Supermarket group Tesco PLC (LSE:TSCO) and online shopping giant Amazom.com Inc. have warned the UK government that the shortage of lorry drivers could cause severe disruption to deliveries and even panic buying in the run-up to Christmas.
According to a report by ITV, in a meeting organised by the Cabinet Office last Thursday, Tesco revealed a shortfall of 800 HGV drivers and asked the government to temporarily make it easier to bring in workers from abroad.
Despite offering new drivers bonuses of £1,000 since July, Tesco has only managed to recruit as many drivers as it has lost to its rivals.
Andrew Woolfenden, the supermarket’s UK distribution and fulfilment director, said the problem was industry-wide and expressed concerns that the situation will get much worse in the weeks leading up to Christmas, ITV reported.
“Our concern is that the pictures of empty shelves will get ten times worse by Christmas and then we’ll get panic-buying,” Woolfenden said.
Amazon has also raised pay for lorry drivers, but is still struggling to fill vacancies.
Katherine Mercer, Amazon’s public policy manager for the UK and Ireland, told the Cabinet Office meeting that recruitment efforts were “back at square one” and that Christmas will be “a real challenge”.
McDonald's Corp told the government that it has lost drivers to Amazon and has found it hard to replace them, the report said.
Beth Hart, the burger chain’s Vice President of Supply Chain, said deliveries had been disrupted and that shortages of ingredients had impacted menus and forced some of its 1300 UK sites to close early.
The Road Haulage Association and Logistics UK estimate that the UK needs up to 100,000 new lorry drivers and have asked the government to make it easier to bring in drivers from abroad.
But the government is resisting calls for temporary visas for EU drivers and wants to solve the crisis by recruiting British lorry drivers.
A Tesco spokesperson told ITV: "We have good availability, with deliveries arriving at our stores and distribution centres across the UK every day.
"While the industry-wide shortage of HGV drivers has led to some distribution challenges, we're working hard to address these and to plan for the months ahead, so that customers can get everything they need."
Meanwhile, a government spokesperson said: "We recognise business is facing a range of challenges and we are taking steps to support them, including streamlining the process for new HGV drivers and increasing the number of driving tests. Progress has already being made in testing and hiring, with improving pay, working conditions and diversity."
Tesco shares were 0.36% lower at 260.70p in late morning trade.
READ: UK food producers will pay 500% more for CO2 as part of govt deal