Midlands hauliers in fuel prices warning

Haulage companies across the West Midlands today warned that they could be forced out of business by rising fuel prices as they try to fight back from the recession.

They say they are seeing their margins squeezed to the limit - with some firms having to sell lorries to make ends meet. Latest figures from the AA show diesel prices soaring - to an average of 121.1p a litre this month.

This is a 2.9 per cent increase from 117.7p a litre in September.

Dudley-based haulier Maurice Hudson says some firms have already been forced out off business with others having to downsize and sell vehicles.

"Fuel prices are killing the industry and unless something is done to reduce the prices I can see more going out of business," he said.

"I think the crippling prices coupled with more foreign lorries on the roads is really hitting firms. I know of a few businesses that have had to sell lorries."

Mr Hudson, who owns family firm Hudson's of Dudley Ltd, in Canal Street, Brierley Hill, says he is spending £15,000 a month on diesel.

The 78-year-old says the firm also has to spend 35p a litre on a substance called AdBlue, which helps reduce emissions. He said: "Extra costs like this which is government legislation also adds up and forces us to find more money all the time."

Ron Aiken, who founded Mainline Haulage in Neachells Lane, Willenhall, 35 years ago, said the cost of fuel had forced firms into major efficiency measures.

He said: "About 20 years ago a gallon of diesel cost what a litre does now. It is a huge cost and we know it isn't going to get any less - that's why productivity, efficiency and having systems in place to deal with it is so important.

"You have to be selective in what you do, we work with local people instead of trying to service customers all over the place."

By Andrew Turton