Hot Topic: Sector Insight 2022

HOT TOPIC SECTOR INSIGHT

INTRODUCTION AND CONTENTS

Commercial Motor and Motor Transport’s latest Hot Topic report looks at what operators expect to see a ecting their businesses in the next 12 months. It includes eets of all sizes from across the country and covers a range of topical issues: from business investment plans to compliance schemes and the UK’s decarbonisation targets.

Respondents: we drill down into the details about our respondent base, exploring company turnover, eet size and type of operation 4-5 Challenges and con dence: nd out how operators fared during a full year’s post-lockdown trading environment and what they perceive key challenges to be for the year ahead 6-7 Investment/Truck sales: are operators con dent enough to invest in their businesses in 2023 and what key purchases do they plan to make?

Industry schemes: there are an increasing number of eet compliance initiatives. Are operators on-board or opting out?

Case study: Brigade Electronics

Direct Vision Standard: TfL’s agship scheme aims to enhance the safety of the capital’s busy roads. How have HGV operators found it so far?

12-14 Repair and maintenance/Tyres: we explore key investment areas for maintaining HGV eets and workshops, and take a look at tyre trends

Case study: Goodyear Total Mobility 16 Insurance: are operators doing their utmost to reduce insurance premiums?

Case study: Hazelton Mountford 18-20

Decarbonisation/Smart technology: with the UK government phasing out the sale of all new diesel trucks by 2040, we ask is the industry ready?

Case study: Hireco

Alternative fuels: we ask operators which alternative fuels are on their radar, and explore the barriers preventing them from trying them out on their eets

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is report is based on a survey of Commercial Motor and Motor Transport readers, where the majority (84%) of respondents were involved in purchasing decisions: 55% having direct purchasing responsibility and 29% having purchasing in uence.

Company owners, board directors or chief executives comprised 48% of respondents, while a further 18% were at senior management level and 15% at middle management level. Ownerdrivers represented 8% of respondents, with the remainder in roles such as administrative, engineering and junior management.

e average eet size for respondents in this survey was 104 vehicles, compared with 86 vehicles when the same survey was conducted in 2021. Just under one-third (31%) operated one to ve HGVs, and 7% of the largest operators surveyed ran 501-plus trucks.

One-in-six operators also ran vans on their eets, with an average of 44 vehicles: more than one-third (36%) of operators ran between one

and ve vans, with 2% of rms using more than 500 LCVs on their eets and the rest somewhere in-between.

Average annual turnover of those surveyed was £58.4m, up signi cantly on the average of £50.9m in 2021’s survey and likely representing the larger eet size reported this time around. 35% of those surveyed had a turnover of £2m or less, while one-quarter of respondents achieved between £2m and £10m turnover a year.

A further 13% reported between £11m and £50m, while 11% of respondents reported between £51m and £500m turnover.

When it came to type of operation, 46% of respondents described themselves as third-party logistics operators, while 32% were own-account operators. Some 13% described themselves as ‘other’ – including construction, heavy haulage, recovery and rental eets – with 7% municipal and waste and 2% public sector.

A total of 305 CM and MT readers took part in this year’s survey.

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CHALLENGES AND CONFIDENCE

Our Industry Insight research a year ago put the UK’s driver shortage at the top of the concerns facing operators for the year ahead, followed by the complications of increasing city regulations.

However, roll on 12 months and there is a very di erent picture: Russia’s invasion of Ukraine, the spiralling cost of goods and energy, a volatile economy and an unstable government have all rocked the UK logistics sector.

Challenges

Top of the list of challenges for our respondents heading into 2023 was the steeply rising price of gas and electricity. While the government has agreed to a short-term Energy Bill Relief Scheme for businesses to lower the cost of energy from 1 October to 31 March 2023, this o ers little

respite for a sector so heavily a ected by the price of diesel.

e second most concerning challenge on respondents’ minds for next year was the possibility of the UK falling into a recession, which is hardly surprising given the recent chain of disastrous Mini Budget announcements and nancial markets fallout.

e driver shortage continues, as always, to trouble hauliers, alongside the complexity and cost of city regulations. Covid-19 disruption appears to have dropped right down the list compared with 2019 and 2020’s results, re ecting the UK’s current approach to living with the virus.

