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Industry associations remain divided over the support the logistics sector requires during the COVID-19 crisis, with the Association of Pallet Networks (APN) demanding a fuel duty derogation and the FTA preferring the Treasury concentrate on alleviating fixed costs.

Last week the APN, which represents the UK’s eight pallet networks, issued a call for an exemption from fuel duty, by way of red diesel use, or an exemption certificate issued against operator licences.

APN chairman Paul Sanders said: “The majority of UK haulage operations are small or SME businesses. Their business model is very vulnerable to cash flow issues. A derogation on fuel duty could make a huge difference to business continuity and in minimising the number of losses from our sector.”

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However, the FTA’s Christopher Snelling thinks the move would be premature: “FTA does not consider this the right move at the moment. The industry is divided into those with plenty of work, who are using fuel but are also being paid; and those who do not have work and therefore are not using fuel.

"However, the second group does still face fixed costs and their businesses are at risk. We are asking the Treasury to consider more help with fixed costs, such as leases or rates.”

But Snelling admitted the fuel derogation could help at a later stage. “When the crisis is over, a fuel derogation could potentially do a lot of good to get the economy and the logistics industry moving again,” he said.

The RHA is understood to be considering the APN proposal but had not responded to motortransport.co.uk at the time of going to press.

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