UK Truck Driver Shortage Shakes European Supply Chains

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] As the shortage of logistics truck drivers in the UK leads to a spread of shortages in daily necessities and fuel, concerns have been raised that this threatens the supply chain within Europe.

On the 4th (local time), CNBC reported, "The truck driver shortage issue is not only a problem in the UK but also in Europe," adding, "This could potentially cause supply chain problems."

Previously, the UK has been experiencing an extreme shortage of truck drivers. This issue is interpreted as a result of various structural problems acting in combination amid complicated customs procedures following Brexit.

The media introduced the local situation, stating, "Concerns about a fuel shortage due to the truck driver shortage in the UK have led to a 'panic buying' phenomenon."

CNBC cited a survey result, reporting, "Brexit, the COVID-19 pandemic, a sharp increase in retiring truck drivers, changes in work regulations, and an increase in retirees due to low wage controversies have been identified as causes of the sharp decline in truck drivers."

According to the data, the UK is short of about 100,000 large truck drivers compared to demand.

Concerns have arisen that this will also negatively affect the supply chain on the European continent. CNBC reported, "Currently, European countries are closely monitoring the situation in the UK."

A senior official from the German Federal Logistics Association said, "It is not yet a serious situation, but problems could arise at any time," adding, "Currently, there is a shortage of trained personnel in the logistics industry."

On the 4th (local time), vehicles are lined up in long queues in front of a gas station in the UK, waiting to refuel. [Image source=AP Yonhap News]

The market research firm Transport Intelligence released a report last August stating, "The truck driver shortage problem in Europe has worsened over the past few years," and analyzed, "There is a shortage of 400,000 drivers compared to the required workforce. Poland, the UK, and Germany have been hit the hardest."

John Manners-Bell, CEO of Transport Intelligence, said, "The logistics industry has been warning about the driver shortage issue and urging the government to prepare countermeasures for several years," adding, "Due to the 'perfect storm' of COVID-19, bureaucracy, infrastructure problems, and Brexit, long-term structural problems in the logistics industry have become apparent."

He added, "Inefficient truck driver licensing, aging workforce, decline in new hires, poor working conditions, and negative perceptions of the industry have caused the driver shortage."

Callum Pickering, an economist at German investment bank Berenberg, warned, "The fuel shortage in the UK is a warning signal," explaining, "It occurred due to delayed fuel supply caused by the truck driver shortage. This problem is faced not only by the UK but also by other European countries and the United States."