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The disruption of the shortage of truck drivers in the UK is expected to increase, with more goods not reaching the shelves in the main street, the head of Britain’s biggest logistics outsourcer warned.
Wincanton CEO James Wroath said the extra pressure is likely to hit the transportation industry as demand increases ahead of the start of the Christmas shopping season on Black Friday at the end of November.
‘The number of drivers will take time to rise. This is not going to change anytime soon. “At the moment we are calm before the storm,” he said. “The concern will be as soon as the Black Friday and Christmas peaks come.”
The company, which traces its roots to milk delivery and works with household names, including Argos, Heineken and Unilever, has vacancies for about 600 managers, or 12 percent of the nearly 5,000 it employs.
A combination of Brexit, the pandemic, tax reforms and driving test backlog It is estimated that the United Kingdom did not bring 100,000 carriers to the country’s warehouses and retailers.
As a result, there was a shortage of items from beer and milkshakes to building materials and furniture, while retailers began to reduce the range of products they sold.
While noting that demand was difficult to predict this year, Wroath added that businesses that are most willing to pay more to acquire subcontractors for transportation will be least affected by the shortage.
‘It will depend on what our customers are willing to pay as the resources are exploited. “Supermarkets will be willing to pay more than most for subcontracted transport,” he said.
Wincanton benefited from a 20% increase in revenue in its current fiscal year, driven by strong demand for e-commerce, according to a trade update. It earned £ 1.2 billion in revenue in the year to March.
However, the Chippenham Group negotiates with customers to bear additional costs for hiring and retaining managers.
Wroath said consumers thought logistics services were free because of the cheap next-day delivery by Amazon and deliveries of groceries costing only around £ 5.
His business also serves as the link between carrier and retailer if he does not have enough managers to handle the work.
He added that a temporary relaxation of the rules around foreign executives would help with the Christmas rush, although he said the government is they are unlikely to relieve it.
Wincanton also said in its trade update that it had acquired Cygnia Logistics, which works with BrewDog, Moonpig and Molton Brown, for £ 23.9 million.