Getting money moving in the transport and logistics sector

One of the sectors in which we receive some of the largest volume of cases of late payment is in transport and logistics. If this is a sector in which you operate, we would welcome hearing from you so we can spread word of the work of my Office when it comes to helping small firms who have delivered on the contract, but money owed hasn’t followed as fast as it should.

In the last financial year (April 2025 to March 26) the transport and logistics sector accounted for 12% of formal complaints submitted to our casework team. For a single sector, this is a high percentage. The key reasons for late payment were issues around detail provided on the invoices ie many invoices were sent in bulk or without all the required information, which created confusion for the larger businesses on what each invoice related to. Another issue was cases where the smaller business would only be paid after the larger one was so any delay to the larger firm getting paid fed down to the smaller contractor in the supply chain.

I’m sharing the story of a case to illustrate how we operate and can help:

‘A small transport and logistics firm contacted the OSBC following work they were subcontracted to undertake by a larger logistics supplier. 30-day payment terms were agreed and all work was completed, yet the larger company still hadn’t paid and were not responding to email chasers. Eventually all communications stopped from the larger supplier, and the small business contacted the OSBC to find out what options they had to ensure payment was made. Following thorough checks by the OSBC Casework team, including reviewing all documentation and agreements between the two parties, the OSBC contacted the large company for their comments. The large company responded swiftly, and following support provided by the OSBC Casework Team, all funds were paid to the small business, which totalled over £410,000.’

I’m sure you will agree, this is a large amount to be owed.

If there are cases submitted from this sector where we can’t help or they are not in our remit, the casework team offers signposting to legal advice, or to an alternative enforcement body, who may be able to assist.

If you are a small firm in the transport and logistics sector and waiting on a payment, contact us. If you are a large company in the sector paying on time, consider applying for the Fair Payment Code and join current Awardees including Heathrow, Hitachi Rail and MLS Overseas Ltd who are celebrated and recognised for their payment practices.

Late payment is a multi-layered issue but by working on it from all angles of casework insights and good practice celebration, we can get the goods and payment delivered on time and on track!

Emma