ICSM Logistics Insolvency News: hikes in diesel prices; haulage fraudsters convicted; Grenfell disaster forces firm into insolvency; plus more firms go to the wall
By Harry Mottram: If the heat wasn’t bad enough and the way it affects logistics then there’s something even more troubling for hauliers: the hike in diesel prices. The fall-out from the continued unresolved on-off war between the USA and Iran has caused global financial instability and rises in oil, gas and fertiliser prices due to the closure of the strait of Hormuz. The UK Government and other European powers are powerless in their attempts to bring the conflict to an end as America and Iran are locked in a long term stalemate.
Logistics trade published Transport have reported on the growing crisis for Hauliers. They reported on the recent wave of pump price increases that had even prompted some hauliers to question whether fuel rationing may happen. In a report this month in Transport FleetCheck CEO Peter Golding said petrol prices were now at a high for 2026 and diesel wasn’t far behind: “With the possibility of a lasting ceasefire seemingly unlikely at this point in time, fleets are increasingly concerned about the likelihood of fuel price escalation into not just Q3 but Q4 and 2027. They’re anxious that, at a time when general fleet costs are under pressure, fuel prices may start to spiral. The fear is that, while oil producers are looking for alternative routes to alleviate supply issues, the current situation could persist for not just months but years.”
Ian Carrotte of ICSM whose business membership group includes a large number of hauliers said that high fuel prices were one of the reasons that push firms into insolvency. He said rises in fuel prices are something hauliers cannot control as oil regularly hits $100 a barrel.
Fraud behind Genesis collapse
Journalist Dina Kovacevic of Insolvency Insider UK has reported on how the High Court has found the Genesis haulage company guilty of fraudulent trading ahead of its collapse five years ago. She wrote: “The High Court has found four individuals liable for fraudulent trading in connection with failed haulage company Genesis (2014) UK Ltd, ruling that the business was carried on with intent to defraud creditors after a worldwide freezing order was imposed in May 2021.”
The case before ICC Judge Mullen held that the accused had been guilty of moving assets and diverting payments beyond creditors’ reach. Marcus Hughes, Tracy Greening, David Hughes and Daniel Clarke were knowingly involved, to differing degrees for the fraud. The proceedings said Dina were brought by SQN Global Limited, ‘which had taken an assignment of the liquidators’ section 213 Insolvency Act 1986 claim and had an admitted claim of about £6.15 million in Genesis’s liquidation.’
Ian Carrotte of ICSM said this was classic case where those who remained in charge of firm had deliberately tried to move money out of the reach of creditors who were owed money. He said that it was only discovered by a traffic commissioner who spotted that Marcus Hughes was still involved in managing the firm despite an earlier disqualification. Incredibly despite a freezing order by SQN money kept leaving the firm. Dina Kovacevic reported: “A further hearing will determine the precise contribution amounts, interest and costs.”
The shadow of Grenfell
A haulier has gone out of business as a result of work halted by the Grenfell Tower Fire. Before the disaster that claimed many of the lives of residents in the tower block the firm had been profitable and was a major contractor in London. of St Albans-based Gradewell Plant & Haulage was hit by improved building regulations introduced after the disaster which hit its construction wing. Increased costs associated with hikes in building materials, the fall out from Covid, hikes in fuel costs, the bad Brexit business bill which caused problems to its international logistics let to it becoming insolvent. The firm owed more than £6m to unsecured creditors which in a report in Motor Transport by Chris Tindall would be unlikely to be paid.
More firms hit the rocks
Northamptonshire logistics firm Instant Despatch Services (IDS), which trades as Loop Logistics, has joined an increasing number of hauliers falling into administration this year reports Carol Millett for Motor Transport.
In the same publication there was an update on the on going administration of Preston firm report on H. Parkinson Haulage Limited. The report read: “However, almost two years on, the haulage company has issued a Notice of Intended Dividends, a formal announcement by an insolvency practitioner that they have sufficient funds and plan to make a payout to creditors. The Notice of Intended Dividends was posted on The London Gazette in the early hours of 8 May, providing the first updates in well over 18 months.”
More hauliers to go under include Yorkshire-based Roger Petch Transport, and Lincolnshire-based J Bradshaw & Sons, which traded as Bradshaws Transport plus North Yorkshire heavy haulage specialist GCS Johnson.
Ian Carrotte of ICSM said that fuel costs were a major factor in all of these collapses – a universal issue for just about every business but for hauliers a hike in diesel can literally trigger insolvency. He said: “The sooner the situation in the Middle East is resolved and peace breaks out he sooner there will be a more settled business climate for hauliers.”
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