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TheCountOfNowhere

Another 53 Jobs To Go At Corby Haulage Firm

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http://www.northantstelegraph.co.uk/news/top-stories/corby-haulage-company-closes-with-the-loss-of-jobs-1-5191921

"Corby haulage company closes with the loss of jobs"

"A haulage company which has operations in Corby and St Albans has gone into administration with the loss of a total of 53 jobs.

Bill Chippington Haulage, of Geddington Road, in the town, ceased trading on Friday and Peter Wastell and Michael Young of FRP Advisory have been appointed administrators."

Bill Chippington....Bill, "Chip it in the bin" more like.

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clear sign of recovery.

It would be interesting to know how many 'zombie' companies there are out there, hanging on by the strength of the overdraft/debt trying to support them......when one fails to pay or late in paying their bills or another fails to pay what they are owed it affects the whole supply chain, like a domino effect. ;)

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Road haulage is about as good a barometer of the state of the economy as you can get, if people aren't buying it then trucks aren't moving it. Rates are static at best while costs rise relentlessly. My own insurer phoned today with my renewal quote, the motor insurance has jumped from £3,200 to £3,700 despite having a year's no-claims bonus and two endorsements which are now over three years old this year.

There's only one place that £500 can come from, and that's the wage i pay myself. As a consequence, I'll have £500 less to spend on consumer products next year, which will mean a further reduction in transport movements and..... well, you get the picture.

Haulage companies are going bust left,right and centre at the moment. The only reason you don't hear more about them is because probably the majority of firms employ four, six, maybe a dozen drivers and so bankruptcies aren't as newsworthy. I would bet that at least 53 truck drivers lose their job every single day of the week and probably many times more than that.

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bdi.gif

The Baltic Dry Index, (no not dry chick in a curry) is a good indicator stuff being shipped around the world.

DryShips (DRYS) also confirms.

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Haulage companies are going bust left,right and centre at the moment.

Isn't there always some churn, with the casualties broadly balanced by new entrants to the market?

And how much of the market is these tiny companies? For any client with regular work (meaning most of the haulage market), economies of scale are surely going to favour the likes of Stobart and Wincanton over the one-man-bands!

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The Baltic Dry Index, (no not dry chick in a curry) is a good indicator stuff being shipped around the world.

There's a good example of a near-total zombie industry. The bottom has fallen out of the bulk shipping industry. Many of the companies are heavily debt laden and are in breach of their covenants, but as the 2nd hand value of freighters is essentially zero, and the scrap value isn't much higher, the banks simply are letting things run.

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Isn't there always some churn, with the casualties broadly balanced by new entrants to the market?

And how much of the market is these tiny companies? For any client with regular work (meaning most of the haulage market), economies of scale are surely going to favour the likes of Stobart and Wincanton over the one-man-bands!

Harry will know about the actual haulage sector much better but as far as my experience goes with lorry fleets there's little economies of scale to be found. At the end of the day the savings to be had in buying diesel and tyres in bulk aren't going to be massive. All the pallet networks are underpinned by small hauliers and are the backbone of a lot of goods distribution. Stobart and Wincanton lorries are actually a fairly rare sight delivering in our yard

In actual fact the 'economies of scale' argument is frequently mentioned as an explanation of how megacorp X or Y is destroying small businesses. In a lot of cases the larger you get these days the more costs you have and the economies of scale aren't there so much. Increasingly better buying terms can't be obtained to a sufficient degree to cover the attendant overheads of being large ie head office/warehouse/distribution/area managers etc.

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Road haulage is about as good a barometer of the state of the economy as you can get, if people aren't buying it then trucks aren't moving it. Rates are static at best while costs rise relentlessly. My own insurer phoned today with my renewal quote, the motor insurance has jumped from £3,200 to £3,700 despite having a year's no-claims bonus and two endorsements which are now over three years old this year.

There's only one place that £500 can come from, and that's the wage i pay myself. As a consequence, I'll have £500 less to spend on consumer products next year, which will mean a further reduction in transport movements and..... well, you get the picture.

Haulage companies are going bust left,right and centre at the moment. The only reason you don't hear more about them is because probably the majority of firms employ four, six, maybe a dozen drivers and so bankruptcies aren't as newsworthy. I would bet that at least 53 truck drivers lose their job every single day of the week and probably many times more than that.

You won't be pleased to hear that oil prices are on the march again. $100 a barrel mentioned yesterday. Currently $97.89. Brent crude is of course higher.

Then again I was out on my bike on Sunday on the A616 one of the routes between Huddersfield and South Yorkshire but not the main or only route and it was just a continuous stream of traffic. I'm sure busier than a week day.

So I tend to laugh when people call an end to "austerity."

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Look out for administrators going bust or having layoffs - that would be a good time to tell us that the depression/recession is over.

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There's a good example of a near-total zombie industry. The bottom has fallen out of the bulk shipping industry. Many of the companies are heavily debt laden and are in breach of their covenants, but as the 2nd hand value of freighters is essentially zero, and the scrap value isn't much higher, the banks simply are letting things run.

Very true.Iv just booked a 40 foot HQ container on the Ningbo (Shanghai) to Felixstowe and the price is 57% down on the last one I booked in March.$2300 this time and iv seen odd ones on the Rotterdam run going in at $1200 for a 40HQ,thats the cheapest iv ever seen a 40 on western routes..I always order now as it its always the cheapest time of the year to run before the big retailers start bringing in xmas stock from August onwards.

