Motor Transport 9 April 2018

Page 1

Sharp ■ Informed ■ Challenging

9.4.18

NEWS INSIDE Back on track

DX Group management team feeling positive

p3

The ratings game

Direct Vision Standard ratings have been set

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Grim figures

Yodel reports £82.5m pretax loss in latest figures p8

DVSA to prioritise levy-evading foreign hauliers Non-payment of the HGV Road User Levy by foreign hauliers is a “major priority” for the DVSA, according to transport secretary Jesse Norman. Responding to questioning from fellow Conservative MP Andrew Lewer about whether the DfT plans to enhance its technology to tackle nonpayment of tolls and fines issued to foreign-registered trucks, Norman said: “The DVSA notes that enforcement of non-GB HGVs is a major priority. “In 2016-17, it checked more than 88,000 non-GB HGVs at the roadside, which accounted for more than 62% of all HGV vehicles stopped for enforcement checks. From those checks, the DVSA issued just under 17,000 penalty notices. These covered offences including the non-payment of the HGV Levy, mechanical offences and drivers’ hours.” Norman said in the past year, a number of vehicles were “directed out of the country” and many were immobilised.

News Extra p12

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Nine of the top 10 companies in the MT Top 100 pay men more than women

Gender pay gaps exposed By Emma Shone

The transport sector is guilty of paying men more than women, with nine of the top 10 companies in the MT Top 100 reporting a gender pay gap. The deadline for reporting gender pay gaps for companies with more than 250 employees passed last week. The outcome was a median average pay gap of 9.7% in favour of men across businesses in the UK. While Royal Mail, the UK’s largest operator, reported that its mean average female wages were 2.1% less than the average male pay, the median average measure showed a 1.5% gap in favour of men. Logistics consultant Kirsten Tisdale from Aricia said that in the case of gender pay gaps, reporting the median is the better indicator of a company’s performance, “as it effectively removes the effect of a small group of low-paid apprentices or a very highly-paid CEO”. Whistl, which is placed 10th

MEDIAN PAY GAPS (%) MEN OVER WOMEN

in the MT Top 100, is the exception and pays women 5.2% more on median average. HR director Lynn Dillon said: “Whistl is pleased that we appear to have bucked the trend in the top 10 of the MT Top 100. We are committed to ensuring that we employ the best people in the sector and that we treat our employees equally.” The worst in the Top 10 was XPO Logistics’ Bulk division, which reported a median pay gap of 31% in favour of men. DHL Supply Chain has a median pay gap of 12.7% to

the detriment of its female employees. A statement from the business said: “We are not complacent and will continue to seek every opportunity to further narrow the gap.” Results from the 10 companies also reflected the lack of women in the sector, especially at board level. Credit rating information supplier Creditsafe said that results from the whole of the transport sector were reflective of this trend. CEO Chris Robertson told MT: “In the transport sector, it’s clear that not only is there

Royal Mail 1.5 DHL Supply Chain 12.7 XPO Logistics - Transport solutions 6 - Bulk 31 - Supply chain 12 Wincanton 7 DPDGroup 2 UPS 19.8 Kuehne + Nagel 8.1 TNT UK 8.6 Eddie Stobart 11.1 Whistl (5.2)

a gender pay gap, but also a huge gulf between male and female representation on boards. “Only 17.5% of directorships on boards in the transport sector are occupied by women, compared with 82.5% for men. It’s no wonder equal pay remains such a challenge for the industry.”

MEPs give go-ahead to CO2 emissions law A new law requiring truck manufacturers to measure and publish the CO2 emissions and fuel consumption of new HGVs has been given the green light by MEPs. Under the legislation, manufacturers will have to publish the aerodynamic performance of the tractor unit, as well as its engine fuel efficiency. These will be measured

Focus: Business barometer p14

using an EU Commissionapproved simulation software that measures the CO2 emissions and fuel consumption of HGVs for specific loads, fuels and mission profiles. Known as the Vehicle Energy Consumption Calculation Tool (VECTO), the software will also be used to measure the performance of new trailers from 2021. The law will be reinforced

Viewpoint: Scott Dargan p16

by a verification procedure, which will include on-the-road testing of heavy-duty vehicles in production and in service. The EU is also proposing that independent third parties, as well as public sector agencies, will be able to run the verification procedure. Manufacturers that fail to report the data or falsify the results will be subject to a system of administrative fines. Fuel theft p18

Profile: Huntapac 22

Careers hub p25

05/04/2018 16:45:13


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05/04/2018 09:30:41


News

motortransport.co.uk

Comeback involves empowering managers, expanding network and separating freight and express arms

DX Group turnaround on track By Chris Druce

Embattled DX Group’s new management team has said that its turnaround strategy is gathering pace. With a pre-tax loss before exceptional items of £9m (2016: £500,000 loss) and a cash call for £4m from investors to allow it to deliver its vision for the reborn group, it is clear there is no time to dawdle. Under CEO Lloyd Dunn, DX is pinning its hopes for a comeback on empowering its managers, expanding its network and separating its freight and express businesses, the antithesis of the OneDx integration championed by the executive team ousted last year. So strongly does Dunn and his new team feel about separating the business, returning it to something akin to when DX, the mail, courier and network logistics firm, purchased Nightfreight in 2014, that the majority of £5.1m of exceptional items in its latest reporting period are to do with exactly this. DX Freight, previously

Nightfreight, includes oneand two-man delivery services and DX Logistics. It is, according to Dunn, the immediate area of concern due to its “current severe underperformance”. Margins at the division have declined since 2015 and it generated an EBITDA loss for the six months to 31 December 2017 of £10.9m. It’s not all bad. Division revenue increased by 15% yearon-year to £67.4m in the sixmonth period thanks to the expansion of the operator’s Ikea contract, and last year’s Avon UK deal. However, the division remains reliant for

two-thirds of its revenue on its DX 1-Man service where performance dipped. Its smaller two-man service also struggled. DX said it has already completed some of the “fundamental steps” required to turn

DX Freight around, with new organisational and management structures in place. Operations have been reorganised into five (previously three) regions, new pricing agreed and the two-man service will be integrated with DX Logistics. DX Express, the business’s other division, comprises Exchange, its private members B2B mail and parcel delivery network serving the legal, financial and pubic sectors; Secure, its B2C delivery service; and its courier and mail operations. Revenue here was 6% down year-on-year in the six-month period, at £79.2m. The operator is managing a gradual decline in its Exchange busi-

