Cost of spoiled loads due to the migrant crisis to hit £1bn per annum
RHA Chief Executive Richard Burnett has highlighted the dramatic cost of spoiled loads due to the migrant crisis in Calais, estimated to be running at approximately 1 billion per annum.
Giving evidence to the Home Affairs Select Committee hearing on the migrant situation at Calais, Richard Burnett explained that illegal stowaways have been known to contaminate loads with human waste and in other cases had tampered with the loads as a means of making room in which to hide. As a result, companies were having to destroy complete shipments of goods.
Commenting, Mr Burnett said: “The owners of goods have to take the drastic action of scrapping loads as they cannot take the risk that they have been contaminated or damaged. With something in the order of 10,000 loads moving every day across the Channel, even if only 1% are tampered with or soiled, at a loss rate of about £30,000 per trailer, this equates to about £3 Million a day equalling £1 Billion a year. That’s a massive and unacceptable cost to our economy and many hauliers are having to absorb large parts of that cost. On top of that are the other enormous costs of vehicles unable to work as a result of being caught for days on end in Kent’s Operation stack and penalty payments for lack of delivery. In addition, the stress caused to drivers is incalculable.”