Road Freight Transport Sector Grows by 34 pc

Between December 2014 and November 2015, the UK road freight transport sector has grown significantly according to the latest figures released by Creditsafe. The report finds that the number of active limited companies in the industry has increased from 21,245 to 28,510, thats a staggering 34% in just 11 months.

Creditsafe has stated that the majority of the growth is down to the fact that the fuel prices have been on the decline as well as UK reliance on home deliveries. The data collected also reveals that the company failures have remained below one percent of the total number of businesses over the past year.

Rachel Mainwaring, operations director of Creditsafe, had this to say about the statistics “It’s encouraging to see such positive growth and business survival in the UK transport sector… Firms are finding the environment more comfortable as fuel prices remain low and the prevalence of online shopping drives more profit and business.”

However the analysis still showed some cracks in parts of the sector, despite the growth and healthy credit rating, there is still a ‘small proportion of bad debt in the industry’. Two percent have outstanding or satisfied CCJs averaging £3,285 which is a total of £2.15 million across the road freight transport.

Rachel Mainwaring continued: “Though transport companies have a low number of CCJs against them, they still exist, and almost 500 are in our highest risk banding, so it’s still important to check out potential suppliers and partners with a detailed credit report.”