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Operators have been warned to turn down business that is not profitable if they want to stay afloat. This stark warning comes from the International Road Transport Union (IRU) as it attempts to persuade governments across Europe to recognise how important road transport is to the economy.

Jens Hügel, head of sustainable development at the IRU, insists that while governments must do more to help road haulage, he is adamant the industry  must do all it can to help itself.

"We are encouraging our members to only transport goods if they will make a profit and can pass on the costs to the customer," Hügel says.

He adds that this approach would help stabilise prices because it would reduce the market capacity and customers would begin to realise that they cannot cut costs by forcing hauliers to operate at a loss.

Jack Semple, director of policy at the Road Haulage Association, says he supports the IRU's view, but adds: "I think we have to recognise that hauliers are going to want to have their drivers and trucks working and may well feel it is better to have them running at a loss than not running at all. However it is important for all operators to be aware of their running costs and hold out for realistic rates."

One haulier, who did not want to be identified, tells Commercial Motor : "It's a catch-22 situation really. Either I lose business to competitors that are willing to offer cheaper rates or I operate a loss on some jobs to keep my trucks and drivers working."