Tesco suppliers face further transport costs after driver shortage

Tesco
Tesco told suppliers that it will apply an additional 14% surcharge on primary distribution rates
// Tesco suppliers expected to face additional transport costs
// The grocer opted to impose price hikes following the ongoing driver shortage
// The new costs will affect Tesco’s primary distribution rates

Tesco expects suppliers to be affected by additional transport costs after it opted to impose price hikes following the ongoing driver shortage.

The new costs will affect Tesco’s primary distribution rates, a service run by the supermarket that brokers third-party hauliers to collect goods from supplier depots and transport them to its distribution centres.

Haulage companies have been increasing their rates over the last two months in order to cover the rising costs of driver wages.


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Tesco told suppliers that it will apply an additional 14 per cent surcharge on primary distribution rates.

The surcharge will run from August 1 until December 31, although Tesco later confirmed it intends to review the rate in three months.

Tesco said the price change “went through an independent process to agree rates that are competitive for the market”.

“We are doing everything we can to manage the current challenges facing the logistics industry and ensure our customers are able to get the products they need,” the grocer said.

Tesco has opted to increase its use of rail for importing food from Europe, and improved efficiencies through means such as reducing the time drivers spend at depots.

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5 COMMENTS

  1. DOCASTER 20-11 20-12. 180 Drivers sacked. What comes round goes round. The way Tesco treated these drivers was disgusting and to be honest it serves them right.What short memory’s they have .

  2. It’s all because of IR35 not covid or Brexit or pingdemic it’s IR35 . I have a class one and won’t drive now because I don’t want to go on PAYE . I’ve always worked part time on and off for Tesco Widnes but now it’s OFF permanently.

  3. Ir35 brexit and covid is a recipe for disaster. Put our pay up to 16 pound an hour and you’ll soon have drivers back. The industry has always been underpayed for the work we do.

  4. Ir35 brexit and covid is a recipe for disaster. Put our pay up to 16 pound an hour and you’ll soon have drivers back. The industry has always been underpaid yed for the work we do.

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