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11.3.19
INNOVATION. EFFICIENCY. RELIABILITY. Disorderly EU exit will adversely affect logistics sector, with recruitment major concern BOOK NOW
No-deal will cost billions
MTAWARDS.CO.UK
By Carol Millett
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OPERATORS IN THIS ISSUE Bibby Distribution .................................p8 CM Downton .......................................p14 Canute Haulage Group ........................p16 DX Group ..............................................p6 Eddie Stobart Logistics ..........................p3 Gregory Distribution ..............................p8 Howard Tenens......................................p4 Knowles Transport ..............................p12 Tesco .................................................p12 Wincanton .......................................p3, 8 Yodel ..................................................p16
A disorderly Brexit could result in the UK logistics sector suffering losses of £6.7bn a year by 2024, according to a report from workforce management consultancy Quinyx. The report compared the predicted growth and economic output of the UK’s logistics sector blue-collar workforce under a disorderly and an orderly Brexit scenario. The study defined a disorderly Brexit as one in which the UK leaves the EU without an agreement or delays its departure in an attempt to arrive at an agreement. An orderly Brexit is one in which the UK and EU sign a with-
drawal agreement and seal new trade agreements within two to three years. It is also assumed that new trade agreements between the UK and other major trading partners are established before 2024. The research found that under an orderly Brexit the increase in economic output generated by the UK’s logistics workers in manual roles would be £9.8bn a year by 2024. This compares with just £3.1bn under a disorderly Brexit – a 68% reduction equating to a loss of £6.7bn a year. These losses would largely be generated by a lack of access
to manual workers from the EU, the report said. It added that 62% of UK logistics businesses predict that leaving the EU will negatively effect their ability to hire drivers, packers and warehouse workers. It warned that some regions will be hit harder than others with London, the east and the south-east seeing the greatest fall in available workers and economic output under a disorderly Brexit. The research, which looked at the Office of National Statistics’ labour force data and included interviews with
senior decision makers in more than 100 logistics firms, also found that under any Brexit scenario employers in the sector expect to lose approximately 21% of their blue-collar workforce. Despite this, 16% of logistics businesses have no post-Brexit plan for recruitment, the research found. With 38% of employers in the logistics sector already struggling to recruit and 44% reporting retention problems, the report warned that logistics firms need to address issues such as unsociable hours, low pay and a lack of progression to attract and retain these workers.
Bad week for Palletways as Duncan Adams and TAS close doors Palletways has lost two longserving members within days after Grangemouth-based Duncan Adams and TAS Transport, near Heathrow, were both placed into administration last week. Deloitte was appointed administrator of Duncan Adams last week, and confirmed to MT that 132 of the haulier’s 144 staff were made redundant. According to Deloitte, it had a fleet of about 100 trucks and an annual turnover of around £16m. Michael Magnay and Clare Boardman of Deloitte said in a statement that because of certain client contracts, the company had been incurring significant losses.
“Together with difficult trading conditions in the industry over the past couple of years, these factors created cash pressure in the business. “Potential sale opportunities were explored by the business before the administrator’s
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appointment. However, in the limited time available, this did not lead to any serious expressions of interest. Accordingly, the administrator is implementing an organised winddown of the business,” they said.
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Caledonian, Pollock (Scotrans) and Palletways Glasgow are now delivering into the territory formerly covered by Duncan Adams. TAS Transport offered air freight and international cargo services from its base at Bilton Way, Hayes, Middlesex. The haulier was accorded a Palletways Platinum award in 2018, a status reserved for the best-performing members in the network. However, in a letter to depot principals seen by MT, Barry Byers, network development manager at Palletways, confirmed that TAS Transport had ceased trading on 1 March and entered administration. “Both Surrey Pallets and
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Palletways London are now servicing the area formerly covered by TAS Transport,” he said.
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07/03/2019 17:06:46