UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones
Backhouse Jones The Printworks Hey Road Barrow, Clitheroe BB7 9WD UK Tel: 02354 828 300
Email: enquiries@backhouses.co.uk Web: www.backhousejones.co.uk
1. Market Overview 1.1 Market Developments and Outlook The freight road transportation sector has suffered heavily due to the Iran–US war causing fuel prices to rapidly escalate. The effect of this is the need to adopt essential cost-saving exercises. Unfortunately, this often results in a failure to comply with the regu - latory regime as diligently as necessary. As a conse - quence, we are seeing more instances of non-compli - ance and regulatory breaches. In addition to this, the financial impact on companies is causing one of the core regulatory requirements – financial standing – to be missed, which can lead to revocation of operator licences if not managed well. The transport sector is heavily impacted by the econ - omy and often one of the first sectors to suffer when the economy flatlines, which it has been doing now for some considerable time. A flatlining economy leads to the closure/insolvency of a significant num - ber of operators, which results in a consolidation of the market and ultimately better prices for those that remain. Having contracts reviewed before signing can ensure items such as fuel escalators are added, resulting in the impact of events being less severe and therefore more businesses surviving. Ultimately, when the economy starts to grow, those that are left in the market can benefit significantly and for a pro - longed period. Due to the timescales involved in the regulatory regime, access to the market can be slow, which can provide significant windows of opportunity to those already in operation.
1.2 Investment and Infrastructure Activity There has not been any significant change in the last 12 months, nor has there been market consolidation to any great extent, although mergers and acquisitions have been occurring. Infrastructure expansion has not
been at an unusual level, in our opinion. 1.3 Modal Shift and Supply Chain Developments
In spite of the net zero agenda, we have not seen a significant modal shift. Instead, operators are look - ing at alternative fuels and there has been a slow but steady increase in the utilisation of electric vehicles, even including larger electric vehicles for 44-tonne loads. However, they are still only suitable for quite specific types of operation, as traditional haulage is not able to deal with the associated charging times and poor distances. 2. Regulatory Framework 2.1 Governing Legislation The principal laws governing road transportation in the UK jurisdiction are: • the Goods Vehicles (Licensing of Operators) Act 1995 and its relevant subordinate legislation, such as that for driver hours; • the Public Passenger Vehicles Act 1981; • the Transport Act 1985;
• the Transport Act 2000; and • the Bus Services Act 2025.
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