The disruption to global supply chains, which began at the start of the Covid-19 pandemic and had a significant knock-on effect on businesses around the world, looks set to continue throughout 2022, according to the group's annual Logistics Report. UK Logistics business.

The report has found that global and local factors have caused problems for all elements of the supply chain, with problems such as shipping container supply disruptions, HGV driver shortages and a lack of semiconductor microchips. , all of which have an impact on the way goods move around the world. But as David Wells, CEO of Logistics UK explains, the industry has reacted to these challenges with typical flexibility and pragmatism to continue to serve UK businesses and consumers.

“The last two years have been a period like no other for our supply chain,” he said, “with disruptions forcing constant changes in the way goods move both domestically and internationally. It is testament to the dedication of staff throughout the supply chain that solutions have been provided to problem after problem with minimal disruption, from shifting shipping containers to a lack of HGV drivers to move goods, and our highly interconnected supply chain has remained largely intact.

“At the same time, our members have faced significant increases in fuel and freight costs. Diesel prices are up 22 percent in the year to December 31, 2021, while freight rates have also risen as demand returns after the pandemic, accompanied by wage inflation. With average fuel prices reaching the highest level on record and inflation rising, there has been an unsustainable burden on logistics companies that traditionally operate on razor-thin margins of around 1 percent.”

However, Wells added that there are some signs that the industry is beginning to recover.

“The government's decision to reduce the fuel levy in the March 2022 Spring Statement by 5 people will result in an average saving of over £2,000 per annum per 44 tonne lorry; however, as other operating costs rise sharply thanks to rising inflation, and the cost of pumps continues to rise, operators could lose these cost savings in the short to medium term,” he said.

“Furthermore, following an acute shortage of qualified drivers, the increased availability of tests for vocational drivers, as identified by DfT, is beginning to alleviate the worst of the problem and ensure that a lack of drivers is not a barrier to growth and business recovery. Data shows the number of people taking heavy vehicle road tests has grown 53,5% in Q2021 2019 compared to QXNUMX XNUMX and the industry is committed to providing more access to training and tests for all those who wish to join the profession and retain existing ones. staff."

Wells continued: “Signs of recovery are there, as the Logistics Report indicates, but there is still much work to be done and ongoing economic pressures could easily put a damper on any significant growth forecasts. It is clear that, after the impacts of COVID-19, supply chains will need to change the way they work. Profitable and efficient shipping is no longer guaranteed under the previous working model and the industry's reliance on just-in-time delivery systems will need to shift to the use of increased storage capacity. However, having seen how far we have come, in just two years, I am confident that the logistics sector is ready to lead the economic recovery in the coming months.”