'Difficult time' for hauliers due to Iran conflict

The increase in fuel prices caused by the US-Israel conflict with Iran is causing "a difficult time" for the industry, a haulier has said.

George Simpson runs Marshalls Transport, a distribution, storage, and specialised transport firm based near Pershore, Worcestershire.

Oil and gas prices have surged as a result of the instability in the Middle East, which has had a knock-on effect on petrol and diesel prices.

Simpson said the firm had 33 litres of fuel delivered on Tuesday that had already risen by 6p a litre, adding: "We're now starting to hear forecasts of 20 pence per litre by Friday."

Simpson, whose firm operates about 100 lorries, said: "It is going to affect the haulage industry quite severely. Not only in the price [of fuel], in fact there could be some shortages."

He added: "We use five different suppliers and they're struggling to book deliveries for us for next week. It is a difficult time."

He explained transportation firms had a large proportion of their operating costs tied up in fuel, with trucks averaging between seven and eight miles to the gallon.

"You can guarantee in the haulage industry it's a third in fuel, a third in wages and a third in maintenance and overall costs," he said.

His firm mainly transports food and food packaging across the UK, Simpson said.

"A lot of these products come in from abroad, and you can imagine now, we shall start to see containers being held up."

"So it isn't just the fuel that's causing a problem," he said, "it's going to be container supplies."

He added his firm was fortunate to have a strong customer base and it had already weathered three recessions, so had planned accordingly.

"But it will affect us, there's no doubt about it, and it will affect the haulage industry throughout the UK.

"Some transport firms are going to find it very difficult to continue."

He said it was important the general public did not panic buy fuel, but predicted consumers would ultimately be impacted by increasing costs for firms like his.

"It will have to be passed on to the customer eventually."

Ashley Hill runs a maintenance company and said he paid an extra £10 to fill his vehicle up with fuel.

"When you're filling up with two or three times a week, it does make quite a difference. I've got four vans as well, so over a course of a week you're likely looking at over £100 a week difference."

He said it was a bit of a worry but that the cost would have to be passed on to the customer, calling it a "knock on effect."

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