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Highlights
- Retailers fear panic buying during the festival season if supply chain crisis not addressed immediately.
- Soaring prices of European natural gas and a post-Brexit shortage of truck drivers have left UK struggling with rising energy prices and a potential supply chain and food crisis.
British farmers and retailers have warned the Boris Johnson government that the supply chain and food shortage due to shortage of lorry drivers will lead to panic buying for Christmas if immediate actions are not taken.
Minette Batters, the leader of the National Farmers’ Union, has appealed to Prime Minister Boris Johnson for introducing a special Covid-19 recovery visa, which could allow businesses to hire more workers from outside UK.
Soaring prices of European natural gas and a post-Brexit shortage of truck drivers have left UK struggling with rising energy prices and a potential supply chain and food crisis.
Businesses in a number of sectors have been struggling to recruit workers even after offering hike in salaries. There is a shortfall of around 1, 00,000 drivers in the UK after 25,000 drivers returned to Europe before the pandemic and Brexit halted the qualification criteria for new workers. This has made it harder for retailers to get products into stores and onto shelves.
Supermarket giant Tesco revealed in a meeting organized by the Cabinet office that it is struggling with the shortage of around 800 lorry drivers. Leading oil & Gas company BP had to close some of its gas stations as pumps ran dry in some places.
Transportation and logistics companies warned the government that the situation can’t be resolved in few days and changes in testing or visas would probably be too late to ease the pre-Christmas shortages as retailers stockpile months ahead.
The Road Haulage Association (RHA) asked the government to allow short-term visas for overseas drivers to easily enter UK and fill the shortage, while British drivers are being trained for the future.
Also read: What’s chipping away at global supply chain?
What is the Government doing?
The Boris Johnson government is easing the process of qualifying for an HGV license, by withdrawing some parts from the HGV practical driving test. Although, the government has so far resisted appeals from various businesses and organisations to ease immigration restrictions and allow them to hire workers from overseas to address the current challenges.
Johnson has also asked Brazilian President Jair Bolsonaro for an emergency contract to supply short food products in the UK, through the UK embassy disputed Bolsonaro’s account.
Spike in wholesale gas prices forced the company to shut its Billingham plant, that delivers 60% of UK CO2and a plant in Cheshire. However, to get Billingham plant restarted again, the government has also been forced to pay 10 million pounds to US firm CF Industries on Teesside for three weeks.
Also read: Why CO2 supply is so crucial for UK
Will there be panic buying for Christmas?
Government ministers and retailers are urging shoppers not to panic buy ahead of this Christmas, while they have concerns about stockpile which may further affect supply chains and the sudden increase in demand will significantly increase the prices of the goods.
According to a survey by the Office for National Statistics (ONS), one out of six Brits won’t be able to purchase essential commodities at some point and a quarter of Brits will find it difficult to purchase other non-essential food items in near future.
The sale of Christmas trees were up by 233% at the end of the last week as compared to last year and the decorations were up by 156%.
This Christmas seems to be more online and people may get more anxious about money due to rising unemployment and uncertainty, so value is going to be much more important.
Also read: Wetherspoons joins the list of firms hit by supply chain crisis in UK
