From Driver Shortages to Festive Pressure: Can Collaboration Save the Food Industry Supply Chain Crisis?

Barely a week goes by without news of supply chain struggles, particularly during the festive season. From turkeys to mince pies, the HGV driver shortage continues to threaten the delivery of essential goods across the UK. While some claim the crisis has “stabilised,” ongoing research and industry surveys suggest otherwise. The underlying problems—Brexit-related border checks, workforce discontent, and operational costs—remain unresolved, explains Paul Empson, general manager, Bakers Basco.

The Road Haulage Association (RHA) paints a grim picture: this year, operating costs have risen by 5.95%, while pre-tax profit margins for many hauliers are a mere 1.58%. Meanwhile, nearly 500 haulage businesses collapsed last year alone, with more sure to follow. It’s clear that for smaller operators in particular, survival has become increasingly precarious. As we enter the busiest time of year for food logistics the pressure is mounting and the cracks are widening.

But beyond the financial strain, the industry faces another critical challenge: a chronic shortage of qualified HGV drivers. Despite ramped-up testing efforts pass rates remain low and nearly 55% of UK lorry drivers are nearing retirement age. The result? A dwindling talent pool and rising wage bills for those who can afford to compete for workers. Larger supermarket chains may have the resources to attract drivers with incentives and pay rises but this leaves smaller players and manufacturers struggling to keep up.

Rethinking the Supply Chain

At Bakers Basco, we’ve long argued for a more collaborative and sustainable approach to solving supply chain challenges. As the driver shortage persists some retailers and logistics providers are turning to consolidated deliveries - combining multiple shipments into fewer trips per week. This can significantly reduce road miles, emissions and costs. For example, instead of four deliveries per week a retailer might reduce this to two, creating efficiencies across the board. While this is an environmentally positive step it’s not a one-size-fits-all solution. Smaller shops, for example, may lack the storage capacity to hold larger quantities of stock for longer periods. This makes it crucial for stakeholders across the supply chain to communicate and coordinate effectively.

What’s at Stake?

The festive period adds another layer of complexity. Many food businesses are pre-emptively stockpiling to avoid potential delays and cold storage facilities are operating at higher capacity than ever before. While this ensures that long-life products are available, perishable goods such as fresh bread, fruit and vegetables are far more vulnerable to disruption.

Driver discontent is another looming threat. Recent surveys show that nearly half of professional drivers feel undervalued and underpaid with many considering leaving the industry altogether. A staggering 72% of drivers even indicated they may strike before the end of the year. Without meaningful improvements in working conditions, the industry risks losing even more of its essential workforce.

A Call for Collaboration

The government and logistics industry must work together to address these challenges head-on. The RHA has rightly called for reduced regulatory burdens and lower operating costs for hauliers. But as an industry, we also need to embrace innovation and sustainability. Consolidated deliveries, better route optimisation and investment in driver retention strategies are just some of the ways we can build a more resilient supply chain.

At the heart of all this is the need for collaboration. The food industry is an intricate ecosystem and every cog in the machine plays a vital role. Whether it’s ensuring timely deliveries, reducing environmental impact or keeping costs manageable, the solutions require a collective effort. By fostering collaboration across the supply chain we can not only navigate the current challenges but also establish long-term solutions that prevent similar disruptions in the future.