Graham Eardley, Eardley International
Lower fuel costs, lower transport costs?
According to Graham Eardley from Eardley International there will be no reduction in costs for the time being. "Six or seven years ago fuel costs spiralled and transport companies were forced to absorb these increases. We managed this for the first two to three years however eventually rates did start to increase as customers realised that the status quo was unsustainable.”
Despite the increase in haulage rates the margins for transport companies never got back to the same level.
Eardley explained that it was generally the case that fuel accounted for 33% of operating costs, but for the last four years it has been more like 45%. "Now it is starting to rebalance the books. Of course customers are asking for cheaper rates but they are forgetting that we absorbed the first three years of the increase, so yes, the pressure is off and it is easier to operate but we are still not back to the margins that we should be making."
He reckons the fuel price will need to drop by a further 5 – 10% before there will be a reduction in transport rates.
There is another problem facing the transport sector and according Eardley it will be the biggest one that the sector will face in the coming years. There is serious shortage of properly qualified drivers and due to this driver wages are increasing dramatically, a simple case of supply and demand.
For more information:
Graham Eardley
Eardley International
Tel: +44 1576300500
Fax: +44 1576300555
transport@eardleyinternational.com
www.eardleyinternational.com