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HGV driver shortage – what’s the impact?
Thursday, 2 September 2021
By Bronwyn Magee
A shortage of HGV drivers is putting pressure on UK supply chains across the country, with reports of less choice on supermarket shelves. According to anecdotal reports, some retailers have warned that the situation may worsen in coming weeks and have called on the government to help alleviate pressure through various measures.
The shortage is being driven by a number of factors. Firstly, COVID-19 limited the number of HGV driving tests available last year, with over 30,000 test slots lost according to the Road Haulage Association (RHA). This has limited the number of drivers entering the industry. Secondly, the UK’s exit from the EU has limited our ability to source labour from Europe, which has been further complicated by the pandemic. The RHA estimates the shortage now stands between 60,000 and 100,000 drivers.
To aid the situation, the Department of Transport has temporarily relaxed the rules on driver hours. The government has also suggested the number of driving tests available will be increased to help clear the backlog. However, these extended hours have had a mixed reaction, with some suggesting there are other long-standing issues that both COVID-19 and Brexit have contributed to. These include unpredictable hours and lower pay compared to other sectors.
Feedback from participants at our Milk Forecasting Forum earlier this week, was that milk is still being collected from farms. However, they are encountering labour issues further down the supply chain. This includes issues with getting products to customers, or delivering spot sales.
It should be noted, however, milk production is currently in its seasonal trough, where challenges in collecting milk from farm would not be expected. A key concern is whether these issues will be resolved before early next year, when production begins to lift once again.
The NFU, along with other industry bodies, have produced a report outlining current workforce shortages in the industry and suggested measures to help alleviate the pressure. You can read the report here.
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