STATE OF PLAY – SIX-MONTH RESULTS Revenue in the six months to 31 December 2017 was up 2.7% at £146.6m (2016: £142.7m), although the company made a pre-tax loss of £9m (2016: £500,000 loss) before exceptional items. An exceptional charge of £5.1m was significantly lower than the £27.4m of exceptional items recorded in the same period a year ago. It meant DX Group’s reported pre-tax loss was £14.1m in the period, compared with £29.3m in the final six months of 2016.

ness as ever more documents are moved electronically. Despite this, the division is profitable, contributing £7.5m of EBITDA in the six months. Dunn and his team intend to separate Exchange from Secure and Courier, in essence to reinforce the exclusivity of the B2B network and improve customer service and innovation. It all feels a long way from the enthusiasm of 2014 when former DX boss Petar Cvetkovic said of the union: “Together, we can build a sustainable business to compete more effectively in the courier and network distribution market. “We are now capable of delivering everything from a letter to a complete bedroom suite with king-size bed – including the assembly and installation – through our twoman ‘white glove’ premium delivery service.” Current boss Dunn remains bullish. “DX is a sleeping giant – if we keep our focus and momentum, DX will once again be a force to be reckoned with,” he insisted.

Widdowson & Son goes out, not with a bang but a whimper AM Widdowson & Son ended its days with a whimper after a CVA and two pre-pack administrations left little more than a husk, a new progress report confirms. Following the Leicesterbased haulier’s purchase by Malta-registered HLD Group in 2015, it went through the insolvency process several times under the administration of Leonard Curtis. This left unsecured creditors £10m out of pocket collectively. Via a number of legal entities it remained under the ultimate control of HLD Group, which is headed by Demis Ohandjanian, throughout. However, by the time of its final administration in January 2017, now under the name of Widdowson Logistics, the sale of vehicles, trailers and fuel to 9.4.18

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Birds Transport Leicester and garage and office equipment, racking, general plant and vehicles to Glenfield Storage Solutions raised just £98,000. As recently as 2016 the prepack sale of AM Widdowson business raised £2.5m and secured 220 jobs. Following the most recent administration, Leonard Curtis struck service agreements with Birds Transport Leicester and Glenfield Storage Solutions, both ultimately controlled by Ohandjanian. The deal with Glenfield related to the pallet repair division of the Widdowson business and was intended to see 70% of the profit retained by Glenfield, and the remainder used in the Widdowson Logistics insolvency process.

The Birds Transport Leicester Services deal, on the same terms, was to allow a “number of key contracts with customers” to be completed. However, Glenfield and

Birds Transport Leicester made no profit during the service agreement period and Birds Transport Leicester was shuttered last February with the loss of all jobs. On 1 March

2017 Glenfield transferred the 39 employees of the pallet division to unconnected company Pooling Partners Service Centre Glenfield under Tupe, the report said. MotorTransport 3

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ROCK STEADY. “Advances in technology and smart service scheduling mean our vehicles spend more time on the road earning money. But greater sophistication could also mean more complex failures, so we entrust all our repair and maintenance to Scania. They’re the experts, and their contracts take care of absolutely everything. And that, together with no financial surprises, is perfect for our peace of mind.” Darren Forrester, Joint Managing Director Skene Group Construction Services Ltd.

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05/04/2018 09:27:25


News

motortransport.co.uk

Hauliers will need to get information from truck manufacturers

DVS star ratings out By Hayley Pink

Pallet networks and hauliers form forum to share experiences Pallet distribution hauliers have banded together under a new RHA forum that aims to tackle the major issues facing the sector, while also sharing best practice. The forum is open to association members that are either in a pallet network or hauliers involved in pallet distribution. The pallet distribution forum will operate under the umbrella of the Transport, Warehousing and Pallet Distribution Group.

Paul Johnson, MD of TPN member Transervice, played a central role in setting up the forum. “This is not about driving a wedge between the pallet networks. Until now, we, as pallet network hauliers, had no voice other than within our own networks,� he said. He added: “We may be in different networks but we all face the same problems and issues. This group is a place where we can share our experiences and our knowledge.�

The Direct Vision Standard (DVS) ratings for Euro-6 trucks are now available, but in an unexpected twist TfL has placed the burden of finding out what they are on to hauliers and truck manufacturers. The DVS sees HGVs rated on the direct vision available from the cab, with zero the lowest rating and five the highest. From 2020, any truck rated zero will be banned from entering London, unless it meets the requirements of a new safety permit scheme, which is still under consultation. From 2024 HGVs would require a three-star rating. Hauliers will need to contact their truck’s manufacturer direct to find out how their vehicle has fared. A TfL spokeswoman said: “A number of options for operators to obtain star ratings

was discussed with an expert panel on which vehicle manufacturers, trade associations and other government organisations are represented. “The initial enquiry via manufacturers was the preferred method. As the project develops we will be investigating options for [part] automating this process.� Hauliers must supply information on their trucks, which could include chassis number and vehicle age, to their manufacturer, which will apply an approved DVS calculation. TfL said manufacturers will aim to respond within 10 days. Once calculated, hauliers will receive their star rating, with TfL keeping a record. TfL confirmed to MT that it does not hold a master list of ratings because of the large amount of variations possible. Asked how the rating scheme would be verified, a

spokeswoman said: “A defined technical measuring protocol will be applied by the manufacturers to determine the star rating of the vehicle. “TfL is developing the operating model for the permit application, issuing and enforcement of the scheme. Mechanisms to ensure the certification provided by the manufacturers is correct will be included in this.� While FTA head of urban policy Natalie Chapman welcomed the decision to finally publish details of the star ratings, she said: “The whole process of implementing a DVS in London has been incredibly frustrating and disappointing. “Especially, since the mayor seems determined to focus on visibility from the cab, when research shows new technology would deliver better results.�

The BIG freeze FORS has frozen its fees – again! It’s the third year in succession that the transport industry’s leading accreditation scheme has frozen annual subscription and audit prices for its members. And it’s a show of solidarity with FORS members in their efforts to succeed against the ever-increasing total cost of operation. )RU RSHUDWRUV RI DQ\ VL]H DQG RI DQ\ ÀHHW PDNH XS WKHUH has never been a better time to join over 4,850 FORS members who are achieving exemplary levels of safety, HI¿FLHQF\ DQG HQYLURQPHQWDO EHVW SUDFWLFH

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05/04/2018 09:32:15


News

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THE LONG RUN: Longs of Leeds has taken delivery of 25 SDC curtainsided trailers from Ryder as it celebrates a contract renewal with food manufacturer Symington’s. Among the new trailers are a dozen with liveries featuring two of Symington’s most popular brands: Mug Shot and Naked Noodle. Longs has worked for Symington’s for 10 years. The contract renewal includes Longs handling 12 loads a day for Symington’s, picking up from its Leeds warehouse and delivering to major retailers nationwide. Symington’s chief executive John Power said: “Symington’s prides itself on delivering best-in-class service to all its customers. Longs plays a big part in this and we are delighted to have it alongside us.” Last summer, Ryder supplied 50 DAF XF460 tractor units and 40 SDC curtainsiders to Longs.

