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Networks angered by expected HSE decision to not limit tail-lift pallet delivery weights

Weight review ‘a fudge’

MOTOR TRANSPORT AWARDS 2018 ENTRY DEADLINE 2 MARCH 2018

By Carol Millett

NEWS INSIDE

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An expected decision by the Health and Safety Executive to not limit the weight of taillift pallet deliveries has been met with anger by pallet networks, with Pall-Ex group MD Kevin Buchanan describing the result as the “biggest fudge under the sun”.

The outcome of the threeyear HSE review, prompted by rising driver injuries and deaths from tail-lift delivery accidents, is understood to include no limit on pallet weights and a requirement that drivers make a risk assessment of each tail-lift delivery at point of delivery.

The recommendations have been passed to the pallet weight working group, which will put together draft guidance for industry consultation later this year.

Buchanan criticised the recommendations and called

01/02/2018 12:03

Poor treatment

MEP slams UK Mail’s “unacceptable” pay cut

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Electric dreams

European companies pre-order the Tesla Semi p6

Business as usual ARR Craib takes over McCaul Haulage

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OPERATORS IN THIS ISSUE Abbey Logistics ..................................p16 ARR Craib .............................................p8 Bibby Distribution................................p20 Brakes .................................................p4 Breytner ...............................................p6 CitySprint .............................................p4 DHL ......................................................p6

for mandatory regulations to limit pallet weights. He told MT: “The onus of responsibility has been pushed on to the driver. The HSE is saying ‘over to you hauliers, you sort it out’, and that is just not good enough. Much more needs to be done, and that includes reducing pallet weights.”

He added: “It is really sad, because people are dying. If this is all the HSE can come

up with after three years, then it is massively disappointing.”

Palletforce CEO Michael Conroy also criticised the lack of pallet weight limits in the HSE recommendations. “To have no guidance from the HSE on such an important, sector-wide issue is very disappointing,” he said.

An HSE spokeswoman told MT the review had found that setting a pallet weight limit

would “have the effect of preventing a large proportion of potentially safe hand pallet movements and would severely affect the industry with little or no safety benefit”.

She said: “It is the responsibility of those in control of transport operations to ensure the suitable assessment and management of health and safety risks to their employees and others.

“The guidance the working group develops will support the industry in doing this with respect to delivery of pallets.

Drivers do have a role but all of the responsibility for safe delivery is not with them.”

RHA technical services advisor Ray Engley, who chairs the pallet weight industry working group, told MT: “This remains a work in progress. I cannot comment on what individual operators within the pallet industry believe or are stating.”

DPD .....................................................p4 Fraikin ...............................................p3,6 Girteka Logistics ...................................p6 John Lewis Partnership .........................p4 McCaul Haulage ...................................p8 Martin Brower ......................................p4 O’Donovan Waste Disposal ...................p4 Tuffnells ...............................................p8 UK Mail ................................................p3

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Focus:

Bedworth Haulage sold for just £17,000 Bedworth Haulage was sold for less than £17,000 in a prepack deal that saved 21 jobs, after it went into administration last month.

In a report to creditors outlining why the Warwickshire temperature-controlled haulier failed in January after hitting a turnover of £10.5m in 2015, administrator Quantuma said the firm suffered “squeezed margins” warehousing

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Interview:

due to fleet costs and unprofitable work.

In 2015, a continental company Bedworth worked with removed a minimum guarantee for miles per vehicle per week from its agreement, resulting in Bedworth suffering a shortfall. In addition, an insurance dispute with this customer, increased competition, and uncertainty concerning the EU referendum hit John

Fletcher

of

sales and it fell into arrears with creditors.

A CVA was approved in February 2017, but it struggled to keep up with its obligations and entered administration on 25 January. The administrator said an immediate sale of the company “achieved the best available outcome for creditors”. C4-Safety bought the goodwill, equipment and business records for £16,794.

Dawsonrentals

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Think

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Telematics

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15/02/2018 16:04:50

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15/02/2018 11:01:33

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No cab stickers for earned recognition operators Earned recognition participants will not be allowed to display their membership on their vehicles, but founding participant Fraikin is confident that members will still experience a reduction in roadside checks, which will boost vehicle uptime.

DVSA enforcement manager Dave Wood said: “Feedback from operators was that they don’t want stickers on vehicles. The DVSA will recognise them through the number plate, because that’s linked through to the O-licence on our systems.

“There is a lot of fraudulent use of cab stickers and if we see any earned recognition

marks stuck on the cab, we will pull it in.”

Fraikin, the first contracthire operator to participate in the scheme, believes membership will improve vehicle uptime for operators. The company has worked with the DVSA over the past 12 months developing the scheme.

David Archer, head of risk and data at Fraikin, said: “The earned recognition scheme has the potential to deliver genuine improvements in vehicle uptime for our customers where we manage their vehicles on our O-licence, as it will reduce the likelihood of them being stopped roadside for inspection.”

MEP says firm is ‘flying in the face of ethical reponsibility’

UK Mail slammed for driver pay cut

By Carol Millett

UK Mail has come under fire

by MEP for the North East region Jude Kirton-Darling over claims the business forced drivers to take a pay cut and dismissed 20 drivers who refused to sign the new contract.

In a letter to UK Mail CEO Peter Fuller last week, KirtonDarling accused the company of “unacceptable treatment” of its workers and of “flying in the face of [its] ethical and corporate responsibility”.

The letter was prompted by a new contract UK Mail gave to its self-employed drivers last month, cutting their pay per drop. UK Mail said this was necessary for it to remain competitive after seeing significant volume increases from

parent group DHL, but that its drivers stood to earn more money than they had previously. However, union GMB argued drivers would be left with up to a £2,000 annual pay cut.

Kirton-Darling said: “With many workers finding it hard to make ends meet on the low – or no – pay rise of recent years, I am shocked to hear your company has tried to coerce workers into signing new terms of contract that would see their pay cut by around 4% – approximately £2,000 a year. I am further dismayed to hear that drivers who have refused to sign the company letter have been dismissed on the spot.”

Kirton-Darling urged the firm to meet with the trade

unions to resolve the dispute.

Mick Rix, GMB national officer, said UK Mail has yet to respond to requests for a meeting over the issues and warned that the company could face industrial action.

“I have never known drivers to be so angry and upset at a company,” he said. “They have had enough of the appalling treatment by the company executives and depot managers. Many are talking about the possibility of taking action.”

A UK Mail spokesman said: “While we are confident that due to the increase in volumes our couriers are carrying they will continue to see their average earnings increase. A small number of drivers have opted not to renew their contracts under the new terms.”

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15/02/2018 15:22:46

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DAF once again tops market share in 2017 with 29.5% of all sales between 6-tonne and 44-tonne GVW

HGV sales fall amid uncertainty

By Christopher Walton

Registrations of new HGVs fell 2.6% in 2017, with rigids bearing the brunt of the drop while the artic market remained stable, leading to the SMMT to call for “business certainty” from the government amid “declining operator confidence”.

