Keep on Trucking?

Posted on May 27, 2012

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All over the world, the increase in fuel costs is affecting haulage companies. Already, many companies have had to close due to the cost of fuel making it no longer viable to keep on running their trucks.

The haulage companies aren’t the only ones affected either, as it has a knock on effect for the companies used by them such as trailer manufacturers. With haulage companies closing down, there will be less demand on the trailer manufacturers and they could also face issues.

Fuel prices

Over the last few years, fuel prices have been going up at an astonishing rate. The rise in the price of oil, as well as an increased demand in fuel, has been a major contributor to this. In countries like the UK, fuel duty has caused an additional increase that has been too much for some transport and haulage businesses.

All people that travel have been affected by the increased in fuel costs, but since trucks require a lot more fuel and cover a lot more miles than the average person in  car they’ve felt the hit worse.

How it’s affected haulage companies

Trucks have been the worst affected on the roads due to the fuel price rise because of how important fuel is to them. Trucks use up a lot of fuel due to the extra power needed by the engine to move their size and weight, as well as the additional weight being pulled by a trailer. Trucks also cover a lot of miles, running up and down countries while transporting a variety of goods which only adds to the amount of fuel being used up.

Most haulage companies have paid for the fuel increase through their profits, rather than raising the prices for their customers. There are different ways that companies have tried combating the additional costs, such as cutting the number of trucks or customers down.

What does the future hold?

There is no way for haulage companies to know which way the future will go regarding fuel prices. It’s likely that prices will continue to go up due to oil becoming harder to find and get at, but nobody knows for certain.

It’s possible that a more economical method of fueling or running trucks will be developed to decrease the amount of fuel being used up. Some cars are now run on bio-power, and it’s likely that in the future trucks will be too.

Perhaps the trucks and trailer manufacturers will develop a way to make the parts and engine lighter while still maintaining structural integrity and strength under a heavy load, reducing the weight and therefore requiring less effort and fuel to pull.

Should prices continue to rise it’s likely that customers of the haulage companies will see more of a price increase, which will feed directly back into the consumer at the end of the line. It’s also likely that more companies will go out of business due to not being able to keep up with the costs.

This post was written by Amy Fowler on behalf of Vipex the bespoke truck builder. To find out more about their products please click here. Photo Balaji.B

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