Stobart factors in fuel escalator

The Stobart Group has avoided the burden of soaring fuel prices by building an escalator into customer contracts.

A spokesman for the group says: "The risk and burden gets shared by the company and the client. [The fuel price escalator] is on the table when they tender for new business."

Stobart defends the decision by adding that it doesn't charge clients for a fixed-number dedicated fleet. Instead, they pay for the transport that is actually used. There are also options to consolidate loads from different companies in the same truck.

In the second quarter, the group traded in line with management expectations, and anticipates further profit as a result of its multimodal investments.

This follows the recent announcement that Stobart will run a second dedicated rail service with Tesco, running from Grangemouth to Inverness. Additionally, there is development work at the Port of Weston, Runcorn.

A Stobart spokesman says: "Anything to cut lorry miles, the company will do."