Tightening Regulations Put the Brakes on London Hauliers
18 January 2012

The managing director of freight distributer and Pall-Ex member Premier Palletised Ltd (PPL) has hit out at increasingly restrictive transport regulations in London, claiming that hauliers are being continually penalised and the industry is being strangled.

 Adam Hopcroft, managing director of PPL, says that transport companies are now squeezed so tight that the industry as a whole in the area may face an unstable future, as more of their turnover is eaten up by trying to meet the new laws. The most recent threat is the introduction of the Greater London Low Emission Zone (LEZ).

 The next stage of the LEZ comes into force on 3 January 2012, affecting commercial vehicles, which will need to conform to the Euro IV emissions legislation in order to drive into the capital.

 Mr Hopcroft said: “This is another heavy blow to the London haulage industry. Several businesses will be forced to spend a huge amount of money replacing perfectly good vehicles – entire fleets in some cases.

 “Even then, those vehicles can’t then be sold to other hauliers in the area because of the legislation. It makes them worthless to any freight or distribution company operating in London.”

 Mr Hopcroft also said that the London Congestion Charge had a significant impact when it was introduced in 2003, with the £10 per vehicle per day toll presenting a significant drain on finances. 

 He added that the cost of fuel alone is enough of a restriction, saying that where once diesel was 10 per cent of PPL’s turnover, it is now 15 per cent and still rising.

 “You can see the effect this has had on the industry when you see that there are no new hauliers in London. Whilst that means less competition for us, it also points to the fact that the market there is not as viable as it once was.

 “It appears that this increasing amount of legislation is put into effect without considering the economic impacts. Nearly every shop in London has its goods delivered by lorry or van. What does it mean to them if they cannot get deliveries, or if the increased cost to the couriers is passed on to them – and, in turn, to their customers.”

 Hilary Devey, founder and CEO of the Pall-Ex palletised freight network and star of the BBC’s Dragons’ Den, has given her support to Mr Hopcroft and PPL.

 She said: “Hauliers operating in London have found business very difficult in recent years, and it isn’t about to get any easier with the introduction of the LEZ. More needs to be done to recognise how much the capital’s economy needs hauliers to operate freely, otherwise the repercussions could be felt by far more people than those in logistics.”