Retailers looking at happy Christmas

Domestic road freight operators have seen an early build up to the Christmas trading this year according to Freight Transport Association's latest Quarterly Transport Activity Survey.

In the final quarter of the year, road freight operators anticipate even stronger levels of activity growth, with levels even expected to outperform last Christmas, which is positive news for the fresh produce industry.

It is operators in the retail and wholesale sector that anticipate the strongest activity with those in the parcels and distribution sector also planning for widespread growth.

Both the market for commercial vehicles and demand for third party services are expected to grow in the final quarter of 2003 as operators supplement their core vehicles fleet with additional vehicles to meet the Christmas demand peak.

Simon Chapman, FTA's Chief Economist said: “These results are great news for the UK economy. Christmas 2002 was generally a good one for retailers. Christmas 2003 doesn't look like it will disappoint.

“However, even the run up to Christmas has failed to help international hauliers to regain any of their market share lost over the last few years. Despite the recent depreciation of Sterling against the Euro, UK hauliers remain unable to compete with continental competitors and their lower overall cost base.”

The FTA survey reveals a lacklustre short-term outlook for rail freight. Operators have reported a fall in their use of bulk/conventional services for the first time since the first quarter of 2002. Intermodal services are expected to see the smallest increase in activity levels since July 2002.

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