Overall, new registrations stood at 45,045 units for 2017, down from 46,231 in 2016. The final quarter of the year was down 9.5% year-on-year to 12,271 units, compared with 13,555 in Q4 2016.

Rigid sales particularly suffered in 2017, with the overall market down 5%, from 26,882 units to 25,535 units.

Rigids above 16-tonne GVW saw the worst fall, down 6.7% from 17,012 to 15,875 units.

Rigids between 6-tonne and 16-tonne GVW, which includes some heavy vans, fell 2.1% year-on-year to 9,660.

Looking at registrations as a whole, rigids accounted for 56.7% of all unit sales, with artics responsible for 43.3%.

The only market to increase in 2017 was 3-axle artics, up 2.2% to 17,362 units in 2017, beating 2016’s total of 16,982.

This offset the 9.1% fall in 2-axle artics, traditionally a more niche product for inter-

Sign up for LoCITY Fuels in Action Interested in alternative fuels?

Make sure you register to attend the LoCITY Fuels in Action event taking place on 20 March at Kempton Park Racecourse, Sunbury-onThames.

Freight operators such as John Lewis, O’Donovan Waste Disposal, CitySprint, Brakes and Martin Brower will be taking part to share their experience with a range of fuels and technology.

TfL and Innovate UK will also explain their ultra-lowemission vehicle plans for the capital and a series of national trials taking place.

■ The event is free to attend, but visitors must register at: locityroadshows.co.uk.

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national operators, which was down 9.1% to 2,148 units.

Overall artic sales rose 0.8% to 19,510 in 2017, compared with 19,356 in 2016. The rise came despite a 7.5% drop in 3-axle artic sales in the final quarter of the year.

SMMT chief executive Mike Hawes said: “Following two years of robust growth and the long cycles involved in HGV fleet renewal, it’s no surprise to see deliveries fall in 2017.

“However, declining operator confidence is also starting to take its toll on demand. To avoid long-term disruption, government must address

economic and political concerns and restore the business certainty needed for this important market to prosper.”

DAF once again topped market share for the year with 29.5% of all sales between

6-tonne and 44-tonne GVW. In terms of units, it registered 13,301, down 4.4% compared with 2016’s 13,911 units.

Mercedes-Benz came second, with a 16.9% share seeing it register 7,631 units,

NEW TRUCK REGISTRATIONS 2017 * Marque DAF Mercedes-Benz Scania Volvo Iveco MAN Renault Isuzu Dennis Mitsubishi Other Hino Total HGVs

2017 13,301 7,631 6,990 5,819 3,475 3,355 2,065 829 760 754 60 6 45,045

Market share (%) 29.5 16.9 15.5 12.9 7.7 7.4 4.6 1.8 1.7 1.7 0.1 –

2016

Market share Change (%) (%) 13,911 30.1 -4.4 7,004 12.8 9.0 7,468 16.8 -6.4 5,732 12.6 1.5 3,542 7.8 -1.9 4,074 9.3 -17.6 2,132 4.8 -3.1 906 2.0 -8.5 634 1.5 19.9 742 1.6 1.6 77 0.2 -22.1 9 – -33.3 46,231 -2.6

*6-tonne GVW and above

Source: SMMT

up 9% year-on-year. Scania took third place with 15.5%, a strong performance considering its range only starts at 16-tonne GVW. Its overall unit registrations fell 6.4% year-onyear to 6,990.

Volvo came fourth, seeing a 1.5% year-on-year rise with 5,819 units. It took 12.9% of the market.

Iveco finished the year holding on to fifth in market share (7.7%: 3,475 units), no doubt benefiting from a muchhinted growth in registrations of its 7-tonne and 7.2-tonne Daily offering. Overall, Iveco sales only fell 1.9% year-onyear. MAN came sixth with 3,355 units registered and a 7.5% share, but saw year-onyear sales drop 17.6%.

Perennially seventh in the rankings, Renault stayed steady with 2,065 units registered and a 4.6% market share.

DPD to launch consultation on working conditions DPD is to launch a consultation on its employment and working condition arrangements across its network of drivers and depots.

The carrier came under fire last week after The Guardian reported it had fined a diabetic driver for missing his round when he had been attending a medical appointment. He later died of the disease.

DPD said it had, incorrectly, issued the fine to Don Lane, who had worked at the business for 19 years, but that it had been a mistake for which it was “profoundly sorry”.

DPD CEO Dwain McDonald said: “No one should ever be made to feel like they are unable to attend appointments relating to their health. Like all companies, we need to

learn from our mistakes. As a result, we are carrying out an extensive consultation with our depots and drivers as part of a strategic review of our arrangements. When we have completed the consultation and collected the feedback, we will be making further announcements.”

McDonald added that he would ensure no more employees were charged for attending healthcare appointments.

The Guardian’s report from 5 February suggests that before he died, Lane had missed medical appointments to avoid further fines.

The news came in the same week as the government announced that casual work-

ers would be given new basic workplace rights. In line with recommendations from the Taylor Review of Modern Working Practices, part-time, agency and flexible staff will receive rights including holiday and sick pay; payslips; and the right to request a more stable contract.

However, the Trades Union Congress (TUC) criticised the government for doing too little and for failing to protect the victims of “sham self-employment”. General secretary Frances O’Grady said: “The government has taken a baby step when it needed to take a giant leap. These plans won’t stop the hire-and-fire culture of zero-hours contracts or sham self-employment.”

19.2.18

15/02/2018 14:22:53

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15/02/2018 11:03:20

News extra

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European companies keen to be frontrunners in zero-emission transport pre-order the electric Tesla Semi

Tesla’s European ambitions

By Hayley Pink

If Elon Musk can send a car into space on reusable rocket boosters, then surely a down-to-earth electric truck travelling 500 miles on a single charge isn’t beyond the capabilities of today’s engineers?

Some industry sceptics have questioned the Tesla Semi’s commercial viability in becoming a mainstream contender in the heavy truck sector.

However, it appears that increasing numbers of well-known retailers and logistics firms are willing to give the new technology a whirl on their fleets.

MT’s online tally of social media news from the likes of Walmart, Pepsico, UPS and DHL shows an easy 450-plus units already on pre-order from Tesla, while some online sources believe this figure could even top the 1,200 mark.

Founders Series

The truck can be reserved for £15,000, with final costs expected to be £110,000 for a 300-mile-range truck, £140,000 for a 500-mile-range semi, and £150,000 for the top-spec Founders Series range.

While the US version has been given a 2019 production date, Tesla told MT it was not able to confirm a European launch date at this stage.

However, it has opened up its order book to three European countries – Norway, the Netherlands and the UK – although Tesla would not disclose to MT how many pre-orders had been taken from across Europe.

One of the first companies in Europe to reveal its interest in the Tesla Semi was Dutch zero-emission operator 6 MotorTransport MTR_190218_006.indd 6

Breytner, which announced its intention to order one unit in November.