Parcels carrier losses leap again after eight years in the red, but owners are confident of profitable trajectory

Yodel reports £82.5m loss By Emma Shone

Yodel made a pre-tax loss of £82.5m in its most recent financial year, the parcel operator’s biggest since 2013. The Barclay brothers-owned business has never turned a profit, but for the year to 30 June 2017 Yodel’s pre-tax loss leapt 64% compared with a £50.4m loss in 2016. Its recently published accounts

also reveal a drop in turnover of 3% year on year to £409.8m (2016: £422.7m). Former CEO Mike Cooper, who left the business in January, told MT last year that he expected Yodel to turn its first profit in the next 12 to 18 months. However, the strategic report to the accounts states the current reporting period will

also prove a challenge for the business. It said: “The directors expect the Yodel financial result for the year ending June 2018 will be challenging. The business is focused on delivering a number of key financial initiatives that are expected to set the business on a profitable trajectory.” The results’ strategic report added that click and collect

shopping also formed a key part of its growth plans. This will take place through the Collect+ brand, which Yodel co-owns, and its fully-owned subsidiary Drop and Collect. Yodel acquired the remaining 50% of Drop and Collect during the reported year. A Yodel spokesman told MT that it was continuing to modernise but that while its

service was improving, it was still victim of downward cost pressure in the market. “Yodel’s acquisition of Drop and Collect illustrates our ambition to invest in driving growth and build a sustainable future for the business. Our owners recognise the positive journey the business is on and are committed to investing in our people and infrastructure.”

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05/04/2018 09:33:55


News

motortransport.co.uk

Government says rate changes to be introduced in February 2019

HGV User Levy cut for Euro-6 trucks

Image: Shutterstock

By Hayley Pink

Cleaner lorries will receive a 10% discount on the HGV Road User Levy from February 2019 as part of government plans to improve air quality. HGVs meeting Euro-6 emissions standards will pay the lower rate, while Euro-5 and older HGVs will be hit with a 20% fee increase. The changes follow a consultation last year on reforming the HGV levy, which asked for feedback on ideas including emissions reduction and route optimisation. When the change comes into effect, the government said more than half of UK HGVs could benefit from lower fees, with industry paying less in the longer term as operators adopt cleaner lorries.

Roads minister Jesse Norman said: “This government is committed to improving the air we breathe and delivering a green revolution in transport. “HGVs account for approximately a fifth of harmful nitrogen oxide emissions from road transport, but only travel 5% of the total miles. We’re changing the HGV levy to encourage firms to phase out the most polluting lorries and bring in the cleanest ones.�

The RHA said the “grossly unfair� move will result in more than half of hauliers (56%) facing additional costs. Chief executive Richard Burnett said: “Road transport operators have made huge strides in adopting cleaner air technologies. Despite this, government has made it very clear it has no interest in either acknowledging that progress, or in supporting the industry on its journey to an emissionsfree future.�

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He added: “We all want clean air, but we consider it grossly unfair that government uses clean air policies to justify squeezing money out of already cash-strapped hauliers to plug financial gaps elsewhere. What’s needed is a realistic scrappage scheme that supports our industry, not a penal approach.� FTA has welcomed the government's recognition of Euro-6 as clean technology and the 10% cut in levy costs. However, it fears the 20% hike for older HGVs will unfairly penalise SMEs already facing additional costs from compliance with pending clean air zones. “It hurts them because the re-sale value of their slightly older lorries, Euro-4s and

Euro-5s, has fallen so much – making the jump to afford a Euro-6 so much greater,“ said FTA head of UK policy Christopher Snelling. He added that the government should have loaded the increase on to older (Euro-3 and below) trucks to create a short-term market for Euro-4 and Euro-5 vehicles that those delivering to city centres will be seeking to sell on. Snelling said: “Trucks have been getting cleaner for decades. We are not dealing with an intractable problem but merely the question of how soon do the beneficial changes come. “T he government ’s approach to cleaner air risks putting some smaller hauliers’ livelihoods at risk.�

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9.4.18

05/04/2018 10:10:21


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motortransport.co.uk

Following death of self-employed driver, carrier plans to introduce sick pay, annual leave and pension

DPD gives workers new contract By Emma Shone

DPD is to give its selfemployed workers new rights including sick pay, annual leave and a pension as part of a new driver code, which comes after the death of a selfemployed driver earlier this year. Self-employed driver Don Lane died in January after missing medical appointments to avoid a second £150 penalty from DPD, having been handed one the previous month after he took time off to attend a hospital appointment. As part of the new driver code, DPD will scrap the £150 fine system and introduce what it described as a more transparent, points-based system for service failures. The business said that the new worker contract will allow drivers to maintain the bene-

fits of self-employment, including flexible working and the opportunity for higher income, while giving them rights previously only given to employees. DPD said its employed and self-employed drivers will be given the option to switch to the new worker status when it becomes available. All its employees will be given the opportunity to switch employment status on an annual basis after that. The carrier added that employees would only be able to change after receiving extensive advice and information from the business. As part of the strategic review behind the new driver code, DPD said it has been consulting with its drivers around the UK. It has also been consulting with former Labour

Parliamentary Party chairman Lord Watts and former chairman of the business, energy and industrial strategy select committee Iain Wright.

DPD CEO Dwain McDonald said the business’s self-employed practices had not moved with the times. McDonald said that the

business recognised its need to improve the way it worked with its drivers, as practices were in need of an update. He said: “At the moment, we have drivers who are selfemployed and those that are employed directly by DPD. “While the vast majority of our self-employed drivers tell us they want to remain selfemployed, we want to provide them with a choice of options, including the new worker status. “We are looking at all aspects of how we work with our drivers at the moment, and I'm consulting closely with both our drivers and our external advisers Lord Watts and Iain Wright to make sure these changes are fair for all our drivers.” More details are expected on the new DPD driver code later this spring.

