| KN60052 |
| KEY NOTE Haulage : September 2002 |
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This report covers: road haulage,
Companies covered include: Christian Salvesen, Eddie Stobart, Exel, Hays Distribution Services, Ryder,Tibbett & Britten Group, TNT UK,Fiege Merlin, TDG, Wincanton,
EXECUTIVE SUMMARY
The road haulage industry is responsible for transporting most of the UK's freight. In 2001, this sector moved 149 billion tonne kilometres of UK freight and lifted 79.4 percent of British goods. However, over the past few years, the UK road haulage industry has experienced difficult trading conditions and volumes of road freight fell by 5.7 percent between 2000 and 2001, in billion tonne kilometre terms.
The road haulage industry is made up of five key sectors: own account distribution; contract distribution; shared user distribution; express deliveries; and removals. Contract distribution is the sector of the road haulage industry that is at the cutting edge of customer service and supply-chain management. The removals sector is currently undergoing a period of growth linked to the current buoyancy of the UK consumer property market.
All sectors of the road haulage industry have been adversely affected by the high levels of fuel duty and vehicle excise duty. A number of reforms introduced by the present Government have reduced the cost burden of these taxes on the industry, but road haulage associations claim that UK road transport taxes remain higher than those in other EU countries. The UK manufacturing sector is currently in recession, which is adversely affecting all of the road haulage industry from shared distribution to the commercial removals sector. A further concern for the entire industry is the planned introduction of the working time directive. This is likely to push up overheads and lead to a shortage of drivers in the road haulage business.
The development of information technology (IT) systems, which have already been widely adopted within the industry, is likely to continue, especially in the contract distribution sector, where customers are continually demanding added-value services and supply-chain transparency. The shared user distribution, contract distribution and express deliveries sectors are likely to see increasing consolidation via takeovers and mergers, as these sectors strive to gain economies of scale and international reach.
Growth in the road haulage industry as a whole is likely to be subdued over the coming years. This is due to the continuing economic difficulties and planned environmental restrictions that will curb industry expansion in volume terms in the UK
TABLE OF CONTENTS
| 1. Market Definition | |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| Own Account Distribution | 2 |
| Contract Distribution | 3 |
| Shared User Distribution | 3 |
| Express Delivery | 3 |
| Removals | 3 |
| MARKET TRENDS | 4 |
| Industry Consolidation | 4 |
| Levels of Road Freight | 4 |
| Increasing Length of the Haul | 4 |
| Road Haulage Vehicles | 4 |
| Changes in the Road Haulage Cargoes | 4 |
| Changes in the Road Haulage Industry Structure | 4 |
| MARKET POSITION | 5 |
| The UK Freight Market | 5 |
| Table 1: Freight Transported in the UK by Mode (billion tonne kilometres, million tonnes and percent), 1997-2001 | 5 |
| Investment in Road and Related Facilities | 7 |
| UK Geography | 7 |
| Flexibility | 7 |
| Competitive Pricing | 7 |
| Technological Developments | 7 |
| Internationalisation | 8 |
| The European Freight Market | 8 |
| Table 2: Road Freight Moved Within the EU (billion tonne kilometres and percent), 1990 and 1999 | 8 |
| 2. Market Size | |
| THE TOTAL MARKET | 10 |
| Table 3: The Apparent UK Market for Road Transport Services by Sector by Turnover (£m and percent), 1997-2001 | 11 |
| OVERSEAS TRADE | 12 |
| The Size of the International Road Freight Market | 12 |