Maersk have just added the big container ship in the world to the route http://www.theglobeandmail.com/report-on-business/international-business/maersk-unveils-worlds-biggest-container-ship-in-weak-freight-market/article12567032/

The industry will try to push through price increases starting next month so it will be interesting to see if they hold for more than a few weeks.The new Maersk ships need to be filled or they will lose massive amounts of money so the pressure on rates should be relentless.

As for this country.Costs just keep going up and up.Its almost as expensive for me now to move a container from port to warehouse here as it is to ship it from the factory in China to the UK.

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When it becomes less viable to move stuff, more costly to import stuff, our choices will be diminished unless we do it ourselves. ;)

Yes and that's just whats happening.Just down the road a company an old school friend runs is starting to manufacture washing machines again,

and plans for fridge freezers,

http://www.thisismoney.co.uk/money/smallbusiness/article-2291519/Ebacs-John-Elliot-make-washing-machines-UK.html

I import products that I could probably make/have made in the UK for the same price now and have started to look into it.Im starting to see price increases in China for the first time in 3 years.Im also seeing factories I use contact me to re-order quicker etc and iv never seen that before.Its the first time iv seen them not running at full capacity.Many used to turn customers away.

China could be in for a very hard landing unless Europe picks up soon.

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Guest eight

Yes and that's just whats happening.Just down the road a company an old school friend runs is starting to manufacture washing machines again,

and plans for fridge freezers,

http://www.thisismoney.co.uk/money/smallbusiness/article-2291519/Ebacs-John-Elliot-make-washing-machines-UK.html

I import products that I could probably make/have made in the UK for the same price now and have started to look into it.Im starting to see price increases in China for the first time in 3 years.Im also seeing factories I use contact me to re-order quicker etc and iv never seen that before.Its the first time iv seen them not running at full capacity.Many used to turn customers away.

China could be in for a very hard landing unless Europe picks up soon.

John Elliot is a sound bloke. The thing is, I think a lot of the work we sent overseas we kind of talked ourselves out of - there were no real reasons other than ideological ones, and perhaps herd mentality, why the work couldn't remain here. Electrolux at Spennymoor were making washing machines and fridges until about fifteen years ago, is that really going to be the entire timescale of China's rise and fall? Could be.

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Harry will know about the actual haulage sector much better but as far as my experience goes with lorry fleets there's little economies of scale to be found. At the end of the day the savings to be had in buying diesel and tyres in bulk aren't going to be massive. All the pallet networks are underpinned by small hauliers and are the backbone of a lot of goods distribution. Stobart and Wincanton lorries are actually a fairly rare sight delivering in our yard

I was thinking in terms of scale of the jobs: If you're a one-man-band you're going to have to drive a lot more empty miles than someone who can almost-always organise each lorry to pick up another load near to where the last one was delivered. And rotating your vehicles between working and maintenance on an efficient schedule. And maintaining optimised networks of resources such as depots.

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John Elliot is a sound bloke. The thing is, I think a lot of the work we sent overseas we kind of talked ourselves out of - there were no real reasons other than ideological ones, and perhaps herd mentality, why the work couldn't remain here. Electrolux at Spennymoor were making washing machines and fridges until about fifteen years ago, is that really going to be the entire timescale of China's rise and fall? Could be.

It all depends how many you can get into a container and their worth.My Chinese account manager in Shanghai always sums it up well when she says "you not pay to ship fresh air".A washing machine your shipping a lot of fresh air,probably 60%+.Theres a lot of room inside those cases.

Far better to ship in the small components and simply make the drums and the case in the UK.It will be interesting to see if that's what EBAC is doing.Shipping in all the small components and simply making the cases and drums on site and assembly.

Many items due to all the extra costs are moving into the zone where its worth making in the UK.The problem we have is our industry has been so hollowed out but there are options.

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Guest eight

It all depends how many you can get into a container and their worth.My Chinese account manager in Shanghai always sums it up well when she says "you not pay to ship fresh air".A washing machine your shipping a lot of fresh air,probably 60%+.Theres a lot of room inside those cases.

Far better to ship in the small components and simply make the drums and the case in the UK.It will be interesting to see if that's what EBAC is doing.Shipping in all the small components and simply making the cases and drums on site and assembly.

Many items due to all the extra costs are moving into the zone where its worth making in the UK.The problem we have is our industry has been so hollowed out but there are options.

You should think of something small and highly valuable to ship inside washing machine drums. Everyone's a winner.

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Yes and that's just whats happening.Just down the road a company an old school friend runs is starting to manufacture washing machines again,

and plans for fridge freezers,

http://www.thisismoney.co.uk/money/smallbusiness/article-2291519/Ebacs-John-Elliot-make-washing-machines-UK.html

I import products that I could probably make/have made in the UK for the same price now and have started to look into it.Im starting to see price increases in China for the first time in 3 years.Im also seeing factories I use contact me to re-order quicker etc and iv never seen that before.Its the first time iv seen them not running at full capacity.Many used to turn customers away.

China could be in for a very hard landing unless Europe picks up soon.

Well done to him, I hope he is successful........China will have to start selling more stuff to themselves like we should do....they must still have more room for growth than we do. ;)

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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