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Behind the wheel - in 2020 the European road freight industry had a driver shortage of around 400,000
No silver bullet for driver shortage
Europe ’ s driver shortage is set to get worse , a new report * warns . Logistics consultancy Transport Intelligence ( Ti ) says that despite the many strategies being implemented to alleviate the driver shortage , there clearly is no ‘ silver bullet ’ to the crisis . According to Ti ’ s estimates , in 2020 the European road freight industry had a driver shortage of around 400,000 . The most heavily affected countries were Poland , the UK and Germany . The UK is in a particularly difficult position as it is not only grappling with Brexit , but it also saw many European workers leave over the course of the pandemic , as fears over lockdowns grew . Ti says that truck drivers in the UK are “ lost in a sort of Bermuda triangle of Brexit , pandemic and tax reforms / peak seasons ” leading to a pressing shortage . Brexit effectively ended recruitment from the EU , making it legally impossible to recruit foreign HGV drivers . The COVID-19 pandemic created a backlog of tests and saw around 15,000 Eastern European drivers returning home . Finally , newly introduced tax reforms exacerbated the exodus of EU drivers . From 2010 to 2017 the number of EU nationals driving HGVs in the UK rose from 10,000 to 45,000 , and fell to 42,000 in early 2020 , possibly related to Brexit . From March to June 2020 , the number of EU HGV drivers declined by another 15,000 , to 25,000 , recovering only slightly to 28,000 by the end of the year .
Additionally , the pandemic is also believed to have accelerated the retirement rate in the industry . The so-called IR35 reforms by UK ’ s HM Revenue & Customs exacerbated the issue . The reforms required all contractors with a turnover of £ 10 million or 50 staff to pay full tax and national insurance on their drivers , starting in April 2021 . Even though this was widely welcomed by industry leaders , the reforms were adding to the shortage as drivers objected to the drop in incomes that came with regularising their tax status . Research suggests that around 12,000-15,000 EU drivers left partly due to the pandemic and another
The truck driver shortage across Europe
5,000-10,000 left due to the tax changes . However , despite the many extraneous factors that have hit the haulage industry there is much that the logistics sector can do to reinforce the haulage industry ’ s image as an attractive profession . Numerous measures are being taken across Europe . These include : the use of apprenticeships and training schemes to attract young people , reducing the minimum age of professional truck drivers , seasonal hiring during peak times , greater use of technology , attracting foreign drivers , recruiting ex-army personnel , and attracting female truckers who account for just 2-3 percent of drivers across Europe . Overall , the report says that improving the working conditions of drivers will not only help hauliers retain existing personnel , it will also help in recruiting new employees . While it is down to the employers to ensure good working conditions for their workers , the role of enforcement authorities or trade unions in implementing regulations and uncovering ‘ real working conditions ’ cannot be emphasised enough . “ As shippers get a clearer picture of the working conditions offered by their transport partners , the latter will have to change rapidly or find themselves excluded from the market because evidence will show that their entire business model has been based on exploitation of labour ,” the report states . “ Sadly , the threat of transport companies losing anne @ bulk-distributor . com To contribute please email neil @ bulk-distributor . com
business may be the turning point in the improvement of working conditions of drivers and consequently in the increased attractiveness of the job .” Elsewhere , trade body the Chemical Business Association ( CBA ) said it latest industry survey shows that 96 percent of members responding currently have issues with road haulage in the UK ( against 62 percent in its previous survey completed in June 2021 ) and 78 percent have similar issues in Europe . While chemicals represent a relatively small sector of the distribution industry , the CBA says they have a disproportionate economic and social significance . “ We have voiced our concerns on several occasions that supplies of chemicals to key business sectors , such as water treatment , fuel , and oil additives , are likely to suffer from delayed or cancelled deliveries resulting in consequences for public health , the environment , and economic growth ,” the CBA said in a briefing on the crisis . The CBA echoed the main points of the Ti report in that while levels of pay are a factor , a poor perception of the profession , lack of facilities , and difficult working conditions have also created issues in retaining existing drivers as well as attracting and recruiting young people and women . Current data from the UK ’ s Office National Statistics shows that in March 2019 there were 304,000 HGV drivers in the UK but by March 2021 , this had fallen dramatically to 256,000 - a 16 percent reduction in just two years . This rapid decline was made up of nearly 14,000 EU drivers while the remaining 31,000 were UK based drivers . For the UK chemical supply chain , where HGV drivers must hold a further ADR qualification , the problem is relatively speaking , more acute , the CBA said . * European Driver Shortages , by Violeta Keckarovska , Senior Research Analyst , Ti .
www . ti-insight . com