the haulage industry’s importance to the UK economy and provide the necessary support to ensure it survives and thrives in the years to come.”