Sad tidings of unhappy Xmas
The UK is running out of time to find more truck drivers before isolated incidents at supermarkets and fastfood chains erupt into a deeper crisis that leaves businesses crippled by delivery delays and shortages.
Despite the mounting risks, there’s a standoff between the Government and business about a solution. Meanwhile, some stores are running low on bacon, milk and bread, and there have been warnings of shortages at Christmas.
On top of that, the logistical squeeze could push up costs for businesses, which means higher prices for customers. “I don’t want to scaremonger and there is no need to panic buy, but that said, availability has never really been so bad,” said Richard Walker, managing director of supermarket chain Iceland Foods. “It’s getting worse and you can see that when you go into the shops.”
The intense scramble to get products — from fresh food to car parts — is playing out around the world as a post-lockdown surge in global demand fuses with supply squeezes, worker shortages and port disruption.
But the drama in the UK has the added twist of Brexit, which is complicating hiring from the European Union. The industry strains and warnings of empty supermarkets, even if exaggerated, have added more fuel to the bitter debate over the divorce.
As hauliers and retailers adapt to address some of the headlinegrabbing shortages, they’re also pushing for government help. They want EU truck drivers added to a special visa programme to make it easier to fill the estimated 100,000 shortfall in workers, but the Government is refusing to budge, arguing that companies can lure staff with better wages. Businesses say hiring and training will take time, and there’s a pool of skilled drivers on the European continent that can be tapped much faster.
Companies are desperate for a fix as the Christmas clock is ticking. Stores need to start stockpiling for the peak period, but that’s proving impossible as they deploy limited delivery capacity just to keep food on shelves now.
A number of larger retailers are sending their own trucks direct to suppliers to pick up goods. Many are reducing or suspending penalties for supplier delays, and offering bonuses to attract new drivers.
Tesco, one of the UK’s biggest supermarket chains, said this week there has been some impact on business, but it remains limited. But media stories of missing products and pictures of empty supermarket shelves on social media are taking hold among the public. At worst, they could encourage the type of panic buying seen in the early days of the pandemic in 2020.
Given the concoction of global and domestic factors — from container shipping to immigration hassles — the supply crisis could be prolonged. With each passing week, delivery chains get more and more upended, increasing costs and denting profit margins.