Why Companies Choose Road Over Rail and Changes to Supply Chain Logistics

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When I was a child in the 1970's the roads were relatively quiet compared to today's volume and motorways were still a novelty.
Every time we went on a long journey my Father would recall how long journeys used to take him by roads before motorways were invented.
It once took him 8 hours to travel from Preston to Wales.
Toy Train sets were all the rage and there was a vast array of models of cargo and commercial freight carriages.
It is only in recent years as traffic congestion has increased and at any time of day you frequent the motorways you notice the vast number of trucks on the road who all make our shopping passion possible.
Logistics is a huge industry and there must be constant calculations on how to reduce costs of transport.
At present even with high fuel costs it must still be more cost effective than alternatives.
The rail network used to carry over 90% of freight in the 1970s and this has now reduced to less than 10%.
A number of factors have contributed to this.
  • The development of motorways and lack of investment in rolling stock on the railways
  • Railway strikes that ground the network to a halt.
    Commuters are more forgiving than Companies
  • Low fuel costs for trucks prior to fuel rises several years ago.
  • Low capital investment costs in buying a fleet of trucks.
    Haulage companies responding to a need and offering a convenient door to door service.
  • Low repair costs of trucks that are robust and truck parts and maintenance are easily available particularly with the internet offering low cost parts.
  • The internet capabilities to plan routes and manage logistics to calculate fuel costs effectively.
  • Companies wanting more control of transport of their goods and supply chain improvements that no longer fitted seamlessly with the rail network constraints.
There is huge change that is required environmentally and financially for companies that transport goods commercially.
Haulage companies have huge pressures such as taco graphs and working hour's limitations.
Police checks on weight and other regulations.
The subsequent impact of insurance liabilities and increases in costs.
Employment costs of a team of drivers and the need to keep them and their fleet at maximum capacity is a constant strain.
Risk of tribunal and injury claims with lifting and handling have increased tenfold in the last 10 years.
Retailers and supply chain pressures to maintain "just in time" logistics demanded by consumers to keep prices down.
The increase in imports coming into ports with globalisation has provided a huge demand for haulage but the European market and companies charging low rates from eastern European countries who may not be as stringent in their standards of care for vehicles and their drivers has driven prices down.
Fuel is simply not going to be sustainable for haulage firms as our resources are being squeezed.
What will the next development in my lifetime be to transport goods effectively?
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