More diesel tax rises soon to come as the industry asks for support

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UK hauliers are facing a red diesel tax rise and need ‘promised support’ says the Cold Chain Federation.

The Cold Chain Federation is urging hauliers to finalise their preparations for a major cost increase when the UK Government ends the red diesel rebate for Transport Refrigeration Units (TRUs).

The federation represents companies which store and distribute chilled and frozen food, pharmaceuticals and other products. It says these companies are now facing imminent increases in fuel costs after the government backtracked on its promise to support the transition away from using diesel for refrigeration on transport vehicles.

The Cold Chain Federation has therefore been advising its members to plan ahead of 1st April how best to mitigate the rise in fuel costs.

Tom Southall, Policy Director at the Cold Chain Federation said: “We estimate this change will add up to £100m in additional cost to the supply chain. We are advising temperature-controlled distribution operators to ensure you have plans to use up stocks of bunkered red diesel by the 31st March, contact your customers to make them aware of the increased cost and check contractual arrangements with customers to ascertain ability to raise cost of service in line with fuel inflation.”

Articulated lift truck-based intralogistics solutions company Narrow Aisle said that on-going concerns over the impact of LPG engine emissions on the environment and employee’s health, alongside fears over fuel price hikes are among reasons warehouse operators are increasingly more likely to purchase forklifts featuring lithium-ion technology.

John Maguire, Narrow Aisle Ltd’s Managing Director said: “Over last three years or so there has been a major change in attitudes to forklift power sources. Lithium-ion battery technology has come of age at precisely the right time to meet the market’s environmental, productivity and safety demands.”

“Time and again, companies that we are working with explain that they are evaluating the environmental impact of their logistics operations and, as a result, are looking to replace conventional diesel and LPG fleets with cleaner, more environmentally-conscious, and fuel-efficient alternatives.”

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