Fuel protests could mean delays to goods for West Country and Wales, warns ParcelHero

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  Posted by: electime      4th July 2022

Ongoing go-slow motorway protests over the price of fuel could impact on retail supply chains and logistics networks, warns the home delivery expert ParcelHero.

Rolling roadblocks on UK roads, particularly around the West of England and Wales, could impact on supply chains and delivery networks, warns the home delivery expert ParcelHero. Protestors have brought parts of the M4 and M5 to a standstill, demonstrating against high fuel prices in the UK.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T. says: ‘Rolling 20mph roadblocks have caused massive tailbacks on roads in the West Country and leading into Wales, as well as other parts of the UK, today. This could have an impact on deliveries to retail stores and impact on supply chains across the country.

‘So far there has been little reported disruption to parcel networks, but items being transported on motorways such as the M4 and M5 to distribution centres for ongoing local delivery could be impacted.

‘The protests are reportedly being organised on social media under the banner Fuel Price Stand Against Tax, However, the irony is that the freight and logistics companies being impacted by the jams are suffering the cost of increased fuel prices as much as anyone. The latest Office for National Statistics (ONS) Business Insights report for 30 June, showed 60.9 per cent of transport and storage companies were battling with significantly increased costs because of the rise in fuel prices. However, only 24.8 per cent passed these increased costs on to customers, because the market is so competitive currently.

‘ParcelHero has argued for some time that the UK’s high fuel duties should be reduced while we face the “perfect storm” of Covid recovery, the impact of Putin’s war in the Ukraine and Brexit. However, blocking vital roads only adds further problems for hauliers and delivery networks.

‘Many haulage and courier companies operate on relatively low margins, so the sector has little protection or wiggle room against increases in fuel and equipment costs. Nor can it absorb the costs of deliberate delays to vital deliveries. To find out more about how logistics companies and their partner retailers are innovating to reduce costs and maximise the potential of technology,  see ParcelHero’s study on ‘Dark Stores’ and the High Street of the future at: https://www.parcelhero.com/research/shop-of-the-future