Domestic freight set to grow despite ongoing driver shortage, says FTA

The HGV driver shortage is still rife, the FTA has warned, after its latest quarterly industry survey found almost a third of operators are facing long-term recruitment delays.

The Quarterly Transport Activity Survey, sponsored by Santander, also found that members were keen for clarification on what the situation will be with EU national employees after Brexit, but predicted good sector growth for Q3 2017.

Christopher Snelling, FTA head of national and regional policy, said: “At a time when British businesses are becoming increasingly reliant on an efficient supply chain, the lack of qualified drivers available to work could soon become cause for concern.

“And with just over 57% of respondents to QTAS also anticipating a shortage of HGV drivers moving into the second half of 2017, it is clear that the industry needs a recruitment boost to overcome the potential issues which this could cause in the long term to Britain’s ongoing profitability.”

Based on 193 responses, the waste and recycling sectors saw the most growth in Q2 2017. However predicted growth in the retail sector never materialised, with operators reporting no change in activity.

FTA said this is likely to be a sympton of Brexit uncertainty.

Positive third quarter ahead

The report paints a positive outlook for domesic freight in Q3, with growth anticipated across the road transport sector.

UK-based international hauliers reported "modest" levels of growth in Q2 2017, but expect to see this improve in Q3; a potential effect of the pound falling against the Euro making UK hauliers more price competitive.

John Simkins, Santander UK's head of transport and logistics, said: "It is encouraging to see that businesses from across the country are expecting strong growth in domestic activity in the coming months.

"Despite some T&L businesses putting their international expansion plans currently on hold, the T&L sector will continue to play a crucial role in the UK economy.”