Two Scottish hauliers have fallen victim to high fuel costs and bad debt, forcing one to retire and another to slash operations by 75%.
Bellshill, Lanarkshire-based Strathclyde Transport is shutting up shop and auctioning off its entire 80-strong HGV fleet on 17 April after more than 30 years trading.
MD Jed Gaffney says bad debts totalling £700,000 were caused by clients collapsing, with further problems caused by the cold weather, meaning it could not carry out work efficiently.
"Fuel has been the killer for us. Hauliers need a rebate, and without this it's impossible to make a profit as not all customers are willing to accept a fuel duty escalator, and they know they can look elsewhere because so many companies are cutting rates," Gaffney adds.
Meanwhile, at the same auction at the Righead Industrial Estate in Bellshill, Protruck Auctions will aim to sell 19 of Annandale Transport's 25-strong fleet.
The Moffat, Dumfrieshire-based company says it has struggled to break even since the beginning of 2009. As a result 24 employees, mainly HGV drivers, will be made redundant over the next few weeks, leaving just eight staff.
The downsized company will now focus on generating turnover locally and avoid where possible, making journeys across the UK because it is not getting enough backloads to make the work financially viable.
David Hyslop, MD at Annandale Transport says: "We would not survive much longer at our current size because there are too many overheads and not enough profitable work. High fuel prices and no help makes us feel the government is actually trying to put us out of business."