The logistics firm already runs a fleet of all-electric trucks in major Netherlands cities and is testing a 27-tonne rigid hydrogen-fuelled lorry as part of a European trial. “We want to be a frontrunner in zero-emission transport,” said MD Marie-José Baartmans on the company’s website, “and Tesla has the same ambition.”

He added that the Tesla Semi would be a disruptive influence in the European market, due to its “progressive technology” and pricing. “With the current price level, Tesla sets the benchmark for other OEMs. This makes a competitive total cost of ownership much more realistic,” he said.

Lithuanian firm Girteka Logistics has also publicly announced an order for its pan-European logistics operation.

“Girteka Logistics wants to be the greenest transportation company available, and electric trucks are the future,” said CEO Edvardas Liachovicius.

Meanwhile, in Norway postal firm Posten Norge is looking to trial a unit, while wholesaler Asko is reported to have ordered a batch of 10.

Battery technology

While MT is yet to hear of a confirmed order from a UK operator, the Tesla Semi is most certainly on the radar of many. Bibby Distribution said it is “absolutely watching” the progression of Musk’s creation. “It’s the way technology is heading,” said head of fleet and procurement Adam Purshall.

“We’re seeing it in the car market, in terms of the rise in hybrids and fully

electric cars. As the battery technology improves, it will follow in the commercial world as well.

“The battery technology and the ranges that will be required are probably five to 10 years away. But what’s good about the Tesla is that it’s the start of electric trucks becoming commercially viable and signals a big change in the industry.”

He added that Bibby Distribution is keen to be at the forefront of trialling new technology, acknowledging the fact that early adopters will have to cope with operational teething issues.

“It’s about understanding costs and knowing when electric trucks are going to become commercially available and in what quantities. That’s a bit of an unknown at the moment,” said Purshall.

“It has launched the Tesla with lots of fanfare but there are no details behind it in terms of operating costs.

It’s a wait-and-see.”

Key player

Rental firm Fraikin UK told MT the company is positioning itself as a key player in the alternative fuels market and is monitoring closely the development of fully electric heavy trucks.

Head of procurement Ben Jones said: “In terms of Tesla, it’s interesting to see how it perceives the industry and the direction in which it thinks it will move. Despite the scepticism within the industry as to whether it will achieve successful mass production of its prototype within the promised timescales, Tesla has to be recognised and respected for how it is accelerating

change in the sector and making the other OEMs take notice and consider their approach. This can only be a good thing for customers in the long run.”

Fraikin believes that if the signs are positive and Tesla goes into mass production, the electric truck could be a serious consideration. However, in the short term, the focus is more likely to be centred around natural gas or hybrid solutions, with all-electric lighter trucks used for urban operations.

Order books

DHL meanwhile, having already announced an order of 10 Tesla Semis for its US same-day operation, is keen to watch how the technology develops for the UK market. A spokesman told MT: “In March 2017, Deutsche Post DHL Group announced its commitment to reduce all logistics-related emissions to net zero by 2050. Zeroemission technologies represent an important pillar for our future fleet development and we welcome innovations such as the Tesla Semi.

“As with any new technology, we will undertake trials in real-life applications and, based on the results, will then consider wider roll-out.”

Regarding the wider adoption of electric trucks for its UK fleet, DHL said it first used these more than a decade ago in 2007, and has since gained “a great deal of experience”.

The spokesman added: “Until now, limited battery range has prevented their use on a wider scale, but recent advances mean these barriers may soon be overcome and we look forward to the results of the [Tesla] trial.”

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15/02/2018 11:05:20

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Palletline member takes over employees, assets and trade of Aberdeen-based haulier as owner retires

ARR Craib absorbs McCaul

By Chris Druce

Palletline member ARR Craib has purchased fellow Scottish haulage firm McCaul Haulage for an undisclosed sum.

The employees, trading assets and trade of Aberdeenbased McCaul Haulage transferred to ARR Craib on 9 February, aiding the retirement of owner Tim McCaul.

Established in the 1970s, McCaul is known as an abnormal load specialist.

The deal includes 14 trucks and 19 curtainsider and flatbed trailers.

ARR Craib said the majority of the staff would move to its Dyce depot, which already employs 430 across its four

locations nationwide. It added that there have been no redundancies.

Eddie Anderson, CEO of ARR Craib, said the deal was

an opportunity to carry on the legacy of a company that has been a driving force for the haulage industry in the north east of Scotland.

He added: “McCaul Haulage has a first-class reputation amongst its diverse client group for its high standards of service delivery.

“When we learned that Mr McCaul planned to retire from the business, we recognised it as an exceptional opportunity to provide continuity for the staff and customers.

“Both ARR Craib and McCaul Haulage have operated in similar sectors and have been a part of the region’s haulage industry for many years. This will enable us to ensure a seamless transition of staff, assets and contracts, and we give an assurance to McCaul Haulage clients that we will continue to deliver the high standards of customer service that they have become accustomed to over many years.”

Grayling: Haulage Permits Bill is just a back-up plan Post-Brexit fines could fill a lot of holes

Write to: Motor Transport, Road Transport Media, 6th floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB. Email: chris.druce@roadtransport.com. Please include your full name, position, address and contact details. Letters published may also appear on our website: motortransport.co.uk. Motor Transport reserves the right to edit letters.

The new government bill making provisions for a no-deal trade arrangement when the UK leaves the EU next year is merely a contingency plan, with plans for a trade agreement still firmly on the table, transport secretary Chris Grayling has assured the industry.

The government released its Haulage Permits and Trailer Registration Bill earlier this month, which gives it the power to put a permit scheme in place, which could be necessary to facilitate cross-border trade after Brexit.

But while it puts the legal framework in place, Grayling assured operators that reaching an agreement was still the government’s intention.

He said: “Our road haulage industry is right at the heart of the £110bn of trade that takes place between the UK and EU every year.

“We believe reaching an agreement to continue the liberal access enjoyed by both sides is in everyone’s interests and remain confident we will do so. But I also understand that hauliers are planning for the years ahead and want to 8 MotorTransport MTR_190218_008.indd 8

have certainty that any future deal can be implemented smoothly – so this bill ensures we have plans in place if the deal requires a permitting system.”

The FTA said it supports the bill as a “sensible contingency measure”, but said it hoped it would never be used.

Deputy chief executive James Hookham said: “Any decision that will enable the frictionless movement of trade to continue between the UK and EU is to be welcomed, and the UK’s logistics industry needs reassurance that ‘business as normal’ can continue throughout the negotiations and transition period.”

RHA chief executive Richard Burnett said: “We need to see clear government commitment that it will seek an agreement that does not impose new permits, quotas or limits on UK international operators.

“The road freight industry needs clarity as soon as possible as regards to what is being negotiated.” n See motortransport.co.uk for our FTA Brexit webinar

Last week one of our vehicles was stopped on the A12 in Austria and fined on the spot €300 (£270) for not displaying a purple Euro-6 sticker in the windscreen. The vehicle was impounded until the fine was paid.

