Collapse Of Halesowen Haulage Firm Blamed On Fuel Costs

Collapse Of Halesowen Haulage Firm Blamed On Fuel Costs

Rising cost of fuel, driver shortages and the coronavirus pandemic have all been blamed for the collapse of a haulage business.

Adam Jones and Sons said “significant trading losses were incurred during Covid” and the only option was to cease to trade.

Based in Halesowen, West Midlands, the firm appointed administrators in May.

It had operated a fleet of more than 70 trucks and also had bases in Lancashire, Derbyshire and Hampshire.

Joint administrator FRP Advisory said all 50 staff had been made redundant because there was no prospect of investment or a sale.

Partner David Acland said: “The Covid-19 pandemic has significantly impacted firms from all sectors in the UK, including those in the transport and haulage sector.”

A statement released by the administrators said: “Significant trading losses were incurred during Covid, mainly as a result of key [Adam Jones] customers ceasing production.”

‘Hauliers’ discount’

It said the company had been unable to return to profitability and driver shortages and fuel costs had made things worse.

Other companies in the region have also complained about the rising cost of fuel.

Richard Marshall, a director of haulage company G Force Express, based in Telford, Shropshire, said he did not think fuel prices would reach the current level “in a million years”.

He said an average lorry in his fleet would have cost £40,000 a year to fuel with diesel in 2021, but he expected that to rise to £61,000 at the current prices.

Mr Marshall said he would like to see hauliers get a discount on their fuel, similar to the deal offered to agriculture with “red diesel”.

“If we can charge less, that will immediately bring the prices down in the shops,” he said.

Russell Field

Russell Field is Managing Director of a contemporary marketing agency with clients in the haulage, distribution, freight and logistics industries. Russell holds a BSc (Hons) in Marketing and specialises in digital marketing and research.

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