€720,000 nightmare for haulage company
THE SOARING cost of fuel has resulted in one Wexford based haulage company having to cope with an additional increase in costs of almost three-quarters of a million.
With ninety trucks operating in the UK and Ireland, Roche Logistics Group goes through 150,000 litres of fuel a month and in the last year alone their costs have risen by €720,000.
According to Conor Roche, Director of the Rosslare Harbour based company, the company recently made the decision to implement a diesel surcharge, based on the AA guide, on their rates four months ago due to the rising costs of fuel.
'You get customers that won't accept the surcharge and will leave. They will leave hoping to go to some other company and sometimes you are too afraid to let their custom go that you take them on board but the cost will catch up with you eventually and you will have to implement the surcharge,' explained Conor.
Although Conor admits there is a danger of losing customers as a result of the surcharge, companies now who have not implemented the surcharge will be 'in trouble'.
'Hopefully all hauliers will cop on and will put on a surcharge. You have to get costs back somewhere,' he added.
Diesel has gone up 43 per cent since December 2009, according to Conor, who says it is a cost imperative to the operation of their company but one that they can't do anything about.
'In our business it is a massive cost. Our main costs now are diesel and the driver, whereas before the driver used to be the biggest cost. It is a cost you can't do anything about, you have to put diesel in the truck,' he said.
Roche Logistics Group, like all hauliers, is now hoping the dollar will become weaker, which may see the price of diesel go down.
'It is an issue that needs to be sorted out,' added Conor.