I don’t question we should have been displaying the sticker, it was an error on our part. However, the vehicle is registered with the Austrian GO Maut toll collection system and has been verified by the Austrian authorities as being a Euro-6 vehicle. We have never tried to evade paying the toll in any European country. Our trucks carry seven different toll boxes and vignettes to cover all of Europe.

We do not try to cheat.

The DVSA has stopped more than 3,000 vehicles, of which 293 were all fitted with an

illegal [emissions cheat] device and were allowed to carry on with their journey. We were fined €300 for not displaying a 40mm purple sticker.

Gareth Llewelyn [DVSA chief executive] says “we won’t hesitate to take action against these drivers/operators”.

The DVSA has caught people operating illegally and has let them go. Does anyone think Brexit will improve this situation? Let’s see what happens to the level of fines to UK operators once Brexit kicks in. If we use the above figures and levy the same fine as in Austria that would be nearly £90,000 in fines.

How many potholes would that fill in?

■ Mark Hailwood by email

Tuffnells moves into main DC in Sheffield Tuffnells has moved into a purpose-built main DC in Sheffield. The 20,000ft² site, built on four acres, has 51 loading bays and will be home to 139 employees.

The operator had inhabited its previous DC on Shepcote Lane for 50 years, and said it is pleased to have kept the business operating in its home town. It added the new site provides better, more flexible,

transport links and better accessibility for both employees and clients.

General manager of the DC Danny Hollingdrake said: “Since our move, we’ve already added two 7.5-tonne vehicles to our ranks, and plan to add up to five more HGVs to our fleet in the coming years.”

Group property and facilities manager James Church said the business is looking to

achieve greater efficiency out of its DCs this year through a combination of more new sites and upgrading existing ones.

“This move has topped off what has already been a massive year for the team at Tuffnells. The new centre is the first purpose-built facility constructed for the business in more than nine years and forms one of our 37 regional locations across the nation.”

19.2.18

15/02/2018 14:04:30

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15/02/2018 11:06:42

Focus: Warehousing

Fresh perspective

By Peter Ward

Perfect conditions Companies that provide a full range of logistics-based functions must ensure their conditions of contract cover all of the services that they offer.

Many companies in the warehousing and haulage sectors use the UKWA conditions as the basis for their standard terms and conditions.

They cover a broad range of services such as freight forwarding, haulage and, of course, warehousing, so that members don’t have to prepare different contracts relating to each distinct area of their business – one document is sufficient.

It is important that hauliers who are looking to add warehousing services to their service portfolio have some form of storage contract in place, as goods held in a warehouse face a much wider range of potential causes of damage than goods in transit.

Indeed, once in the warehouse, careless handling – whether manual or by forklift truck, damp, fire, pest or even the proximity of other goods that have the ability to contaminate products stored nearby, are all potential causes of product damage.

Very often hauliers, warehouse operators and freight forwarders quote more than one set of terms when dealing with customers.

They may, for example, have separate storage terms and haulage terms.

If a problem arises – say, a dropped pallet in the yard – it is sometimes not clear which set of conditions applies to that situation, and sometimes the legal position may be that none do.

By using UKWA’s conditions of contract, operators and their clients know exactly where they stand.

Use of the UKWA conditions is strictly restricted to UKWA member companies only.

Further information about UKWA’s conditions of contract can be found at ukwa.org.uk Gain industry insights at UKWA conference UKWA’s National Conference takes place on 7-8 March at the Casa Hotel in Chesterfield.

This national event is open to members and non-members and offers a superb opportunity to network with peers, hear industry leaders and gain insights into new business development opportunities.

Peter Ward is chief executive of the UK Warehousing Association. pward@ukwa.org.uk. ukwa.org.uk

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motortransport.co.uk

Lack of staff spikes interest in automation Warehouse staff shortages are fuelling interest in automation, artificial intelligence and robotics, according to warehousing industry experts.

Rob Fisher, event director of the IMHX 2019 show, said that the logistics industry can no longer rely on simply increasing the labour force to service new contracts.

“A combination of falling unemployment levels, minimum wage rises and, potentially, reduced access to migrant workers in the post-Brexit UK, has changed the cost equation. As a result, automation has stepped into the economic justification zone for more logistics operators,” he said.

Interest is also partly being driven by the shortage of land for warehousing. “Warehouse operators are looking to automated

solutions – particularly high-bay crane systems – to optimise the available footprint of their building,” he added.

Simon Lloyd, partner at property agent and advisor Cushman & Wakefield, agreed that there is increasing interest in warehouses using these technologies. “We are going to see a lot more of them in the next five to 10 years,” he predicted.

This could impact on the type of buildings needed. As well as requiring height, the payback period needed means that occupiers often want very modern buildings on long leases.

“The cost of equipment can easily outweigh the costs of the property. Ideally, you want a new building to put it in,” Lloyd added.

Brian Templar, chairman of logistics consultancy Davies &

Take-up activity bounces back The early part of 2018 has seen a number of significant deals, following a fall in take-up last year.

Kitchen supplier Howdens has agreed to take two build-to-suit distribution facilities of 657,000ft2 and 300,000ft2 at Warth Park, Northamptonshire (pictured), on 30-year leases. Construction of the warehouses, which are next to an existing Howdens facility, is due to be completed by winter 2019. The development is being funded to the value of £103.7m by logistics property investor Tritax Big Box. Tritax is also funding an £81.8m DC for Eddie Stobart at Midlands Logistics Park in Corby.

A target date of winter 2018 has been set for completion of the 844,000ft2 building, which is

being let on a 20-year lease.

Meanwhile, Amazon has announced plans for a fulfilment centre in Rugby, creating 400 jobs and will open further facilities in Bristol, Bolton and Coventry during 2018. This follows Lidl’s announcement that it is planning a 1 million ft2 warehouse near Dunstable, with construction due to start early next year.

Overall, Savills predicts that the number of deals close to completion could mean that Q1 2018 is a record quarter for take-up. This is despite a drop of 37% to 24.5 million ft2 in take-up during 2017.

Richard Sullivan, Savills’ national head of industrial and logistics, said: “We have already started to see an uptick in occupier activity this quarter.”

Robson, said that companies need to think carefully about which technologies to install.

In some cases, the use of sophisticated IT systems can reduce the overall need for warehouse staff.

“Artificial intelligence, for example, can analyse what people are good at and use them to the best of their abilities,” he said.

If they favour automated equipment, operators will then have to decide whether they need fully automated robotic picking or, if they have to cope with a variable product range and large seasonal spikes, a simpler, more flexible solution might be the use of conveyors or automated guided vehicles (AGVs).

“Because of the long payback, if your automation doesn’t fit the bill you’ve got a problem,” Templar said.

St Francis plans two speculative schemes St Francis Group, which specialises in brownfield development, has formed a joint venture with property group Richardson to construct 600,000ft2 of speculative space at two sites in the Midlands.

In Redditch, a 20-acre scheme called Velocity 42 will provide 330,000ft2 in a range of sizes from 39,000ft2 up to 141,000ft2. Work is expected to start in the summer with completion due during 2019.

