Devastating drop in income for road freight operators during lockdown
22 April 2020 | Web Article Number: ME202018886
ROAD freight operators are predicting an 80% drop in their income for the lockdown period, which started on 26 March 2020 and is scheduled to end on 30 April.
This is according to the results of a weekly survey conducted by the Road Freight Association (RFA) amongst its members. This figure has increased by 10% - in last week’s survey, respondents indicated a 70% loss in income.
According to the survey, less than 30% of companies’ fleets are currently active. “Only vehicles transporting essential goods are on the road,” said the RFA’s Chief Executive Gavin Kelly. In addition, 25% of trucking companies’ staff are working on site.
“Our survey shows a general picture of what is happening in the road freight industry – with some operators having totally closed down as they do no essential cargo transport, whilst others are operating anywhere between a shutdown to roughly 80% of capacity. That means that they have no income to meet their financial commitments – salaries, operational maintenance, financial agreements and other costs related to operating a business.”
Looking ahead, 28% of survey respondents said that they would become fully operational “immediately” after Lockdown. A further 33% said it would take them two weeks, with another 10% indicating it would take them two weeks to one month.
“It is truly worrying that on the other side of this lockdown we will see fewer transport operators than what we started with a month ago,” Kelly said.