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Transport and storage sectors hardest hit by Covid and Brexit

The latest Government Business Insight report, which reveals that 9.6% of companies in the transport and storage industry have closed, is proof that transport and supply chain companies are suffering from the double whammy of Covid and Brexit, according to ParcelHero.

ParcelHero’s head of consumer research, David Jinks, who is a member of the Chartered Institute of Logistics & Transport, says the logistics and supply chain sector is a trusted barometer of the economy and that these results come as a shock.

“The report – Business insights and impact on the UK economy – reveals that, between 17-30 May, 9.6% of transportation and storage category companies reported they had now closed permanently; 15% were still temporarily shuttered and just 75.4% had resumed trading,” he said. “These trading status figures are grim reading and highlight the double whammy of the pandemic and Brexit on the transport and supply chain sector.”

He said it was surprising that even sectors such as accommodation and food service, as well as arts, entertainment and recreation, had appeared to fare better. “Both the arts and the accommodation and food sectors actually reported worse financial performances than transport and storage firms, but significantly fewer organisations actually failed,” he said.

He said the root of the problem is that freight transport companies are particularly exposed to the impact of Brexit, providing extra complexity on top of issues caused by the pandemic.

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