In Kettering, a scheme called Cransley Park is being developed offering 270,000ft2 of space in units from 25,000ft2 to 100,000ft2.

Construction will begin this spring, with completion early in 2019.

Gareth Williams, St Francis’ development director, said: “We have invested in these sites to create development-ready opportunities that will deliver much-needed space into strong regional markets where the supply is limited.”

19.2.18

14/02/2018 14:38:01

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15/02/2018 11:08:42

Viewpoint

motortransport.co.uk

Opportunities and obstacles ahead T Dan Cook Operations director Europa Worldwide Group

he year ahead will be one of opportunity, but there will be obstacles too, including the driver shortage and rising costs.

Last year was Europa Worldwide Group’s most successful yet, with consignment growth running at 25% across the business. Our goal is to offer a structured direct service to every country in Europe, with multiple entry points in many cases, and we are fast approaching this benchmark. However, there are certainly some challenges at play, particularly the decrease in availability of skilled HGV drivers.

The UK haulage industry is currently facing a shortage of between 45,000 and 50,000 drivers, while across the continent the shortage is the same. The problem affects us in the UK, in employing our own drivers, via the third parties we contract for international haulage, and in the European marketplace for subcontractors.

There are not enough drivers in Europe for the traffic volumes available. This can only drive costs and consumer prices up. Customers tell us they can’t pay more, but in the end the pressures on cost are real and are not absorbable by the industry.

The uncertainly surrounding Brexit also makes the UK a less secure place for EU nationals to want to work – a workforce that is also crucial to our sector. At Europa, we want to see more young people considering logistics as a profession, be it as a driver, branch manager or operations specialist.

This is how, in the long run, we will tackle the shortage, combined with increased flexibility for drivers in where they want to be based and by investing in our driver facilities. We hope to see more investment across the board in training and apprenticeships.

In addition, managing rising costs, which are linked in part to the driver shortage and various pieces of European legislation, is a key challenge for Europa this year.

Our ethos is to offer the very best service at the very best price to all of our customers and we endeavour to maintain this standard even against a backdrop of rising costs. However, it is inevitable that at certain times market conditions will affect what we do and we must plan ahead as much as possible to anticipate these peaks and troughs.

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 Richard Bennett 07889 823060 Miranda Hall-Morley 07825 409551 Display telesales Barnaby Goodman-Smith 2128 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 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

Will driverless vehicles breed stupid drivers?

W Steve Hobson Editor Motor Transport

hile a lot of the hype about driverless vehicles has died down, the automated systems needed to achieve this aim continue to slip into everyday life. Automatic emergency braking, adaptive cruise control and lane departure warnings are no longer novelties.

While we still require drivers to be in control, these systems help drivers when they make a mistake and move us towards the ultimate goal of the zero accident vehicle.

But the marketing already worries me. I saw a VW car TV ad the other day where AEBS and side proximity sensors saved a bad driver – in this case a young man taking his nervous dad for a spin – from running over a pedestrian and being hit by an overtaking van. It reminded me of another TV ad many years ago for Volvo’s side impact protection system in which a smug middle-aged driver was T-boned by a van and calmly walked away, protected by steel bars and airbags.

What about the van driver? Did he have nine airbags too? What if it had been a motorcyclist

12 MotorTransport MTR_190218_012.indd 12

Mr Smug had pulled out on? The message seems to be if you are a useless driver who is going to have accidents buy a car that will look after you.

That could be the best argument for driverless vehicles and maybe that is the long-term thinking behind these ads. But while we have drivers in charge they must take full responsibility for their deadly weapons not just buy a vehicle that does the job for them.

Most human beings have a built-in risk balance, which means the safer they feel in their car the more risks they are prepared to take. So the more passive safety systems installed the faster people tend to drive, putting other road users at greater risk. I subscribe to the view that the best way to get to zero road accidents is to replace all the airbags and seatbelts with a 6in spike mounted on the steering wheel.

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 19.2.18

15/02/2018 12:13:43

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15/02/2018 11:10:23 22/01/2018 12:37

Interview: John Fletcher

Signs of the times

Dawsonrentals occupies a powerful position in UK truck and trailer rental. Andy Salter visits company HQ to find out how Truck & Trailer MD John Fletcher sees the future

J

ohn Fletcher is easy to interview: offer the odd question or comment to keep the conversation bubbling along, but otherwise sit back and fill your notebook. What’s more it’s sensible stuff because, along with many senior colleagues in the company, Fletcher has a wealth of experience in the commercial vehicle sector. He worked at both TLS and TIP before joining Dawsonrentals 17 years ago and since 2011 has been MD of the Truck & Trailer business.

As is customary on such occasions, we open with a “how’s business?” ice breaker and Fletcher is away. “We have our strongest forward order book for long-term rental for

a long time, the short-term rental sector, however, is a chaotic market,” he explains.

“All the pricing is mixed up, we’ve got wholesale rates being made available to the retail market. There’s a lot of talk about a PCP [personal contract purchase] bubble in the car market and I think the same is emerging in the commercial vehicle sector.

“There are strategies being put in place today by some players in the market for, potentially, short-term gain, which will have a huge impact on the market for the next 10 years. This is distorting the market.”

The Dawsons business model is based around three key ingredients, says Fletcher.

“We have to buy the asset for the right price;

operate the asset at a fair price for the end user and sell the asset at the right price at the end of contract. All three of those items have to come together in some sort of equilibrium for us to be able to satisfy our customers and, ultimately, our shareholders. We’re concerned this bubble is distorting the market.

“We will only buy vehicles we believe we can sell, so it’s essential we buy the right products at the right prices,” he continues.

“Like everyone we’ve made mistakes in the past, but we now have very clear thinking about the vehicles we acquire. We’ve shifted our buying profile, we’re less singular in the make and type of vehicles we buy. We’re now tending to go for higher horsepower vehicles, it makes them easier to sell in the second hand market.

“We have to focus on the back-end market for the vehicles at the front end of the buying cycle.”

Market analysis

It’s clear Fletcher and the team at Milton Keynes spend a lot of time analysing the used truck market and he has a number of interesting observations.

“Euro-6, for example, has no export market, not yet, so those products aren’t going on a boat any time soon,” he says. “That will change as the export markets catch up with the tighter emissions legislation of Europe, but currently we have to find a domestic market for those vehicles.

14 MotorTransport MTR_190218_014-015new.indd 14

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14/02/2018 15:45:27

motortransport.co.uk

features. (See our special safety supplement in MT 5 March) “We had been very weighted towards Mercedes in our vehicle selection,” he says.

“They have invested heavily in safety features and have a good reputation in the used market. The vehicles are well liked by the market. On total cost of ownership they score very highly and, obviously, this is a very important calculation for us. However, we also have good relationships with manufacturers like MAN, Scania, Iveco and DAF and look forward to future safety enhancements from them.”

The Brexit question

“Legislation, such as the ULEZ [Ultra Low Emissions Zone] in London and the clean air zones elsewhere will drive the market in that direction, so second-hand demand will emerge. But as a result, non-Euro-6 product in the domestic market will become increasingly challenged.

