ICSM Business News: the perfect economic storm hits hauliers with inflation, hiked interest rates, covid debt, Brexit, labour shortages and fuel prices forcing more firms to go bust
By Harry Mottram: Students of the logistics industry will have seen a number of hauliers go to the wall recently as a perfect storm his the business. The Institute For Government – the charitable think tank working to make Government more effective – has listed some of the reasons why so many have gone bust. And it’s not exactly a state secret as to what these reasons are.
They cite: “The causes of supply chain disruptions in the UK are complex. Labour shortages, Brexit trade barriers, global supply problems and panic buying have all contributed.”
And in the trade press Chris Tindall of Motor Transport has charted the downfall of several firms this autumn. Corporate Solutions with is fleet of HGVs had a £700,000 pre-tax loss six months before its demise. He reported: “The Solihull-based firm closed in October after suffering increasing fuel and driver costs, with the implementation of IR35 rules compounding its problems according to administrators FRP. In a report to creditors, FRP said the off-payroll working rules contributed to the driver shortage and adversely affected the haulier and the subcontractors it required to deliver customer contracts.”
The firm had defaulted on payments to the taxman owes more than a quarter of a million pounds to preferential creditors who are unlikely to get all what they are owed while unsecured creditors are owed an eye-watering £3.1 million pounds.
In a slightly better position are the creditors of Herts-based TV and film transport company and the associated business Green Clover, who provided transport and recycling services to the film and entertainment industries. Chris Tindall reported that joint administrator Guy Holland had managed to sell some of their kit meaning creditors may get around 5p in the pound. Holland said Covid had been the cause of a rise in debt due to the shut down of much of their customers due to the crisis.
Another casualty reported by Motor Transport last month was Loughborough-based Eclipse Distribution who “has entered administration, just a year after its founder sold the business to a private equity firm.” More jobs have gone at the firm with suppliers wondering if they will be paid.
The list goes on with Saints Transport collapsing this summer with Chris Tindall reporting: “…disaster struck, first with Brexit causing a large drop in volume of work and a costly reliance on agency drivers and then the ‘absolutely catastrophic’ effect of Covid on the business: ‘The workload disappeared overnight, but the company’s overheads remained.’”
Behind with tax payments and facing a heft legal bill plus a fall in trade due the firm entered administration on August 1.
ICSM has recorded in its Runners and Riders newsletter a long list of hauliers and associated logistic firms who have gone to the wall. These are just a few of the latest casualties:
LIQUIDATORS APPOINTED
ALL WORLD FREIGHT LIMITED 02147085
EARLS REMOVALS LTD 09181052
LTG DISTRIBUTION LIMITED 10255827
M ADE TRANSPORT LTD 11486295
NVP VEHICLE RENTAL LIMITED 10940919
ONLINE WAREHOUSE LIMITED 05002244
PKS HAULIERS LTD 04802480
AFP VAN HIRE LIMITED 03541339
AJJ TRANSPORT LTD 08106997
ASKIN HAULAGE LIMITED 08444224
BLC HAULAGE CONTRACTORS LIMITED 10349472
BRIDGE AND LOGISTICS LTD 08108393
ERNEST THORPE TRANSPORT LIMITED 03779073
GABRIEL TRANSPORT SERVICES LTD 10306753
GH LOGISTICS LTD 09520501
GOLDEN EAGLE EXPRESS LTD 12433039
GSD LOGISTICS LIMITED 11642715
HARMONY DELIVERY TRADE LTD 09751458
HGV DRIVER RECRUIT LTD 12130216
HK LOGISTICS LIMITED 09756957
H LIGHT HAULAGE LTD 07711052
KANDOLA KURIERS LIMITED 08824131
KINGSTOWN FOOD DISTRIBUTION LTD 10931064
KRZYSZTOF SZCZEPANIAK TRANSPORT LTD. 10521094
LAMBERTS COACHES (BECCLES) LIMITED 02053258
LEADER FREIGHT LIMITED 04128245
LEANCA EXPRESS DELIVERY LTD 11879114
LINAS LOGISTIC SERVICES LTD 09610506
M&M LOGISTICS (NOTTINGHAM) LTD 08198177
PRIMO COURIERS LTD 12193897
PJT EXPRESS LIMITED 10596505
RJG HAULAGE LIMITED 07448047
SILVER LINING COURIERS LIMITED 08067625
S J MURFIN TRANSPORT LIMITED 04939518
SSK LOGISTICS LTD 09902059
SWEENEY CIVIL ENGINEERING & HAULAGE LTD 12005618
TAMAR COURIERS LTD 05462518
THE MUSIC SHIPPING COMPANY LIMITED 05714679
UNITED VEHICLE HIRE LTD 09038620
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk