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Highlights
- The UK government is set to ease visa rules to allow foreign HGV drivers to make deliveries more frequently in the country.
- The proposed temporary scheme plans to allow unlimited trips to the UK for up to two weeks by EU lorry drivers, compared the present rules of a maximum of 2 trips per week.
- BP PLC, J Sainsbury PLC, Clipper Logistics PLC have suffered a lot due to the HGV driver shortage in the country.
The UK government is planning to ease rules for lorry drivers by allowing foreign heavy goods vehicle (HGV) drivers to make deliveries more frequently in the country for two weeks before they are back home.
The move aims to facilitate smooth deliveries amidst an ongoing lorry driver supply crisis that has surfaced in recent months. According to industry body Road Haulage Association, the country has an estimated shortfall of about 100,000 lorry drivers.
Currently, European national drivers are allowed to make two trips per week to the UK. However, the UK government aims to ease visa rules by allowing foreign drivers unlimited trips for up to two weeks before returning to Europe.
The government proposed rule relaxation will come into effect by the holiday period close to the year-end. The rule change will require a one-week prior consultation process and is expected to stay in place for six months.
The UK transport secretary, Grant Shapps, said the temporary amendment in rules would help in efficient deliveries by foreign drivers, especially during the higher demand levels experienced during the holiday period.
Mr. Shapps added that a longer-term solution would be for the UK to move towards a high skilled and high wage economy.
In view of this, let us take a look at 3 FTSE stocks across different sectors that stands to be benefited by this development:
- BP PLC (LON: BP)
FTSE 100 index listed firm BP is an oil and gas major and the largest forecourt operator in the UK. The company had sparked panic buying at petrol stations last month when it had said certain grades of fuel were running empty.
The stock rose over 1 per cent in today’s morning trading session after Brent crude rose over the US$ 85 per barrel mark, for the first time since October 2018.
(Image source: EODHD/Others)
BP’s shares were trading at GBX 363.20, up by 1.54 per cent as of 15 October 2021 at 11:05 AM BST. Meanwhile, the FTSE 100 index was trading at 7,223.22, up by 0.22 per cent.
The company has a market cap of £71,511.45 million and a one-year return of 70.70 per cent as of 15 October.
- J Sainsbury PLC (LON: SBRY)
Sainsbury is the second largest UK based supermarket chain. It is also part of the FTSE 100 index.
The company plans to hire 22,000 temporary staffers for the holiday period. It also provided a facility to offer an additional £500 in wages for its new and existing drivers in order to work shifts during this period.
(Image source: EODHD/Others)
Sainsbury’s shares were trading at GBX 296.90, up by 0.41 per cent as of 15 October 2021 at 11:18 AM BST. Meanwhile, the retail sectoral index was trading at 2,831.69, up by 0.30 per cent.
The company has a market cap of £6,896.92 million and a one-year return of 48.28 per cent as of 15 October.
- Clipper Logistics PLC (LON: CLG)
FTSE All-Share index listed firm Clipper Logistics is a retail freight and logistics company in the UK.
The company’s FY 2021 revenue rose by 39.1 per cent to £696.2 million, from £500.7 million in FY 2020. Also, its FY 2021 underlying earnings before interest and tax (EBIT) was up by 52.4 per cent to £31.4 million, compared to £20.6 million in FY 2020.
(Image source: EODHD/Others)
Clipper’s shares were trading at GBX 693.00, down by 0.86 per cent as of 15 October 2021 at 11:25 AM BST. The FTSE All-Share index was trading at 4,120.73, up by 0.31 per cent.
The company has a market cap of £ 715.11 million and a one-year return of 34.40 per cent as of 15 October.