“If we look at the African market there are some very interesting economic developments at play. East Africa for example (Kenya, Uganda etc) have become very difficult markets for Europeans to operate in. Over the past five to 10 years, the Chinese have invested heavily in those economies and are benefiting from duty concessions on their products. We’ve seen a continuing hike on import duty for European importers in a lot of those countries.

Chinese competition

“We now have a situation where an operator can get a new Chinese 6x2 tractor unit for $32,000 (£23,200), which is roughly what we’ll be looking for on a five-year-old Mercedes Actros. If the man can get new Chinese trucks for the same price as secondhand European ones, why wouldn’t he?

“If we look a bit closer to home the Eastern Europe used market still offers an outlet,” continues Fletcher, “but this has been affected by a number of market changes: the Mercedes Axor was a good product for those countries as we were able to convert to left-hand drive relatively easily, though they have now stopped making it, which 19.2.18

MTR_190218_014-015new.indd 15

has closed that option off.

“On the other hand, the value of sterling has given us some advantage in the European export markets.”

Moving on from the market analysis, Fletcher turns his attention to the business offering. While there are some simple business rules at the core of the Dawsons offer, as Fletcher explains, the company continues to evolve its offering to the road freight transport sector.

“We’re not just rental,” he says. “We have an approach which takes in contract hire, leasing, traditional finance and fleet management. We’re everything to do with the ownership and operational model. Our model is based on usage. You tell us what you need and we’ll find good answers.

“For us the operation of the vehicle is allimportant. We are genuinely concerned about mis-operation as we want to protect customers and other road users as well as our assets.

We’re spending a lot on active and passive safety features on our vehicles, for example, and for those users who want greater assurance, we have developed a safety pack for our vehicles. For an extra £2,500 we can enable features such as autonomous braking, air bag and close proximity sensors. We are looking to improve the safety of our assets and give our users peace of mind.”

Vehicle safety has become a key priority for the company, and Fletcher confirms that the choice of manufacturer is increasingly being driven by the availability of safety

We can’t let an interview pass by these days without some recourse to Brexit and, as you’d expect, Fletcher has some thoughts to share.

“It’s hard not to see that there are clouds on the horizon as we go through the process,” he says. “The default position across the industry has always been ‘if in doubt, do nowt’ and I think that’s what worries us all, in business, most.

“It’s very easy to create a case for not making any investments and adopt a waitand-see approach. That said, the UK economy is still strong and as a nation we still have a lot of credibility in the world.

“Furthermore, you can’t deliver goods without vehicles, so no matter where we are as an economy we are going to need to move things around and that will require trucks and trailers.

“Opportunities will emerge providing you stay close to your customers and we are continuing to invest in new product. We have an order for 400 rigid vehicles to be delivered in the spring, a mixture of Scania, MAN, Mercedes and Volvo equipped with bodywork from a mixture of Lawrence David, Solomon, Paneltex and PPS. This remains a strong market for us – value driven, building vehicles for our customers. We had 1,000 new vehicles in 2017 and I am already expecting to acquire approximately 600 vehicles overall in 2018.”

New talent

Like many in the transport and logistics sector Dawsons has its radar up on talent acquisition, ensuring the business is developing the right staff and skills for the future. Fletcher takes us through some of the thinking.

“This is a business critical area for us,” he says. “We must find ways to attract the right calibre of people to lead the business in the future.

“We attended a careers fair in Milton Keynes and got really good engagement, with over 200 leads from people wanting to come and work for with us. They probably hadn’t even heard of Dawsons before that event.

The people who want to work for us don’t know it yet.

“We have to show the right people we want them to join us. New graduates want and expect a career, they want to be developed and we have to ensure we match their expectations.

“We want them to join our industry. This sector is genuinely addictive, once you’re on it you can’t get off. We already have some real high flyers emerging, who will ensure this business is in good shape for the future.” n MotorTransport 15

14/02/2018 15:46:08

Think Logistics

It’s all about educ Think Logistics brings together a number of industry-run schemes, enabling the logistics sector to engage with young people from school to graduate level.

Hayley Pink reports

A

key theme of the recently expanded Think Logistics initiative, introduced to industry in a steering group meeting last month, is ‘stronger together’.

Born out of the workshop-themed programme aimed at school and college students created by Abbey Logistics MD Steve Granite, Think Logistics now streamlines a number of industry-run education schemes under one umbrella. It enables the logistics sector to engage with young people from school right through to graduate level, with a national approach delivering a consistent message about the benefits of a career in this industry.

Chairing the new Think Logistics, alongside Granite, is former senior traffic commissioner Beverley Bell, who is keen to combine her legal, road transport and education knowledge (through an active school governor role) to boost the attractiveness of logistics as a career of choice for young people.

Bell took the decision to lead the charge in helping plug the industry’s talent gap during her stint as president of the CILT in 2015/16.

“When I was president of CILT, each year the president has to speak and the theme I had was the skills and talent shortage in the industry and how can we plug that?” she tells MT. “Because I was senior TC, I was able to get the

THE BOARD ● Beverley

Bell, former senior TC (pictured) ● Steve Granite, MD, Abbey Logistics ● David Wells, chief executive, FTA ● Andy Kaye, chief executive, Bis Henderson and chairman, Novus Trust ● Kevin Richardson, chief executive, CILT 16 MotorTransport MTR_190218_016-017.indd 16

19.2.18

14/02/2018 15:31:02

motortransport.co.uk

GRADUATE TO WORKPLACE New Think Logistics partner Novus is a supply chain higher education initiative, running courses at Huddersfield University and Aston University. It provides a single package of education, training and experience, alongside a guaranteed graduate supply chain job in a major logistics firm to all students.

Well-known manufacturers, retailers and 3PLs have collaborated to ensure the educational materials are relevant to business needs. Students will undertake one of three different four-year sandwich honours degree courses in supply chain management. This is supplemented by regular contact with employers and practical, on-the-job experience.

Find out more at novus.uk.com.

Companies supporting the scheme include: Arla; Asos; Bis Henderson; Ceva Logistics; Clipper; Culina; Cummins; DHL; Heineken; Howdens; Hoyer; Kuehne + Nagel; Morrisons; Muller; Nestlé; PZ Cussons; Saint-Gobain; SIG; Travis Perkins; Uniserve; Wincanton; World Fuel Services; XPO Logistics; Yusen Logistics.

ucation key players together and say ‘we can just talk about it, or we can actually do something’.”

With Granite having taken the first crucial steps to help the logistics industry address its recruitment challenges, Bell wanted to harness this momentum and propel it across the whole sector. “I was using my powers of persuasion to ensure the major players took part (see box, facing page), and it was good that they were so enthusiastic about it. We are stronger as one voice, rather than the FTA doing one thing and CILT doing something else, for example.”

Invisibility of success

So, what can the logistics sector offer young people looking for a modern, fulfilling career path? According to Bell, it’s the exciting technology and innovation coming into the industry. “I call it the invisibility of success,” she explains. “Everybody takes for granted that their Amazon package will not only arrive when it says it will, but that you can follow it and track it. This becomes our expectation.

