Many freight haulage companies 'could struggle in 2008'
Date: 03 December 2007
Freight haulage firm Reid Transpor recentlyt said that it was set to call in the administrators and that around 200 jobs could be lost as a result.
Plimsoll's senior analyst, David Pattison, said that the freight haulage company's figures "tell a story that is by no means unique in the industry".
He explained "The figures paint a picture of a company that was heavily under-capitalised and in debt to the tune of £3.5 million.
"The most sobering aspect of this is that, based on the financials alone, Reid Transport doesn't look that different from many other much larger companies in the sector.
"With fuel prices on the increase and the banks tightening their belts, it might not be the last haulage firm to go under."
In fact, Mr Pattison estimated that around a third of all freight haulage firms in the country could struggle during 2008.
He explained that rising borrowing costs would mean that many freight haulage companies may find it hard to stay competitive during the coming months.
Another factor that is making it hard for freight haulage companies to generate profits is the high price of fuel.
For more of the latest haulage and transport news, please visit the Haulage Exchange Haulage News page - all the latest for owner operators and haulage companies.
User Comments
No Comments