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MotorTransport 11

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News extra

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Fuel giant expands hydrogen presence around the capital as part of a wider alternative fuels offering

Full steam ahead for Shell’s hydrogen refuelling network By Emma Shone

By the end of 2018, Shell will have opened three hydrogen refuelling pumps on sites around London. But the oil and gas major says its hydrogen network won’t stop there, and that it is also committed to other alternative fuels. In February 2017, Shell opened its first UK hydrogen refuelling point at Cobham services, which was followed by a new site at Beaconsfield services on 27 March 2018. A third, located at Gatwick Airport’s North terminal, is in the final stages of production and, while the business is yet to confirm when this will open, it is certainly not far off. Shell hydrogen business development manager Mike Copson told MT London was a natural starting point for its hydrogen network.

“The reason that London came out as a focus was really driven by policy,” he said. “If you look at clean air policy, London has taken the lead. Also it’s where some sites were already, and it’s got a cluster in one place. So London was the natural first.” Opening sites in London also meant Shell had proximity to the UK H2Mobility consortium, of which it is a part. The new pump at Beaconsfield services is the first to be opened in collaboration with the project, and was also built in partnership with ITM Power. But Copson said Shell’s focus on London doesn’t mean it won’t be adding hydrogen pumps further afield. “I think there are going to be other cities close behind. Manchester’s been quite vocal and there are other clean air city proposals on the table.

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Copson said Shell’s focus is on the spectrum of available alternative fuels, and that he doesn’t see hydrogen as the only viable option, but rather one of many. “Hydrogen is actually part of a range of transport fuels we need to make a lower-carbon UK a reality. So it’s actually part of what we call the fuels mosaic. “To put it more simply, it’s not about backing a winner. It’s about saying as we move forward, depending on the sector you’re working in and driving in, and the location that you’re in, that there are going to be different fuel solutions co-existing as we go through the energy transition.” He added that the commercial vehicle sector is “one of the most diverse sections of the industry and there are a lot of opinions as to what the next thing is going to be in terms of future fuel. And that’s because they’ve done a very good job of making a diesel engine that’s very clean and efficient.” While Shell is already engaged with commercial vehicle OEMs around the world, Copson said the firm is keen to engage with the logistics industry and

get to grips with its refuelling needs for the future. “A lot of light- and heavy-duty OEMs are our customers, so the dialogue is happening. But we shouldn’t limit ourselves to the people we already do business with. “We should also be speaking to bodies that represent the industry, to consult with them on what their take on fuels is. “It’s a huge subject that we need to engage in pretty quickly. But also understand that we’re in an energy transition, we’re not in a flicking a binary switch mode. “We’re working towards a point in the future that no one has the answer for yet, and also the timelines are a bit elastic. So it depends on collaboration between energy providers, truck manufacturers and fleet operators, as well as making sure that the policies are supporting that.”

9.4.18

05/04/2018 10:07:45


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05/04/2018 09:35:42


Focus: Business barometer

motortransport.co.uk

The core economic data released so far in the first quarter of 2018 looks encouraging

Earnings up, inflation down, oil stable

Inflation

As expected, inflation continues to fall from its peak of 3.1% last November. The latest figures show the Consumer Price Index (CPI) was 2.7% in the 12 months to February. CPIH inflation, which includes owner-occupiers’ housing costs, was 2.5%, the smallest increase since March last year. The slowdown is mainly due to the fact that it is now more than a year since the pound’s sharp drop in value, so the knock-on inflationary effect on prices is dropping out of the 12-month inflation calculation. The consensus of the latest forecasts is that CPI will be around 2.4% by the final quarter of 2018. The old-school Retail Prices Index (RPI) is now discredited by the numbercrunchers in the Office for National Statistics (ONS). In a report last month explaining the weaknesses of the RPI calculation, particularly the formula used and its tendency to overstate the true rate, the ONS concluded: “Overall, we do not view the RPI as a good measure of inflation.”

Oil and fuel

The oil price climbed steadily throughout the second half of last year and that trend seemed set to continue in 2018 – January’s average of $69 (£49)/barrel was Brent crude’s highest monthly figure since November 2014. However, February and March brought some respite, with Brent levelling out at approximately $65. Growing oil supply from the US, including shale oil, is 14 MotorTransport MTR_090418_014.indd 14

Earnings and unemployment

Provisional data published by the ONS last month shows average total weekly earnings in the three-month period to the end of January were 2.8% up on the same period a year earlier. That’s the biggest increase since September 2015. More significantly, it marks the end of nine months of earnings growth lagging behind CPIH inflation, when real earnings were actually falling. According to the ONS, this 2.8% annual increase revealed in the latest data means the average increase now matches inflation, so in real terms earnings are least static rather than falling. The consensus of opinion suggests earnings growth will remain at around 2.8% throughout the year, and with inflation expected to decline slightly, average earnings should soon increase in real terms, albeit only marginally. The UK’s remarkably low unemployment rate remains a beacon in the post-Brexit referendum gloom. It was just 4.3% for the three months to the end of January, equalling the lowest rate since 1975. Most analysts believe unemployment will edge up in the coming months, but only to about 4.4% by Q4. That forecast might be tested by the numerous profit warnings and store closure programmes that hang over the UK retail industry. Sources: Bank of England; Confederation of British Industry; European Commission; HM Treasury (independent forecasts); International Energy Agency; International Monetary Fund; Office for Budget Responsibility; Organisation for Economic Co-operation and Development; US Energy Information Administration; World Bank.

BRENT CRUDE OIL PRICE 80 70 60 50

$/barrel

believed to be one factor helping to rein back the oil price. Analysts now believe demand and supply in the oil market is fairly well balanced, so in theory there is a good chance of price stability in the foreseeable future. In fact, most forecasters expect Brent to average $62 for 2018 as a whole, in which case fuel prices seen in Q1 might soften slightly. The increasing value of the pound against the dollar during the past year has taken some of the sting out of the rising oil price when applied to the cost of fuel. If sterling remains at its February and March average of almost $1.40 – its highest since its post-referendum plunge – and the oil price forecast is correct, bulk diesel (full loads) typically should average 94p to 98p/ litre for the rest of this year.