“The next thing that will happen is that an organisation will ask ‘what can we do better and faster for our customers?’ The logistics sector is always driven by the customer and how it can give them a better experience and I think we are very good at doing that.

“I think that our industry, whether drivers, planners, route planners, has invisible heroes making Britain work.”

Education is key to getting this message across to the next generation, believes Bell.

Young people need to know how they can contribute to this success and bring their new 19.2.18

MTR_190218_016-017.indd 17

ideas and creativity to the sector, as well as be assured they can have a worthwhile, diverse career. “It’s the ability to start in one place and end up somewhere completely different,” she says. “It’s about enthusing young people.

“If you surveyed people in this industry, more than 90% will say they love their job. We need to get this message across to people looking for an exciting career.”

The success of Think Logistics depends wholly on the willingness of logistics employers to lend their support to the many activities offered to young people. Support can come in different guises, such as offering a student a summer internship, running a workshop at a local school, mentoring an individual or group of students, or taking part with a stand at a local careers fair.

SCHOOLS ENGAGEMENT

Career Ready is a charity that links employers with schools and colleges and aims to give students from lower income families the confidence, skills and networks to achieve their potential.

Steve Granite (pictured) took his Think Logistics concept to Career Ready in 2015 and the two organisations have been working together to grow the initiative across the UK since then, even scooping the MT Partnership Award in 2016.

A total of 21 dedicated logistics academies have been opened through Career Ready, focused on geographical haulage hotspots, with more sites planned to open later this year.

These academies help to link local logistics employers with schools and colleges to deliver the Think Logistics workshops, mentoring and work experience Important links programmes.

Even if operators are able to commit only a Employer support for these centres is vital. However it small amount of time to the cause, it will all can be challenging in some areas to attract enough local help in creating those all-important links firms willing to provide staff to help engage with students. between industry and education.

Granite says: “The frustrating thing for us is that it’s not Trying to ensure those people who do deliver a lack of young people interested, as there is a huge guidance to young people are also engaging, audience. The schools and colleges need this resource. young and enthusiastic themselves would go It’s actually the employers who let the programme down, a long way to dispelling the myth of transport although I understand this isn’t unique to logistics.” and logistics being “male, pale and stale”, Ian Nichol, recently promoted to lead the expansion of believes Bell. logistics activities at Career Ready, adds: “It is challenging From an employer’s perspective, the benefits in all sectors to get employer involvement. However, if we can be realised for both small and large busiare serious about young people’s engagement, we have to nesses. “It’s attracting and creating a talent get employers alongside them – this is absolutely pipeline,” says Bell. “It’s good succession planessential.” ning and getting the right people to work in All of the centres would welcome more employers to your organisation instead of going to work for join the local advisory boards, which meet three or four a competitor, or even a competing sector.” times a year for 90 minutes. “They are the engine room In addition to creating a fresh new talent that makes the programme happen,” says Nichol. pool, other benefits can include: “Employers will meet with teachers and senior leaders ● risk-free and cost-effective management at the school/college, which brings the worlds of business development training – for example, courses and education together so that long-term partnerships on mentoring or presentation skills can be can be developed. It’s also a great networking opportunity arranged for staff via Think Logistics partners; to meet with other businesses.” ● corporate responsibility credentials – which He is also encouraging firms to step forward if they can help give a company an edge over comwould be able to offer a simple workplace visit, or even petitors; deliver a masterclass on employability skills or help ● an opportunity to ‘try before recruiting’ deliver a Think Logistics workshop. through work experience or internships, for Mentors are also required for Trafford College, example, to prevent hiring someone who Altrincham and South Cheshire College, Crewe. excelled at interview but is not up to the job; “Very importantly, all of the centres are desperate for ● the chance to bring in fresh ideas with young the industry to offer paid internships/work placements in people questioning the way you do things; summer 2018,” adds Nichol. ● raise the company profile by networking “It’s a great way for companies to talent spot for with other businesses who will be able to share apprenticeships, graduate programmes and jobs. industry intelligence and extra resources. ■ Otherwise there is the risk that young people don’t get Find out more about the range of activities experience of working in the industry and thus will not you can get involved in to help support have logistics on their career radar.”

Think Logistics at: think-logistics.co.uk.

More information on volunteering at: careerready.org.uk/ employers Career Ready supporters are: AO; Bright House; DAF Trucks; DHL Supply Chain; Eddie Stobart Logistics; FTA; Great Bear; Gwynned Shipping; Ligentia; Manpower; Mersey Travel; Microlise; National Logistics Academy; PD Ports; RHA; Royal Mail; Virgin Trains; Wincanton; XPO Logistics.

VALUABLE EXPERIENCE: Connor Burke from West Derby School enjoyed an internship with Abbey Logistics through Career Ready

MotorTransport 17

14/02/2018 15:31:34

asas

Telematics

motortransport.co.uk

Information overload Remember when telematics systems only showed where vehicles were? They do a lot more now. But how much information is too much, and how can you manage it? David Harris reports

T

he French first coined the term telematics. Two academics wrote a report in 1978 for president Valery Giscard D’Estaing highlighting the new science of “telematiques”, the word they invented to describe the increasing link between computerisation and telecommunications.

It was in the late 1990s, 20 years later, that British hauliers started getting to know telematics systems in their trucks. But telematics in the early days was much simpler than it is now – because its sole purpose was vehicle tracking.

This was useful as far as it went, but things have developed a lot since then. Fleet managers are now able to use telematics for more than just pinpointing their vehicles.

By the mid-2000s, transport managers were able to talk to drivers en route, giving them updated information on where to pick up or drop off, for example.

Images: Shutterstock

Watching you

Next came the ability to monitor driving, for both safety and cost. Telematics started to tell hauliers which of their drivers were driving economically and safely, and which of them might benefit from changing some habits. Big Brother fears began to be voiced, but it was clear that telematics could save operators money. That was the trump card.

Today things are far more precise. UPS, for instance, has a route-planning system that gets drivers to avoid making turns against traffic (right in the UK, left in right-hand drive coun-

18 MotorTransport MTR_190218_018-020.indd 18

tries). This saves time and reduces the likelihood of accidents. Again, saving money.

However, the amount of information that telematics systems can now provide can become an issue. Transport managers are busy people, so getting chapter and verse on the whereabouts and performance of their fleet and each driver is all very well, but will they have time to look at it? The issue has become not the quality of information, but how much of it there is.

Problem solved

The answer, according to telematics specialists, is to ensure systems are set up to provide operators with what they actually need.

Beverley Wise, TomTom sales director for UK and Ireland, says: “It’s true that the systems nowadays do give an awful lot of data. We customise each dashboard to the customer’s requirements. We also try to direct transport managers so they don’t have to look at the 80% of information they don’t need to, but do pay attention to the 20% that needs some action.”

Monitoring drivers is not straightforward.

Some can be too keen to get on with work, thereby running the risk of exceeding their hours; while others are the opposite, not driving enough and so reducing their efficiency.

