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Logistics sector calls for fuel duty suspension

20 March 2020

The Association of Pallet Networks (APN) has called for fuel duty derogation to help the UK logistics industry fulfil its vital role during time of national crisis.

APN chairman Paul Sanders is writing to the Road Haulage Association, and the Freight Transport Association to ask their aid in lobbying the Treasury for a derogation to take pressure off our most essential supply chain businesses.

HGVs deliver approximately 90+% of UK freight, lifting 1.41 bn tonnes in 2018 and moving 152bn tonne kilometres. Multimodal operations (eg also using trains for freight movements) accounts for only a small percentage of freight, and all freight requires final mile deliveries by HGVs.

Sanders said: “The majority of UK haulage operations are small or SME businesses. Their business model is very vulnerable to cash flow issues and their fuel bills usually account for between 30 and 40% of operating costs.

“A derogation on fuel duty could make a huge difference to business continuity and in minimising the number of losses from our sector,” he adds.

“The UK logistics industry is in the spotlight right now, providing one of the most important jobs next to healthcare. It is imperative we do all we can to ensure business continuity and the protection of vital jobs and distribution services.”

The Association of Pallet Networks represents the UK’s eight pallet networks which between them comprise 30,000 employees, 23,500 vehicles and 750 depots throughout the country.

 
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