| Table 4: International Road Haulage as a percentage of the Total Road Freight Market (million tonne kilometres), 1997-2001 | 12 |
| UK Haulage Industry European Market Share | 13 |
| Table 5: Bilateral Traffic Between UK and EU Countries Regarding Vehicles Registered in the UK and the Corresponding EU Country (goods loaded and percent), 2000 | 13 |
| Movement of Goods into the UK | 14 |
| Table 6: International Road Haulage by UK-Registered Vehicles Over 3.5 Tonnes by Inward Journey (000 tonnes, million tonne kilometres and percent), 2000 | 15 |
| Movement of Goods Out of the UK | 15 |
| Table 7: International Road Haulage by UK-Registered Vehicles Over 3.5 Tonnes by Outward Journey (000 tonnes, million tonne kilometres and percent), 2000 | 16 |
| 3. Industry Background | 17 |
| RECENT HISTORY | 17 |
| Number of Companies | 17 |
| Table 8: Number of VAT-Registered Enterprises Engaged in Transport Activities (£m), 1997-2002 | 18 |
| EMPLOYMENT | 18 |
| Table 9: Number of Employees Involved in Transport and Transport-Related Industries (000), March 1997-2002 | 18 |
| REGIONAL VARIATIONS in the marketplace | 19 |
| Table 10: Goods Lifted by Origin and Destination (million tonnes), 2001 | 19 |
| DISTRIBUTION | 20 |
| how robust is the market? | 20 |
| LEGISLATION | 21 |
| key TRADE ASSOCIATIONS | 21 |
| British Association of Removers | 21 |
| British International Freight Association | 21 |
| The Despatch Association | 22 |
| Freight Transport Association | 22 |
| Heavy Transport Association | 22 |
| Institute of Logistics and Transport | 22 |
| The Road Haulage Association | 22 |
| 4. Competitor Analysis | |
| THE MARKETPLACE | 23 |
| MARKET LEADERS | 23 |
| Christian Salvesen PLC | 23 |
| Eddie Stobart Group Ltd | 24 |
| Exel PLC | 25 |
| Fiege Merlin Ltd | 26 |
| Hays Distribution Services Ltd | 27 |
| Ryder PLC | 28 |
| TDG PLC | 29 |
| Tibbett & Britten Group PLC | 29 |
| TNT UK Ltd | 30 |
| Wincanton PLC | 31 |
| Other Companies | 32 |
| OUTSIDE SUPPLIERS | 32 |
| The Vehicle Manufacturing Industry | 32 |
| The Oil and Petroleum Products Industry | 32 |
| The Warehousing Sector | 33 |
| The Information Technology Sector | 33 |
| ADVERTISING AND PROMOTION | 33 |
| Exhibitions | 33 |
| 5. Strengths, Weaknesses, Opportunities and Threats | |
| STRENGTHS | 35 |
| WEAKNESSES | 35 |
| OPPORTUNITIES | 35 |
| THREATS | 36 |
| 6. Buying Behaviour | |
| CUSTOMER PROFILES | 37 |
| Own Account Haulage | 37 |
| Manufacturing | 38 |
| Construction | 38 |
| Retailing | 38 |
| Express Deliveries | 39 |
| Removals | 39 |
| 7. Current Issues | |
| ROAD TRANSPORTATION TAXES | 40 |
| Fuel Duty | 40 |
| Vehicle Excise Duty | 40 |
| Congestion Charges | 41 |
| Euro Vignette | 41 |
| EU Harmonisation Proposals | 41 |
| SKILLS SHORTAGES | 41 |
| E-COMMERCE | 42 |
| THE EURO | 42 |
| EUROPEAN AND INTERNATIONAL MARKETS | 42 |
| SERVICE DEVELOPMENT | 43 |
| CUSTOMER DEMANDS | 43 |
| CORPORATE ACTIVITY | 43 |
| LEGISLATION | 44 |
| ENVIRONMENTAL ISSUES | 45 |
| 8. The Global Market | |
| European MARKET SIZE | 46 |
| Trends in Europe | 46 |
| THE FUTURE | 47 |
| 9. Forecasts | |
| INTRODUCTION | 48 |
| Forecasts 2002 To 2006 | 48 |
| Table 11: Market Forecasts for Road Vehicles Over 3.5 Tonnes by Volume (billion tonne kilometres), 2002-2006 | 48 |
| FUTURE TRENDS | 49 |
| Further Industry Consolidation | 49 |
| Europeanisation/Internationalisation | 49 |
| More Added-Value Services | 49 |
| Increased Supply-Chain Transparency | 49 |
| Growth of E-Commerce | 49 |
| Competitor Forecasts | 49 |
| 10. Company Profiles | |
| Christian Salvesen PLC | 51 |
| Eddie Stobart Ltd | 53 |
| Exel PLC | 55 |
| Hays Distribution Services Ltd | 57 |
| Ryder PLC | 59 |
| Tibbett & Britten Group PLC | 61 |
| TNT UK Ltd | 63 |
| 11. Further Sources | |
| Associations | 65 |
| Publications | 67 |
| Directories | 67 |
| General Sources | 68 |
| Bonnier Information Sources | 68 |
| Government Publications | 69 |
| Other Sources | 70 |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004
