The conflict in Ukraine, coupled with pre-existing inflationary pressures, is driving diesel prices to record highs in the UK. Whilst the UK is relatively self-sufficient in petrol, it imports around half of its diesel from abroad, of which one third of this is currently sourced from Russia.
Reports in national newspapers this week claim that the UK is trying to strike a deal with the Middle East to reduce the reliance on Russian diesel, but if the current situation remains unchanged, there is a real possibility that the UK could be rationing diesel as early as next month. Comparisons are already being made to the 1973 oil crisis.
For the UK logistics industry still reeling from the effects of Brexit & COVID, it presents another huge obstacle to overcome. Practically, firms should now be critically assessing their existing transport operations to see what steps can be taken to mitigate these increases and potential supply shortages. In particular:
- Use of transport optimisation and modelling software to replace manual load planning
- Eliminating empty vehicle running and improving load utilisations
- Charging the full cost for all activities such as re-deliveries
- Reviewing service offering to customers and revising in line with actual requirements and contractual terms
- Use of vehicle monitoring software to promote efficient driving techniques
- Increasing driver training & awareness
- Reviewing existing fleet suitability and considering more sustainable options for suitable operations
Davies & Robson can undertake a full review of your transport operation and help identify where efficiency improvements can be made to mitigate the costs of increasing diesel prices. For an informal discussion, please give us a call on 01327 349090.