40 30 20 10 0 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar '17 '18

INFLATION 3.5

CPI

CPIH

3.0 2.5 2.0 %

Provisional data in the government’s Services Producer Price Indices (SPPI) reveals road haulage rates last year were just 0.7% higher on average than a year earlier. Although a very modest hike, this was the biggest annual increase recorded by the SPPI since 2012. In 2016 the average increase was a mere 0.2%; rates declined by 0.2% in 2015. Looking at the quarterly data from 2017, there is a clear pattern of accelerating growth. Haulage rates in Q1 were unchanged from the equivalent quarter in 2016, but in Q2 the rates were 0.3% up on a year earlier. The increase rose to 1% in Q3 and to 1.2% in Q4 – the biggest quarterly increase since Q1 2012. So, is the business climate in 2018 strong enough to support this quickening pace of rate rises? The next SPPI report featuring the first haulage rate data garnered during Q1 2018 is due to be published in May.

1.5 1.0 0.5 0.0 Sep

Oct

Nov

Dec '17 Jan '18

Feb

EARNINGS GROWTH 3.0 Average earnings growth (%)

Road haulage rates

2.5 2.0 1.5 1.0 0.5 0.0 Jun

Jul

Aug

Sep

Oct

Three months to .....

Nov

Dec '17

Jan '18 9.4.18

05/04/2018 15:25:56


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05/04/2018 09:37:23


Viewpoint

motortransport.co.uk

The rising cost of keeping cool T Scott Dargan MD, northern Europe and service EMEAR Carrier Transicold

he tightening of regulations on refrigerants with high global warming potential (GWP) is driving fears of a shortage of supply and sending prices soaring. The cost of one of the most widely used refrigerants, R404A, has increased by more than 500% since May 2016 – making it more costly to keep refrigerated fleets on the road. These are the wide-reaching implications of regulations intended to greatly reduce the use of hydrofluorocarbons (HFCs) in the EU. In 2015, legislation was introduced to restrict permitted supplies of HFCs, which are potent greenhouse gases, used in refrigeration. The amount that can be sold legally by suppliers will drop 37% by 2020. In addition, Defra may introduce civil penalties for infringements, replacing the current approach that is difficult to enforce. This could see those in breach fined up to £200,000, depending on the severity of the infringement and size of business. To keep costs under control and protect your business, it is vital to invest in the right technology. One such innovative advancement are

microchannel heat exchanger coils – found in Carrier Transicold’s Vector 1550 and 1950 units, for example – which reduce refrigerant charge by up to 25%. Carrier’s e-Drive all-electric technology can also cut refrigerant leak rates by up to 55% – that’s less gas to start with plus less chance of losing it, so a double benefit. Lowering charges and reducing leaks helps limit costs but using refrigerants with a lower GWP is also worth consideration. Carrier Transicold promotes R452A as the best option, as it gives a 45% reduction in GWP versus R404A. Our vision at Carrier Transicold is to develop sustainable alternatives that go even further. In Europe, we are already operating prototype trailer units running exclusively with closed-loop CO2 refrigerant known as R744. For now, specifying transport refrigeration units with low refrigerant charges, class leading containment levels and reduced GWP values will have an important effect on your bottom line as the HFC phase-down legislation tightens.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Group news editor Chris Druce 2158 Deputy news editor Emma Shone 2164 Group technical editor Colin Barnett 2141 Aftermarket editor Roger Brown 2168 Vans editor George Barrow 2156 Urban editor Hayley Pink 2165 Group production editor Clare Goldie 2174 Chief sub-editor Rufus Thompson 2143 Key account managers Andrew Smith 07771 885874 Miranda Hall-Morley 07825 409551 Display telesales Barnaby Goodman-Smith 2128 Event sales Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising Head of sales operations Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170

We must do more to attract female workers T Steve Hobson Editor Motor Transport

here has been a lot of talk about the gender pay gap of late and its inequality. Some of the major supermarkets are facing a legal challenge, with claims that some store-based jobs such as checkout assistants – filled mainly by women – are paid significantly less than warehouse and distribution jobs – mainly filled by men – despite being of equal value. This is reminiscent of the equal pay claim brought years ago against local authorities by school dinner ladies (and yes, most are ladies) who argued their work was of equal value to the (mainly male) bin men. They were successful in their claim, costing councils millions in back pay and higher wages. There are recognised methods of calculating the value of work to an organisation, and only time will tell if supermarket store staff should indeed be paid the same as their distribution colleagues. But surely the real issue is why more women are prepared to operate tills than drive forklift trucks or HGVs. Why do supermarkets and other logistics operations have to pay more to get people to work in warehouses and DCs? Since the end of collective bargaining, most pay rates are determined by

16 MotorTransport MTR_090418_016.indd 16

simple supply and demand, and there may be good reasons why logistics pays better. The real question is – why do so few women feel able to take on those better-paid jobs in logistics? Most people will have some idea. Warehousing and truck driving involve long, unsociable hours in working conditions most women would find unacceptable (let’s be honest, they are unacceptable to many British men, which is why we have become dependent on east European labour). The reality is that it is usually the women in a family who get lumbered with childcare and other domestic responsibilities, making flexible shifts in a local shop more attractive, despite the lower pay rate. And yes, there is a sexist element in the predominantly male environments in logistics that puts women off. Addressing these issues and attracting more women is something the industry has to consider, and increasing the pay of storebased workers isn’t going to help.

Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/ year. RoW £163/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2018 DVV Media International Ltd ISSN 0027-206 X

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 9.4.18

05/04/2018 10:38:47


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05/04/2018 15:53:10 05/02/2018 10:28


Fuel theft

Criminal prices

Reselling stolen fuel on the black market can distort fuel prices. Laura Reeve reports

W

hen fuel prices rise so too does fuel theft, and with the RAC warning higher fuel prices could be the new norm, it is a problem no operator can afford to ignore. Fuel is usually stolen either by siphoning from a vehicle fuel tank, or by regular skimming of fuel in small volumes over time. The International Road Transport Union (IRU) says occasional criminals and employees that commit fuel theft could amount to hidden losses of several hundred euros over the course of a year. With professional theft, financial losses due to lost fuel, damage repairs and potential vehicle off-road costs can extend to customer compensation fees if loads are not delivered on time. Tony Carter Transport in Gateshead has been targeted at least five times in the past six months at a cost estimated to be between £2,000 and £4,000, not including associated vehicle off-road costs. It is unusual for insurance companies to compensate for stolen fuel because it is not part of the vehicle or load, and the amount stolen is difficult to prove. The IRU also warns the resale of stolen fuel on the black market can distort fuel prices.

