I posted the below in another thread, on a seperate subject…
There is a shortage of drivers in the UK
But only ( and some of you will have heard this arguement from me before) because there are too many trucks on the roads
to put it simply, if there was a genuine shortage of drivers, then cargo would be stacking up in warehouses unable to be moved.
as the cargo stacked up companies would become desperate to attract a haulier in to take the load, and the only way to do this would be to pay an attractive rate
Haulier likes the extra money, and buys his driver top notch truck and pays huge wages to stop him running off to the haulier round the corner, and everyone lives happily ever after…
But the reality is
The haulier goes in for the attractively paid load and earns more pennies…
haulier earns more pennies and can afford to expand the fleet… He pays his drivers just enugh to keep them and not a penny more, soon there are enough trucks to carry all the loads, Company with cargo has pick of hauliers wanting his freight, so plays one of against the other to get the rates as low as possible…Haulier now has too many trucks and not enough good paying work
haulier goes bust…
now because his fleet is not around… theres not enough trucks to carry all the loads… Company gets desperate to get its freight out of warehouse… puts up rates… and so the merry go round starts again.
This industry is overrun with too many trucks chasing too few loads, this is what drives rates and wages down…
Before deregulation, there was only so many operators licences issued, the amount of trucks on the road was controlled by central government, while this was by no means haulage utopia It did mean that there was not the free for all we have at present.
If we truly want a healthy road haulage industry then I suggest the following measures be implemented
- A restriction on the total number of O licences granted/in operation
- A legal minimum rate per mile for all loads
- "Backloads rates made illegal
- Cabotage laws repealed
- International permits reinstated
- Essential user fuel rebates for hauliers
Now all we have to do is find a political party to vote for at the election who will implement these …
Dont hold your breathe