Telematics can identify, and therefore help, solve both problems.

Wise says: “Most hauliers want to run their fleets as efficiently as possible, but everybody is concerned about minimising accidents and ensuring they are not breaking the law.”

Most telematics specialists now offer a

managed service that can regularly call each depot and call individual drivers as well as managers.

Too much information?

Rob Goldwater, fleet sales director of West Midlands-based telematics provider TrakM8, believes so. “It does make the mind boggle what the systems can do nowadays. A transport manager can log on and see thousands of reports. One of the things we do with companies is to find out exactly what they are looking for and personalise what we provide for them.

Whether they get daily, weekly or monthly quality reviews is down to them.”

For some customers – Scottish Power is one example – TrakM8 has monthly meetings with management to report on road safety and other issues. It might have a feel of Big Brother, but it also makes everything safer.

It is not just drivers that telematics can monitor; many systems now also cover vehicle systems. Temperature-controlled haulage is an obvious example. Telematics is capable of monitoring trailer temperatures, which has varying degrees of relevance depending on the load.

Refrigerated food needs to be kept chilled, but there are less obvious specialisms for which temperature is important. Musical instruments must be kept at an ambient temperature. Like wine, instruments are damaged by being too hot or too cold, and suffer most by sharp temperature fluctuations. If these are your loads, telematics can help you carry them more safely.

Telematics has come of age. ➜ 20 19.2.18

14/02/2018 17:00:24

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15/02/2018 11:11:40

Telematics

motortransport.co.uk

Collecting data from telematics could have far-reaching legal implications, says Kurt Rowe

Don’t forget about data protection

W

ith semi-automated truck platooning trials due on our motorways by the end of this year, and Tesla, Google, Uber and others planning to test fully autonomous trucks, you would be forgiven for thinking that tomorrow’s brave new world is upon us. But it could be 20 years before autonomous vehicles are a common sight on our roads, and technologies such as telematics, cameras and driver-assistance apps offer more immediate opportunities.

Neil Bowker, director of Bowker Group, says: “We see technology as key to achieving our success. Our approach has been to use technology to integrate our processes ensuring efficiency and compliance.”

Monitoring driver behaviour could prove useful in the event of an accident. However, this information could create liabilities for the operator if it shows no action has been taken to correct a pattern of adverse driver behaviour.

Miniclipper MD Peter Masters says: “Telematics has been fully embraced and has had a significant positive effect on not just our efficiency but also how we manage our drivers and run our business. We see technological developments as a journey, one that is dangerous to ignore.”

The digitally connected nature of these technologies also opens a myriad of data security considerations. Any employer must ensure it complies with the Data Protection Act 1998

THE OPERATOR VIEW

Peter Kelly, compliance and fleet manager at textile rental giant Elis Berendsen, says telematics is an essential pillar of efficient operation. The group operates 750 vehicles in the UK, including 500 18-tonners, operating from 46 depots. It has four divisions: hospitality; healthcare; workwear; and a specialised surgical instruments service.

Like many operators, the group previously used a combination of several telematics providers, but when Kelly joined 18 months ago he saw a benefit in unifying the systems.

TomTom was chosen as the one system to control everything and the benefits have been almost immediately apparent since it began last July. Kelly says the system cost approximately £1.5m to fit to the entire fleet and is on course to save the company £900,000 a year. Much of this is the result of improved fuel economy as a result of drivers being monitored and told when driving styles could be better.

While operators might think this degree of control could upset drivers, Kelly says it usually doesn’t. “I give an example of a driver who the system identified as not always doing what he should. He had some coaching. Four months later he said: ‘I always follow 20 MotorTransport MTR_190218_018-020.indd 20

(DPA). A Data Protection Bill has recently been introduced to parliament that will radically alter the data protection rules employers must adhere to. If an employer has installed telematics, then it could be argued that the employer owns any data recorded. But the vehicle drivers may be considered the owner of data gathered while they are driving. Employers should assert ownership of all vehicle and driver telematics data through inclusion of terms within the contract of employment.

Data security

However, it is likely that the data would still be classed as personal data, as defined by the DPA, and employers must ensure they have clear policies in place to comply with the provisions of the DPA in terms of gaining consent from drivers for the processing, utilisation, retention and destruction of that data.

The importance of data security cannot be underestimated. Fleet vehicles increasingly resemble computers on wheels and are susceptible to a deliberate or inadvertent cyber incident.

The information available from vehicles’ connected devices could be a valuable commodity in the hands of a competitor or other entity intent on creating mischief, and fleets must understand the dangers these connected systems pose to property and employees. ■ Kurt Rowe is an associate in the motor technology group at national law firm Weightmans.

the navigation unit, I don’t speed, I feel more comfortable driving, I set off at the same time and I get back to the depot at the same time’.”

Kelly is also a fan of the cameras in the TomTom system that the haulier has installed, which enables the firm to immediately reject false insurance claims that can be a curse to branded fleets. “A picture paints a thousand words, but a video paints a million,” he says.

Bibby head of fleet and procurement Adam Purshall believes one of the greatest advantages of the latest generation of telematics is that it has become more

SPY IN THE CAB Does telematics amount to a spy in the cab? Maybe, but it is not always an unwelcome one for drivers. All telematics firms say drivers are often grateful for in-cab cameras linked to telematics, for example if they prove that drivers are not at fault in accidents. Such systems have stopped many false claims in their tracks.

Beverley Wise, TomTom sales director for UK and Ireland, says: “We had a claim where a rear windscreen of a car was smashed and the driver said the lorry reversed into him. Our systems demonstrated otherwise because the lorry was parked at the time.”

It is not surprising that because of this ability to prove that liability does not rest with the haulier, telematics can have insurance implications. TrakM8 has recently launched an accident camera, which fleet sales director Rob Goldwater says: “Insurers love.” He adds that many drivers do too, mainly because it protects them if something happens that was not their fault. “It can be a real help with everyday information because it can show in real-time where a driver is faced with a big queue or an accident. It gives the transport manager real-time footage of where and when things are taking place.”

integrated into the entire fleet. He says: “Five years ago we had a number of systems; there was lots of complexity, a mixed fleet and different versions of different systems everywhere you looked. That was when we decided to sort out things and now Microlise covers the entire fleet. For me its great selling point is simplicity.”

This means that Bibby’s fleet, which covers the UK undertaking work as diverse as farm collections in the Scottish islands to servicing factories in Milton Keynes, uses the same telematics technology. Its 650 vehicles, from 7.5 tonnes to 44 tonnes, all come under the same telematics microscope.

Like other modern systems, it manages driver behaviour, as well as analysing their driving style and grade them on an A-E rating to encourage good practice. There is a driver debrief at the end of each shift and drivers can access an app and see their scores.

Purshall confirms that the drivers and the company take it very seriously.

Just as important, the drivers don’t seem to loathe it, rather they like the guidance it provides and enjoy the competition. Big Brother, it seems, isn’t the frightening figure he was cracked up to be.

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