The number of administrations and insolvencies in haulage this year has prompted renewed concerns over their wider impact, including freight capacity and the resilience of the country’s supply chains.
Business advisory firm Leonard Curtis said recent industry trends highlighted that many operators were facing increased financial pressure and these were being driven by rising costs and structural challenges.
This year has seen a slew of companies closing down, including JM Gorry, S&B Haulage, David Murray Transport, Sunhill Transport, JR Dixon, Instant Despatch Services and Roger Petch Transport.
Sean Williams, director and insolvency practitioner at Leonard Curtis, said the sector remained busy and essential, but that “performance for many businesses is fragile rather than robust.
“Industry data shows insolvency levels across all sectors remain elevated, and haulage is no exception.
“Fuel remains one of the most significant pressure points. Geopolitical instability continues to create unpredictable price movements that are difficult to absorb where margins are already thin, and contracts do not allow costs to be passed through quickly.”
Earlier this year, Motor Transport reported that the number of insolvencies may have peaked, as official figures showed there had been 503 in 2023, 471 in 2024 and 401 last year.
However, the RHA warned that the numbers could rise as companies battle increasing costs, higher interest rates, regulatory pressures and geopolitical disruption.
SNAP said every business closure represented a loss of jobs, investment and decades of expertise, but that there were wider implications that extended far beyond the haulage industry: “As more operators disappear from the market, concerns are growing over whether remaining fleets will be able to absorb demand, particularly when the industry is already battling a long-term shortage of qualified HGV drivers,” it said.
“Fewer transport companies mean fewer available vehicles, reduced flexibility during periods of disruption, increased pressure on remaining operators and ultimately higher transport costs that can filter through to businesses and consumers alike.”
SNAP head of commercial, Nick Long, added: “Businesses across the country depend on road freight, yet operators continue to face mounting financial pressures while also competing for a limited pool of professional drivers.
“Those two challenges together create a real risk for the resilience of our supply chains.”
Leonard Curtis said it had agreed over 114 formal time to pay arrangements so far this year, including an 81-month agreement for a haulage company struggling with soaring fuel costs.
It described this HMRC payment plan as “meaningful breathing space” and urged early engagement before a company’s options narrowed: “More so in the haulage sector, than many other industries, due to the complications with regards to the operator’s licence required to trade,” said Williams.
“A licence issue, whether triggered by financial difficulty, a failed inspection, or a missed compliance requirement, can mean that the business is unable to trade almost immediately.
“The window to act is shorter than directors often realise.”
