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Rising diesel costs combined with problematic locations are stunting the profits of Scottish hauliers. Margeret McGregor, director of Aberdeen-based Skene Transport, says a company's geographic location can determine how hard it is hit by high fuel costs. She claims that for anyone who operates from Aberdeenshire, Inverness or "anywhere out of the way," fuel costs are much higher. "Even if you travel just a few miles you would find cheaper prices. The prices are extortionate. There's just no profit  here."

The same problem is faced by West of Scotland Haulage, which operates 18 vehicles and uses 18-25,000 litres of fuel a week. Managing director Jimmy Campbell confirms that prices are "more expensive than in other parts of the UK". He adds that the rising cost of fuel has knock-on effects. "Tyres, steelworks and other costs are affected. We're struggling to put fuel prices into contracts. Customers accept grudgingly."

Elsewhere in the transport sector, Forfar-based haulage group Sandy Kydd has managed to contain the spiralling fuel cost burden. Having just purchased a new Scania R620, owner Sandy Kydd tell us the firm has survived through specialised haulage work, including heavy plant and agricultural machinery transportation.

"We price on a daily basis according to the fuel costs. Our customers  realise the situation." However even with this strategy, Kydd adds that the firm is "coping" rather than thriving.