Staveley Head

Staveley Head

April 30, 2010 02:00 ET

Rising Fuel Costs Threaten Haulage Companies

FLINT, UNITED KINGDOM--(Marketwire - April 30, 2010) - The effects of the economy may mean that haulage companies have no other option but to increase their prices, according to the Road Haulage Association. Relentless increases in fuel costs have meant that companies have noticed the dramatically adverse effects on their business. So therefore expenditure on any extra inconveniences is practically incomprehensible, making truck insurance even more important than ever to companies.

Maintenance costs have shot through the roof recently and the severe weather conditions we've been experiencing hasn't helped either. The roads have been in a terrible state since the snow and it has meant a noticeable increase in damage to vehicles, resulting in another cost truck companies can do without when owning multiple HGVs which are the source of their income.

Staveley Head, a leading specialist in HGV insurance have voiced their opinion on the matter with Director, Ashley Peters stating: 'Haulage companies cannot afford to have any extra costs in the current climate, so it's vitally important they are well protected with a suitable insurance scheme'.

This couldn't be truer as the cost of fuel has been increasing at a seemingly endless rate over the last year. So the latest decision to stagger the increases every three months rather than once a year is clearly an attempt by the Government to lessen the blow. It has also probably been conceived by the Chancellor to calm angry motorists who were already enduring the highest fuel duty in the EU at the start of the increases. But for the haulage industry this makes no difference whatsoever as the situation is no better for them.

Fuel duty will have increased seven times in 28 months by April 2011 and the effects of this simply cannot be ignored by hauliers. It has become so bad that many have actually be forced out of business as diesel prices, fuel duty and overheads all stack up together and negate the value of any profits. 

That is why there are now calls for increased costs for the companies. Jack Semple, Director of Policy at RHA has stated: "Hauliers are often fearful of asking for rate increases. But customers must recognise that running a professional transport business requires sustainable haulage rates." He also urged the Chancellor to help them put this plan into action. He claims he must recognise the effects of costs to the industry as a whole and encourage firms to 'pay their contractors sustainable rates'.

About Staveley Head:

Based in Flintshire, North Wales, Staveley Head are a family firm who have been in the commercial insurance business for over 15 years. They work with a number of other high-profile firms to seek out the most affordable deals for their clients.

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