At Smart Directions, we’re keen on saving money for our customers. The 5 pence per litre cut in fuel duty is staying! Of course, running a business is never cheap, and the rising cost of living has really made an impact on the UK economy. But our solutions are not only chosen because they are the more efficient or most reliable (which they are), it’s because they are also the most cost effective.
You see, we don’t hold back in passing on savings wherever we can, so our customers are always getting the best possible deal.
So when, in the Spring budget, we heard that the Chancellor was keeping the 5 pence per litre cut in fuel duty, we thought “hooray!”. But this really only scratches the surface on what this economy needs to survive. Now, we can only talk about the logistics industry (we prefer to stay in our lane, both professionally and out on the roads) but we know that what we do helps you do what you do. So it’s mutually beneficial that we share what’s occurring.
Russia-Ukraine
It’s a conflict that has been rumbling on for years now, despite the lack of recent media coverage. Whilst it appears to have been replaced by fresh conflict and new anxieties, the situation is far from over. The situation between Russia and Ukraine has triggered a global increase in fuel prices, has impacted the goods supply chain in that region of the continent and altered trade routes. This fact alone brings us onto the next issue.
Houthi forces in the Red Sea
“The Suez Canal and the Red Sea channel approximately 30% of the world’s container traffic and facilitate the annual movement of over $1 trillion “, according to WeForum. Since November 2023, repeated attacks on vessels moving through the area has forced many to abandon the route and opt for a longer journey around the Cape of Good Hope, delayed ships for an additional 1-3 weeks. This increases the overall cost (more fuel, wages etc.), the time taken to receive the goods and reduces capacity i.e. longer journeys reduce the frequency which results in longer fulfilment times.
These two world events are enough to cripple the industry.
Let’s face it, both of these conflicts have similar impact. Increase cost, reduced efficiency and longer wait times. So what are we doing about it?
Well as we mentioned before, we’re keen to save our customers their hard earned cash. We’re also keen to provide alternative means of getting your goods from A to B as quickly as possible. But we’re not willing to compromise on a quality and reliable service. With that in mind, we are continuing to provide bespoke solutions and a reliable, 24/7 365 tracking system to give you updates regardless of time zone. If you would like to work with a logistics partner that cares, get in touch with us by completing an online form or calling us direct on 01442 507240