Last reviewed 15 May 2020
Thousands of hauliers are at risk of going bust as many parts of the supply chain have ground to a halt during lockdown with 83% reporting volumes as significantly reduced while 22% have no orders at all.
These are some of the key findings of a series of surveys by the Road Haulage Association (RHA) which also found that 73% of firms say their cashflow is significantly reduced with 13% reporting no cashflow.
A summary of the survey results can be found at www.rha.uk.net.
An initial survey (4500 respondents) of both members and non-members assessed the early impact of the pandemic on haulage operators focusing on numbers of “inactive” trucks and drivers.
A second survey (1200) examined operators’ current finances, access to government support packages and volumes of work, while a third followed up those who responded to the first, asking how long they thought their businesses would survive.
The RHA received feedback from 865 firms.
This has led Chief Executive, Richard Burnett, to warn the Government that it must recognise the key role haulage will play in recovery by doing more to help struggling firms get back on their feet.
“These figures are a staggering snapshot of the impact this crisis is having on the industry,” he said. “Many hauliers have no work but still have bills to pay and they’re finding it increasingly difficult to stay in business.”
So far, 15% of operators have applied for CBILS (Corona Business Interruption Loan Scheme) loans but almost all (95%) have had their applications rejected by banks and other lenders.
Highlighting that 46% of trucks are inactive while 25% of drivers have been furloughed, the RHA said that struggling firms need help through sustainable measures such as debt support and more flexible furlough rules to pull them through the recovery effort.