Are Rising Costs Crippling Hauliers and Logistics Companies?

Cost-of-living increases are affecting companies just as much as they are individuals.

Cost increases for diesel, adblue, tyres, and spare parts for maintenance, as well as recent increases in HGV drivers’ pay to tackle the well-publicised driver shortage, have been blamed for a Welsh haulier recently going bankrupt. "The previous 12 months have been an exceptionally tough time for hauliers, who have seen their overheads climb drastically and fast," the liquidator stated.

Will this be the first of many commercial road transport operators to fail due to rising costs and being bound by contracts that prevent them from increasing prices to their customers?

Companies must do everything possible to keep expenses under control with the aim of making their fleet operations as efficient as possible, from improving vehicle performance and driver behaviour with vehicle telematics to optimising delivery routes and ensuring the shortest distance, and thus the lowest fuel consumption is achieved, per delivery.

Descartes Fleet Software solutions will increase delivery density and ensure that deliveries are completed on time, and in full on the first visit, avoiding the costly requirement for a second visit, as well as optimising the delivery order and the route used to minimise miles per delivery.

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