“A combination of factors are driving (heh) the United Kingdom’s fuel — or petrol, as it’s called — shortage.
There were disruptions in fuel delivery, but Brits’ desperation to get gas appears to be causing the current crisis. People are rushing to fill up their tanks because they are worried there will be a big shortage, and that is straining the available supply. Florian Lücker, a senior lecturer in supply chain management at the Bayes Business School at City, University of London, compared it to the US’s great toilet paper stockpiling at the outset of the Covid-19 pandemic.
“We have potential delays in supplies of fuel, among other things,” said Joanna Clifton-Sprigg, an assistant professor in economics at the University of Bath. “But it wouldn’t have been so bad if we all didn’t suddenly decide to go to a petrol station and fill the tanks to the full in every car we own.”
Why people were panic-buying gas in the first place is a bit more complicated. It’s not because of a national lack of fuel or gas. The UK has enough supply. It’s because there is a shortage of truck drivers able to deliver it.
This dearth of drivers isn’t exclusively a UK problem, it’s a global one, as the commercial trucking industry is struggling to recruit new workers for what is an extremely grueling job — long hours on the road, poor infrastructure to sleep or go to the bathroom.
“Being a truck driver is a really hard job,” said Dmitry Grozoubinski, director of the consultancy ExplainTrade. “It’s not hugely social. It’s not particularly high status. And in a lot of cases, it wasn’t supremely well paid.” The industry skews old, and many drivers are retiring, and though the UK is urging drivers with experience to come back, the often poor conditions and benefits are keeping people away. Add to that Covid-19 pandemic disruptions, which in the UK were particularly acute because the country suspended the testing process for truck drivers during lockdown.
The UK trucking industry is also dealing with something that exists nowhere else: Brexit. The United Kingdom’s exit from the European Union has exacerbated the crisis. Or more specifically, the version of Brexit pursued by Prime Minister Boris Johnson’s government has.
There are some signs that the immediate fuel crisis may be waning soon, and the UK government has put soldiers on standby to haul fuel, as needed. Johnson’s government has proposed a plan to bring in 5,000 foreign truck drivers through short-term temporary visas in an attempt to make up the shortfall. But that might not be enough to fill labor gaps the UK is experiencing, and Brexit — and the ideas behind Brexit — may make it harder to find long-term fixes.”
“Pay for truck drivers isn’t always commensurate with the demanding nature of the work. The job became less appealing to Brits, and so like a lot of industries, companies sought to fill their ranks with workers from elsewhere. Wealthier countries in the EU have often relied on workers from poorer EU member states, and those workers could drive a truck in the UK or Germany and take home way more money than they’d be able to earn in, say, Poland.”
“the Brexit deal negotiated with the EU created more friction between the two partners. That, too, was a deliberate choice, and has added a layer of red tape to the trading relationship. It may make it less attractive to be a trucker in the UK than in the EU and more difficult for EU truckers to make up some of the shortfall the UK is experiencing. “What Brexit has meant is that the UK no longer enjoys the way that the EU pooled resources and moved stuff around in order to take the edge off those problems,” Grozoubinski said.”
“It has also been difficult to untangle the current rules from the anti-immigration sentiment that accompanied Brexit. People may not want to come to work in the UK where there is a sense they aren’t as welcome or won’t be able to settle in the UK. That unease may have prompted some truck drivers to leave.
But, according to Elizabeth de Jong, the policy director at Logistics UK, the pandemic just made everything worse, as people may have just gone back to their home countries during the lockdowns. “The thing that has changed because of the EU exit is that we would normally be able to just bring them back, and you can’t just bring them back or recruit more from the EU,” de Jong said. “We haven’t got that option anymore.””
“The United Kingdom and the European Union have been trying for the last 11 months to negotiate an agreement that will define their future partnership after the UK formally left the bloc in January. But both sides remain stuck on major points — fishing rights, guaranteeing a “level playing field” on government subsidies and regulations, and how to enforce any deal — with very, very little time before the year-end deadline.
Getting a deal is in the interests of both sides, but reaching, ratifying, and implementing any deal in three weeks is going to be a challenge — and might not be feasible at this late stage.
But without any framework, the EU and the UK could face major disruptions in January on everything from trade to transport. It will be painful for both sides, but the UK, now all alone, is expected to feel that fallout more acutely, which will pile on to economic hurt brought on by the pandemic.”