The Driver Shortage

With the impacts of driver shortages rearing their ugly head across the UK supply chain – approaching peak, is it only going to get worse – is it time to change how you manage your transport?

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.

• Already an ‘elderly’ workforce, with predictions of big retirements in 2020 since 2015
• 40,000 drivers short in 2017 with projections now at 70 – 100,000 by the end of the year
• Huge shortage of driver parking and welfare facilities – reducing the general quality of life.

Then 2020 happened…

COVID

• Highest numbers of drivers retiring and leaving the industry.
• The lowest number of drivers being able to train and test to enter the industry. (-45,000)
• Furloughed drivers finding greener grass elsewhere.
• As demand and pay for domestic van drivers has escalated HGV drivers have migrated across
• Stress and cost of COVID testing for international transit.
• Destinations and service stations removing access to welfare facilities.
• Need to work closer to home – decrease in trampers.

BREXIT

• The huge exodus of European drivers creating a massive shortage (25,000) a third returning home
• Huge reduction of EU drivers available for work in the UK under new cabotage
• European drivers will CHOOSE not to take a UK job if ANY other EU job is available.
• Driver salaries were being kept low by eastern European drivers living or working in the UK
• Increased cost and time of 2021 customs procedure including T1.
• The impact of European authorities’ negative attitude towards the UK trying to do business with the EU.
• Kent Pass and conditions
• Increase in fuel prices.
• Increase in cost of repair and maintenance.
• Increase in costs of secure parking.
  • Increase in cargo theft – stress and cost.
• Increase in trailer theft.
• Shortage of trucks and trailers from manufacturers and used markets.

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.

• As well as alterations to cabotage rules, business groups want the government to relax post-Brexit immigration rules by introducing a temporary worker visa for HGV drivers and adding the occupation to the Home Office Shortage Occupation List (along with butchers). even if just seasonal.
• With many HGV training centres having to turn to straight haulage during the pandemic to make ends meet – we need to incentivise and fast-track the complete reopening of training and test centres.
• It would be very useful if the UK industry representative bodies could invest in a campaign encouraging new blood into the industry as well as drivers who’ve left.
• The government could look at funding or grants for workers looking to train as HGV drivers or at least cover the test fees. Improve funding, resources, and places for LGV apprentices.
• The tests them selves – could they be shorter? broken down into components? we compromise safety but there must be some flexibility now we have broken away from Europe?

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:

https://www.gov.uk/government/news/government-takes-further-action-to-tackle-hgv-driver-shortage

https://www.gov.uk/government/news/government-announces-package-of-measures-to-support-road-haulage-industry