Star rating

A report published by the National Vehicle Crime Intelligence Service (NAVCIS) states: “The insufficient quantity of secure parking is a major contributor to theft vulnerability throughout the UK.” While the IRU recommends selecting parking facilities using its TRANSPark app, worryingly, of the 360 parking facilities listed for the UK, only 10 were graded three stars out of a possible five for security, with none achieving four or five stars. SNAP Account provides drivers with safe parking through its network of pre-bookable depot sites. These are operators’ own yards, with tight security measures so drivers can rest assured that the site is under surveillance and their fuel is safe. 18 MotorTransport MTR_090418_018-021.indd 18

The site owners are notified in advance which drivers have booked a space, so they know who to expect, and the drivers know that there will be a safe space waiting for them. The full scale of fuel theft is unclear because it largely goes unnoticed or unreported, and no standardised method exists for collecting, recording and categorising fuel theft data.

Types of fuel theft

Casual theft or internal skimming of fuel is thought to be the most common type. Shockingly, Chrys Rampley, manager for infrastructure and security at the RHA, estimates that incidents where a fuel tank is drained while parked up at a lay-by, truckstop or company depot account for just 1% of all fuel theft. Russell Fowler, CEO and chairman of FuelDefend Global, agrees that tank-draining is rare in the UK. He explains: “We have sold £1m worth of units worldwide over 10 years and I can only think of two occasions globally where an anti-siphon was fitted and a hole was put in the tank.” The RAC agrees, saying it is rare for its HGV recovery teams to be called to such an incident. But anecdotal evidence suggests the problem may be more widespread. The National Business Crime Solution (NBCS) was unable to provide data relating to fuel theft because it is “not receiving consistent information from industry and/or from the police”. Neither the Office for National Statistics (ONS) nor the National Police Chief’s Council (NPCC) could help either, because commercial vehicle fuel theft is not classified as a specific offence type. It is most likely to be classified as ‘theft from a vehicle’ or ‘other theft’. The most comprehensive data available is the SCREEN United Kingdom Cargo Theft report, which is compiled by BSI Supply Chain Services and Solutions in conjunction with NAVCIS. This report focuses specifically on cargo theft but there is some reference to fuel theft. At the time of going to 9.4.18

05/04/2018 10:27:19


motortransport.co.uk

The new natural gas-powered Iveco Stralis NP

GAS TRUCKS One more radical way to avoid fuel theft is to consider gas-powered vehicles. Martin Flach, alternative fuels director at Iveco, believes the inability to steal fuel from a gas vehicle is a “big selling point”. He says trucks running on compressed natural gas or liquid natural gas do not present a risk at the moment because “criminals would require some serious kit to steal the gas”. Although thieves may develop sophisticated ways of stealing gas in the future, there is currently no viable way to do so.

VEHICLE CRIME HOTSPOTS If we assume that fuel theft incidents correlate to areas where cargo theft rates are also high, then the United Kingdom Cargo Theft reports offer some valuable insights. ■ The counties of Northamptonshire, Leicestershire, Kent, Nottingham, Cambridgeshire, Bedfordshire and Essex were named throughout 2017 as the areas with the highest cargo theft. ■ Northamptonshire consistently ranked top for cargo thefts across all three quarters, with 25.4%, 25.1% and 17.6% of all cargo thefts occurring in the county respectively. ■ Incidents of fuel theft correlate to periods of relatively high fuel prices. ■ Wednesday is consistently the most popular day for a cargo theft to occur, being 24.3%, 21.7% and 22.7% of all thefts in each respective quarter. ■ The M1, A14 and A1 motorways are consistently the top three trunk routes affected, and combined accounted for almost 60% of all cargo thefts in Q1. Of specific note is that Kent experienced the highest amount of fuel thefts of all counties for Q2 and Q3. The Q2 report also specifically states that thieves targeted parked trucks for fuel thefts in Essex. 9.4.18

MTR_090418_018-021.indd 19

Third quarter of 2017: high-risk areas for cargo theft in the UK Source: BSI Supply Chain Services and Solutions

➜ 20 MotorTransport 19

05/04/2018 10:27:40


Fuel theft

WITH 63 MT LOADS OUR TESTING IS TOUGHER

press, the latest report available was for Q3 2017. Of the total 1,196 cargo theft incidents across the first nine months of 2017, 60 were fuel thefts, accounting for 3%, 7% and 8% of all cargo thefts in the respective quarters. There is frustration among operators and drivers at the lack of response from police when a fuel theft occurs, and this mindset compounds the problem of the shortage of statistics. Unsurprisingly, given that it is a key transit route and home to a large number of DCs, Northamptonshire consistently ranks top for freight crime. Fuel theft incidents in the county have increased by 20% year on year between 2015 and 2017, increasing from 199 in 2015 to 283 in 2017, although how much of this increase is due to better reporting is difficult to ascertain. Despite the rising incident rate, Jamie Culverhouse from the Force Intelligence Bureau at Northamptonshire Police explains that stretched resources and the low risk level of fuel theft means it is low in the force’s priorities, even saying: “If we had an additional 30 thefts per day, fuel theft probably still wouldn’t increase in priority”. He adds: “The difficulty with fuel-theft crime is that it is hard to detect, and perpetrators are hard to catch because there are no specific goods to go after. If stolen fuel is recovered, there is no way of tracing which vehicle it was stolen from.” With statements like Culverhouse’s, and other reports from operators who claim police have done little to help them, it is understandable that operators don’t report fuel thefts. However, one special constable with West Mercia Police emphasises the importance of doing so. He describes one instance where stolen fuel was recovered but a prosecution could not proceed because there were no reported thefts. Tony Carter believes his thefts have been orchestrated by an organised gang, which he believes has bigger implications: “This is not simple crime that is just costing my business a few hundred pounds, it’s a bigger picture.” Carter is adamant that, while those responsible for his spate of thefts have not yet been caught, it is still important to report thefts so police will take it more seriously over time.

Prevention campaign

TM

Owned or used under license.

