Freight News, Logistics, Business, Express

End of Covid rules and Brexit take their toll on couriers

[ May 3, 2022   //   ]

Over 15,000 transport and logistics companies failed in the first quarter of 2022 – 75% more than last year, says online delivery specialist, ParcelHero, quoting the latest figures from the Office for National Statistics (ONS).

It said that the end of Covid lockdowns has reduced the need for courier and home delivery services, while many online retailers are also struggling. In all, 15,005 freight transport businesses failed in the first quarter of 2022 (January to March), compared to 8,590 in the same period last year, it said.

Head of consumer research, David Jinks said: “The market is now readjusting as friends and families reunite and shoppers flock back to the High Street.”

Many of the courier start-ups that crested the wave of demand during the pandemic have now hit problems. and are the flip-side of the significant growth in the sector in 2020 and 2021, he said.

And he added: “Those freight transport companies whose main custom was with cross-Channel EU contracts have also been hit by new Brexit regulations, which kicked in at the beginning of 2021. Trade with the EU, especially for SME businesses and their logistics partners, has collapsed, mostly because of new red tape and complicated taxes and proof of origin regulations.”