How did we get here?
The driver shortage ‘perfect storm’ has arrived via the collision of two big storm clouds over some difficult existing conditions.
Then 2020 happened…
Throw in IR35 – a change in the taxation rules – which has reduced the amount of money self-employed drivers are able to earn. DSV rules for the greater London area and other UK city HGV access restrictions and charges, and despite the newfound public warmth and even affection for commercial drivers for keeping the country afloat during lockdown – these key worker positions have never looked so unattractive.
With over 30% of hauliers reporting being unable to fill HGV positions and many lobbying groups reporting rises in perishing goods and food waste as resellers unable to get them delivered to store.
Is the answer (as always) money?
Well mostly yes, all hauliers are tackling their own shortage of drivers by increasing driver pay, to secure who they have left and entice new ones, and this of course meant the industry saw a 10% increase in pay in April May which had little effect. Manpower has already confirmed they are paying 20% more for drivers, that’s now looking like it needs to be 22- 25% to make an impact.
What about for now?
At this time manufacturers and shippers need to maximise their options, with many hauliers jumping ship and abandoning clients because they are being offered such good rates elsewhere, rather than trying to get what you need from your own restricted pool of carriers, you should update your transport model – look at using a freight forwarder, like FLS, a supply chain manager broker with access to over 50,000 vehicles across Europe and strong buying power, together with a contracted associate fleet of vehicles and all-inclusive customs – it’s the best option for your business in these difficult times.
Government’s current response:
15,000 lines of PPE delivered in record time. Great to use this business in this difficult time.
...it does not matter what challenge you present them with, they step up with a can do attitude that is second to none.
FLS are a fantastic team of people, from the top management down. Every member of the team I have had the pleasure to work with has been extremely helpful and has provided a fast effective solution to the requirement I have given them PPE delivered in record time. Great to use this business in this difficult time.
FLS are a fantastic team of people, from the top management down. Every member of the team I have had the pleasure to work with has been extremely helpful and has provided a fast effective solution to the requirement I have given them