Aggregate Industries’ decision to reduce rates has sparked outrage among hauliers, who view the move as detrimental to their operations.
- AI attributes the rate decrease to challenging market conditions, citing a fall in fuel prices as a key factor.
- Despite AI’s justification, hauliers argue that other companies are increasing rates, suggesting AI’s actions are an anomaly.
- Some hauliers have ceased operations with AI, questioning the company’s motives and claiming there is sufficient work available.
- AI maintains that its decision is necessary for competitiveness and efficiency in a tough market environment.
Hauliers have expressed significant dissatisfaction with Aggregate Industries’ announcement to reduce haulage rates by 1.77%, attributing such measures to ‘extremely challenging’ trading conditions. This decision, communicated through a formal letter, has been met with strong opposition from hauliers who question the necessity and fairness of this reduction.
Aggregate Industries (AI) has linked the reduction to a weakening construction market and a decrease in fuel prices, explaining that standard tipper haulage rates would be cut by 0.52%. Additionally, AI plans to implement an extra 1.25% reduction to align with the current market environment. An AI spokesperson noted that they would focus on utilisation improvements to mitigate the impact of these changes.
Despite AI’s position, many hauliers believe that these cuts are unjustified, especially as other industry players like Breedon have reportedly increased their rates by 3.91%. A haulier, preferring anonymity, criticised AI’s approach as driven by greed, pointing out that operational demands are unsustainable under the new rates.
Roger Foster, a haulier from the west of England, voiced his decision to withdraw his trucks from AI projects, highlighting that contrary to AI’s assertions, there is ample work available. Foster’s remarks indicate a broader sentiment of disapproval among hauliers, who are questioning AI’s strategic direction during these market conditions.
In response to criticism, AI admitted to regular rate evaluations based on fluctuating fuel prices. However, AI insists that the necessity for further rate reductions stems from enduring competitive pressures and an unfavourable market climate. The company’s commitment to adjust rates in response to future market improvements aims to temper the current backlash.
The discontent surrounding Aggregate Industries’ rate cuts underscores a broader tension in the haulage sector regarding competitive practices and market dynamics.
