Transport costs set to soar with WTD

Logistics costs will rise once the Working Time Directive (WTD) covering 'mobile workers' comes into force next march, according to a new survey of manufacturers and retailers.

The survey, carried out by logistics specialist Scala Consulting, showed that the WTD would drive up transport and distribution costs. At the same time the outsourcing of distribution is expected to increase.

The results showed 91% of respondents expected hourly driver wage costs to rise, with 88% expecting a need for more drivers. Around two-thirds of companies predicted the number of vehicles to increase. However, inventory and warehousing costs were not expected to increase further.

Another trend identified that longer supply chains, more centralised warehousing and smaller orders were reducing the environmental gains achieved through better operational efficiencies, improved fuel economy, packaging material reduction and the increased use of recyclable packaging systems.

Suppliers also reported that they had increasingly to understand their real supply chain costs in the light of changes to retailers' supply chain strategies.

"Companies that run their own transport or use third-party logistics providers really must start now to address the issues that will result from the introduction of the WTD," says Scala Consulting md John Perry.