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Supply chain crisis slows UK business output for sixth consecutive month

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  • Supply chain crisis slows UK business output for sixth month in a row
A report by accountancy firm BDO shows that United Kingdom (UK) business output has slowed for a sixth consecutive month amid the supply chain crisis.

UK economic growth slowed from 5.5 percent to 1.3 percent in the third quarter. Ongoing supply problems have prevented UK businesses from taking full advantage of the easing of Covid restrictions. 

Surging transportation and supply chain costs have resulted in a cost environment not seen for at least two decades. Worldwide supply chain issues such as the blocking of the Suez Canal by a ship in the summer and the closure of a large Chinese port because of Covid have added to UK supply bottlenecks. 

UK energy price rises, a tight labour market and the shortage of HGV drivers is also having a large impact on costs incurred by UK companies. Firms in almost every region of the UK recorded unprecedented increases in their operating expenses in October.

A number of the world's largest companies have warned the price of household goods will have to rise to cover high freight costs. 

The Chief Executive of Associated British Ports, has warned that supply chain disruption is likely to persist until 2023.

Congested container ports around the world, including Felixstowe will take some time to return to normal. 

Given the worldwide supply chain issues, George Weston, the Chief Executive of Associated British Foods has called for the UK government to delay post-Brexit port checks on goods coming from the EU which are due to commence on 1 January 2022.

If you are looking to reduce freight costs for your business please contact us at Tudor International Freight, on 0333 1234 747 or email sales@tudorfreight.com.

About Us - Tudor International Freight 

Established in Horsforth, Leeds, back in 1991, we are a logistics company who are experts in road, air and sea freight. We transport goods to most major cities, towns and suburbs across all 6 continents. We go over and above to ensure that our client’s products, goods and cargo are transported around the world safely and successfully. We are a family business, who are still based in Horsforth, Leeds, West Yorkshire. 

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    • Tudor International Freight
      Low Hall Business Park
      Low Hall Road
      Horsforth

      Leeds
      LS18 4EF
      UK

      T: +44 (0) 333 1234 747
      E: sales@tudorfreight.com
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