20 MotorTransport MTR_090418_018-021.indd 20

The East Midlands Freight Crime Taskforce, headed up by Northamptonshire Police, has introduced a ‘media and prevention campaign’ with initiatives to alert drivers of the theft risk in the county, such as the use of an advertising trailer showing crime prevention messages in three languages. Operation Barric by the East Midlands Operational Support Service, a collaboration between Leicestershire, Northamptonshire, Nottinghamshire and Lincolnshire, was set up to target cargo theft, not specifically fuel theft, but it stands to reason that tackling one is likely to have an effect on the other. Operation Magna, launched by Nottingham Police, has also seen an increased police patrol presence along the A1 corridor. Chris Powell, a solicitor for Smith Bowyer Clarke, which specialises in road transport, believes that pressure to act is mounting. He explains: “MPs and industry bodies have increasingly called for a large-scale expansion of the lorry park network, with assistance from government funding”, but he warns that environmental and planning permission laws mean that such initiatives are likely to take time. ■ 9.4.18

05/04/2018 10:28:12


motortransport.co.uk

Northamptonshire police theft prevention advertising trailer (above). A FuelDefend Global fuel anti-syphon device fitted to a truck (right)

TOP TIPS FOR REDUCING FUEL THEFT The IRU recommends implementing guidelines based on monitoring, prevention and reporting, and there is advice available to make fuel theft less attractive.

Monitoring

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■ Have a fuel inventory system to help identify when a theft has occurred. ■ Include a telematics system with on-board diagnostics fuel monitor. This can also be installed for fridge-fuel monitoring.

■ Some fuel card companies, such as Key Fuels, offer fuel card solutions with enhanced controls for tracking driver fill-up behaviour.

■ Include the vehicle’s fuel system in your regular inspection regime to spot any attempts to tamper with the fuel cap or tank.

Prevention – parking

■ Provide staff with access to secure parking. Generally, paid-for facilities provide the best security.

■ If this is not feasible, encourage and train drivers on how to park defensively.

Prevention – security measures at depots

■ Invest in effective security lighting and CCTV if possible, with particular focus on vulnerable areas and fuel storage tanks.

■ Display visible security signage to act as a deterrent, highlighting the use of video surveillance or other form of security service.

■ Arrange for checks of vehicles and premises outside of normal working hours.

■ Consider the use of fuel dyes. ■ Consider using fuel cards rather than storing fuel.

Prevention – security measures on the vehicle

There are many aftermarket products that can make fuel tanks on vehicles less vulnerable. For example: ■ covers for sender units and devices for protecting the drain plug; ■ alarms, PIR floodlights and/or side view cameras; ■ fuel locking caps or fuel locking cap alarms. While these measures can act as strong deterrents for opportunist thieves, they may do little to ward off criminal gangs who will find workarounds that cause substantial damage.

Reporting

Fleet operators should implement an internal reporting policy for drivers, including reporting suspicious behaviour, actual thefts and even attempted thefts to the police. The gathering of this intelligence can identify national hotspots, which could in turn increase prevention focus and prosecution rates. Fleets should also establish internal communication processes to allow for the passing on of relevant information between its drivers. Self-employed driver David Kenney agrees, but believes there is a need for independent intervention: “Drivers spread the word in their own company and among their colleagues, but it needs tackled at a national level.” MT found national fuel theft statistics to be incomplete. There appears to be a lack of ownership of the problem and flaws exist in recording and reporting processes. A more co-ordinated approach between authorities, individual police departments and industry is required to establish a full picture of the issue, and operators and drivers must take more responsibility to protect their own fleets and prevent fuel theft crime. 9.4.18

MTR_090418_018-021.indd 21

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MotorTransport 21

05/04/2018 10:28:32


Profile: Huntapac Produce

Packing a punch Fourth-generation family firm Huntapac Produce runs its own fleet of trucks as well as being a major vegetable grower. Steve Hobson met operations director Will Hunter to find out more

A

vid readers of MT’s sister title Commercial Motor will remember the fascinating day in the life story of a festive parsnip published in the Christmas 2017 issue. The company behind the parsnip is Huntapac Produce, a major vegetable grower based in Tarleton near Preston in Lancashire, which also runs its own fleet of immaculate trucks and trailers to support the business. Huntapac is a fourth-generation family firm founded in 1942 by William Hunter. Like many dynasties, Huntapac likes to get maximum use from its stationery by naming each generation the same – in the Hunter family’s case, William. The founder’s son William Hunter, or Bill as he was better known, became MD and in the 1970s grew the business substantially by supplying the fast-growing supermarket chains with carrots and parsnips. He then became chairman and his two sons William Hunter (known by his middle name Warren) and Jason

Hunter took over the running of the business. Bill sadly died in 2014 age 73. Warren’s 23-year-old son William – the tenth member of the family to bear the name but best known as Will Hunter – is now operations director and in charge of the transport fleet, while Will’s brother Henry is an engineer in the business. “We started in 1942, growing salads,” says Will Hunter, pictured below. “We didn’t do carrots and parsnips then. We still grow salads around here.” Huntapac has steadily expanded its territory and it now farms mainly leased land across the UK. “We own very little land,” says Hunter. “We probably own about 200 acres at one of our farms four miles down the road. Apart from that, all the carrots and parsnips are grown in Shropshire, Yorkshire, Norfolk and Scotland. “A lot has changed in the past five to 10 years. We were only probably turning over £18m 10 years ago and this year we are looking at £50m-plus. We supply all the major retailers and do everything from the growing, transport, washing and packing ourselves.”

Family commitment

Hunter puts the firm’s success down to the commitment of the close-knit Hunter family, who traditionally start working in the business as teenagers. “There are not many companies now where the fourth generation is coming through the business and have properly worked their way up from the bottom,” he says. “We know what we’re about and know how to grow. The retailers can see that.” Root vegetables present a unique logistical challenge for growers as – unlike potatoes – they have to be harvested fresh every day. 22 MotorTransport MTR_090418_022-023.indd 22

“You’ve then got to wash them within 12 hours,” says Hunter. “That is why there is so much pressure at Christmas on carrots and parsnips, because they are harvested daily whatever the weather.” Ensuring reliability and continuity of supply is one reason Huntapac runs its own fleet of 60 trucks and 100 trailers. “It’s probably partly because we like to keep control and either do it and do it properly, or don’t bother,” says Hunter. “Doing our own transport is another USP that no one else in the produce industry seems to have.” The seasonal nature of fresh produce means the fleet now spends half its time doing haulage for third-party clients. “Our own bulk and freight work is now only 50% of the transport business,” says Hunter. “The other 50% is primary haulage for companies like Sainsbury’s, Gist and DHL, mainly on fridge work.” While carrots and parsnips are harvested in the UK all year round, there is a 10-fold spike in demand in the two weeks in the run-up to Christmas. Huntapac also grows asparagus in Formby for one regional supermarket chain, and salads and brassicas from April until December, after which it will import them from Spain. It also imports other produce such as leeks, butternut squash and radishes. 9.4.18

