Freight businesses need greater certainty over fuel duty and wider operating costs as they plan for the year ahead, according to logistics firm ABC Cargo.
The company says the Autumn Budget will be closely watched by freight operators already facing pressure from transport, warehousing, energy, staffing and infrastructure costs.
ABC Cargo chairman Dr Shareef Abdul Khader said fuel duty was likely to be one of the sector’s biggest concerns.
“Fuel duty will understandably be one of the biggest Budget questions for the freight sector this year,” he said.
He warned that uncertainty over future fuel costs made it harder for businesses to price contracts, plan investment and forecast expenditure.
“The current position means businesses are looking towards January without certainty over what they will ultimately be paying,” he said.
“For an industry where transport costs form such a fundamental part of day-to-day operations, that certainty matters when businesses are pricing contracts, planning investment and forecasting their costs for the year ahead.”
Khader said the issue extended beyond road haulage because road transport remains a key part of international freight movements.
“A shipment might travel thousands of miles to the UK by air or sea, but its journey does not end when it reaches an airport or port,” he said.
“It will often still require road transport to reach a warehouse, distribution centre, business or customer.”
He said international freight, domestic transport, warehousing and distribution should therefore be viewed as parts of the same supply chain.
ABC Cargo also wants the Budget to be assessed on the combined impact of different business costs rather than fuel duty alone.
Khader pointed to warehousing, energy, business rates, staffing and investment in infrastructure and equipment as other significant expenses facing the sector.
“For freight businesses, I think one of the most important questions following this Budget will therefore be the cumulative effect of the measures announced,” he said.
“A business can potentially manage one cost increasing. The challenge becomes much greater when several different parts of the supply chain become more expensive at the same time.”
The company is also looking for measures affecting investment and international trade.
Khader said the cost of moving goods into and out of the UK would remain important if the government wants to encourage exports and maintain Britain’s competitiveness as a trading nation.
For smaller businesses considering exporting for the first time, he said demand from overseas customers was only one part of the calculation.
Companies must also consider freight charges, customs requirements, documentation, domestic transport and whether products can be delivered reliably and at a competitive cost.
“For a smaller company considering exporting for the first time, competitiveness is not simply about whether somebody overseas wants to buy its product,” Khader said.
“It also has to consider freight, documentation, customs requirements, domestic transport and how reliably and economically it can get that product to its customer.”
The same pressures apply to importers, with many UK businesses dependent on overseas products, components and raw materials.
Khader said confidence in supply-chain costs and reliability could influence decisions on pricing, stock levels and future investment.
He argued that the Budget should therefore be viewed in the context of the wider conditions needed to help businesses move goods and invest.
“That includes clarity over fuel costs, but also the cost of warehousing and distribution, energy, infrastructure and the support available to businesses wanting to trade internationally,” he said.
Khader said logistics should be seen as a core part of the economy rather than simply an overhead.
“Logistics is sometimes treated as a cost that sits behind the economy, but in reality it is part of the infrastructure that allows the economy to operate,” he said.
“Manufacturers need components delivered. Retailers need stock. Construction businesses need materials. Exporters need access to overseas markets and importers need dependable international supply chains.”
He said the sector would ultimately judge the Autumn Budget on the combined effect of its measures on the cost, competitiveness and predictability of moving goods.
“When we assess the Autumn Budget, the important question for our sector will therefore not be whether one individual announcement is positive or negative,” Khader said.
“It will be what all of those decisions mean collectively for the cost, competitiveness and predictability of moving goods through Britain and around the world.”