No great surprise there. Last summer (2008) many couriers and hauliers struggled to keep their costs down and their businesses viable. Every week brought tales of companies folding and closing their doors for good.

For any transport company, their biggest expenditure is fuel. The UK has lots of regulation regarding road safety and the vehicles have all sorts of tests to remain compliant and legal. With the recession still biting transport businesses will really start to suffer. Increasing fuel costs will wipe out any profit margin and lead to job losses. It may lead to some less than ethical companies cutting back on safety and driving vehicles that are not roadworthy.

This also means that the cost of goods will increase in the shops, so the average families food bills will increase leading to cuts being made in their budgets elsewhere. For those that drive for a living, it becomes really tough. Taxi drivers have been telling me how quiet they have been for months, increased fuel prices will mean they also have to put their prices up. Getting a cab to the station will become a luxury many can no longer afford. Taxi driver now joins the dole queue.

Many business people have told me how fortunate they are to be ‘not affected’ by the recession, my question is if the fuel reaches the lofty heights of £1.30 a litre again will it affect you then?

Batten down the hatches people – the recession, job cuts and losses are not over yet. Times are still tough for many small businesses.

Sarah

Twitter for Couriers

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