03/04/2018 11:14:03


motortransport.co.uk

A PARSNIP’S JOURNEY For those of you who didn’t read the day in the life of a Christmas parsnip, this is the short guide to how carrots and parsnips get from the field to the supermarket shelf. Huntapac harvests every day in different parts of the UK, using machinery that loads the vegetables into bulk tipping trailers. These are moved from the fields using two specialised Iveco 6x6 tractor units and then handed over to the conventional 6x2 trucks to be hauled to Huntapac’s central washing and packing plant in Tarleton. While this quite often involves long trunks, it is cheaper to take the produce to the plant than replicate the expensive processing kit elsewhere. “One of our biggest growing areas in Shropshire is three hours in a wagon,” explains Hunter. “But the reason we do that is because if it's wet on one side of the country and not the other, we can pull produce from there. “We've invested in a lot of packing machines here over the past couple of years because of the volume growth. We've got 18 Newtec bagging machines now and they cost between £200,000 and £450,000 each. Then you've got all the washing plant – you've got to be able to keep your eye on it. As a family, we're around the site five or six times a day. We look at everything and we like to have everything under our control.” After washing, the vegetables are bagged and put in trays. These are placed in a cold store before being shipped to a supermarket RDC, usually within 24 hours. Tarleton has two cold stores, each with a capacity of 1,000 pallets, but most of the vegetables get to spend no longer than a weekend in storage before being shipped out.

Getting the timings right

As well as carrying out third-party haulage, Huntapac copes with seasonal peaks by clever timing of the arrival and departure of its trucks. “All our vehicles are leased, and we took in the last new vehicles on 1 December,” says Hunter. “Rather than just doing a straight threeyear deal, we do 36 months plus one. So, in theory, the new ones come on 1 December but the old ones don’t go until the end of December. We replace about a third of our fleet every year, so we get an extra 20 trucks over Christmas.” When it comes to trailers, Huntapac owns its 40 tandem-axle bulk tippers, keeping them for between 10 and 15 years, but leases its 60 Gray & Adams fridges over seven years from Dawsongroup. The trucks come with full R&M, while Huntapac maintains the trailers – apart from the fridge units – itself. Its December 2017 intake of 22 trucks included the usual mix of Scania (its first of the Next Generation R-series since the launch in 2016) and Volvo with a sprinkling of MAN and, for the first time in 20 years, five 476hp Mercedes-Benz Actros 2548s 6x2 units with flat-floored BigSpace cabs, supplied by Ciceley Commercials with funding by Close Brothers. Fitted with Predictive Powertrain Control, they are delivering outstanding fuel economy. “These were the first Mercs we’ve had since 9.4.18

MTR_090418_022-023.indd 23

we started leasing,” says Hunter. “We’ve had them for just over six weeks now and they seem to be very good on fuel from what we’ve seen initially. We are seeing more than 10mpg but it’s early days.” Huntapac has a detailed spec for its 6x2 pusher axle units, including a power range of 450hp to 480hp, tipping gear, sliding fifth wheel, single bunk, power mode on the engine ECU disabled and Hunter’s favourite Ducati Rosso Anniversario custom red paint job. The company has also started specifying cameras looking forward, backward and into the nearside blind spot.

“Probably 80% or 90% of drivers are roamers so they’re doing nights out,” says Hunter. “Some trucks do get double-shifted, while some will just do day runs.” Despite the belief that few drivers are prepared to night out these days, Hunter says the company has no problem recruiting. “Two years ago we probably had the lowest number of drivers,” he says. “But for the past probably six or eight weeks we’ve used hardly any agency drivers and we’re fully staffed.” ■

Not fussy

Every truck must be suitable for hauling fridge or bulk trailers, as the units can be called upon to do any job at any time. Hunter is not sentimental about his choice of truck, and vehicles are selected after a rigorous tender. “We get all the prices in and then we just take what feels right,” he says. “Every year we have to send the message out that it’s about price. Volvo was the lowest on price, Scania is expensive but we know they are reliable and the Merc demo we had was the best on fuel.” The bunks are not just there to boost residual values, as most of Huntapac’s 130 drivers will do nights out. MotorTransport 23

03/04/2018 11:14:18


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05/04/2018 09:44:20


Careers

motortransport.co.uk

Sharratt joins Whistl as operations director By Emma Shone

Whistl has appointed a new operations director, who becomes the third woman to join the parcel carrier’s executive board. Fabiola Sharratt joins the mail operator from online health and beauty retailer The HUT, where she was group operations director. Sharratt has held other roles in logistics including jobs with the GUS Group and the Caudwell Group. During her time at The HUT, Sharratt also designed the business’s employee engagement strategy, improving its communications and business performance. Whistl CEO Nick Wells said: “Our operations are the backbone of our business, enabling us to provide our customers with a high-quality, efficient and low-cost service. “It is important we hire the best people who can lead a team to deliver for our customers and Fabiola has those qualities, as well as an impressive track record. We are a growing company and her operational experience will help support our plans.

“Whistl hires the best people to do the job but I am pleased to say that Fabiola is also the third woman to join our [eight-strong] executive board.” Last year Whistl’s profit leaped 145% in the first full year after its separation from Post NL.

Staffing Matters By David Coombes

Should we be worried about the levy?

It’s nearly a year since one of the biggest taxation changes in a generation (the apprenticeship levy). The levy is set to raise £2.5bn in England, helping to fund the government’s target of 3 million apprenticeships in this current term of office, which was strongly reiterated by skills minster Anne Milton at a conference I attended last month. It has been a very slow start. Depending on what you read or hear, the number of apprenticeships in England more than halved in 2017. Should we be worried? Is this just another stealth tax that ultimately fails to deliver what it was designed to do? It certainly is a generational reform that is still to prove that it is up to the job. From a logistics perspective I am personally feeling upbeat. I have spoken to many employers and training providers over the past 12 months and in almost all the discussions they see the new apprenticeship standards playing a pivotal role in up-skilling their existing workforce, as well as introducing new people to their businesses. While there are still only four logistics standards to choose from, I am particularly excited about the imminent approval of the degree-level supply chain professional level 6 apprenticeship programme. This is exactly what our profession needs in order to offer an alternative to university and attract a new generation of future skills. In my opinion the new standards are of a much higher quality than the old frameworks as apprentices must undertake an independent end-point assessment of the knowledge, skills and behaviours that have been learnt. Tel: 0117 9859 119 logisticsjobshop.co.uk admin@logistics jobshop.co.uk @LJSJobs

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