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CHALLENGES AND CONFIDENCE

Confidence growth

When asked about how con dent operators felt about the trading position of their business for the year ahead, there was a signi cant drop, on average, compared with the same time a year ago.

On a scale of 0 to 10, with 10 meaning ‘we are very con dent and expecting strong growth’ and 0 meaning ‘very concerned about staying a oat during 2023’, the average score was 6.4 from our respondents. is compares with an average of 7.1 a year ago, perhaps re ecting the impact of spiralling costs on operating margins.

92%

of respondents said the biggest challenge for next year was energy costs

VIEWPOINT STEVE HOBSON, EDITOR, MOTOR TRANSPORT

Last year here we set out a long list of challenges facing the road transport industry: driver shortages; climate change and the need to decarbonise; long lead times on new trucks due to a shortage of computer chips; Brexit; a rapid shift in consumer shopping from stores to home delivery; and clean air and low-emission zones.

Could things get any worse? Well, Russia’s invasion of Ukraine and the resulting soaring energy costs plus Liz Truss’s disastrous 44 days in 10 Downing Street have certainly ramped up the turmoil facing the UK economy, which now looks almost certain to plunge into recession.

The driver and vehicle shortages seen in the past year have not gone away and operating costs show no sign of falling – and now the fear is that declining volumes will again put a squeeze on rates

as customers look to cut costs to survive. As a result, our operator confidence index has dropped to 6.4, down from 7.1 last year.

While operating margins will come under renewed pressure, it is heartening to see that a new table in our Top 100 league of the UK’s largest hauliers shows that return on investment is up to 12.6%, which is a lot better than leaving cash in the bank.

It is pretty certain that the trend towards consolidation of the industry will continue, with the big players such as Culina and GXO getting bigger and medium-sized players disappearing or getting swallowed up. The prospects for the smaller, often family-owned haulier remain bleak, a worry for everyone as these firms are the subcontract bedrock on which much of the industry depends.

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INVESTMENT

As our business con dence results revealed, operators are feeling a little less optimistic about their trading performance at the end of 2022 compared with the same period in 2021.

But, crucially, how will this translate into their spending plans for the next 12 months, and what will the key investments be?

Our research showed that 69% of respondents planned to invest in eet vehicles next year. Of these, just over a third (34%) would be obtaining new trucks for their business, 15% adding used trucks, while the remainder (20%) would opt for a mixture of second-hand and new.

e average number of vehicles operators planned to add to their eets next year stood at 17.9 units, which is signi cantly up on last year’s gure of 10.2. is could simpy be a re ection of the larger average eet size of the respondent base in this year’s survey.

However, it could be a sign that operators are now eager to refresh their eets having held on to them longer due to Covid-19 and supply chain disruption over the past couple of years.

More than half of operators (56%) planned to obtain between one and ve trucks next year, while at the top end of the scale, 7% of respondents were looking for major additions of more than 100 HGVs.

When it came to having the necessary funds for business investment, less than one-quarter (23%) of respondents de nitely planned to seek out additional nances, with 44% stating they did not need to borrow money and the rest unsure at this stage.

NEW TRUCK SALES

SOCIETY OF MOTOR MANUFACTURERS AND TRADERS

New UK HGV registrations surged by 30.1% in Q3 2022, according to the latest figures published in November by the Society of Motor Manufacturers and Traders (SMMT).

The largest Q3 increase in half a decade saw 10,034 units registered in the three months, revealing the best quarterly growth since Q3 2021 and pushing volumes up 17.3% on Q3 figures in 2019 pre-pandemic.

Almost nine in 10 new trucks (88.5%) were registered in England, which recorded the strongest growth, up 31.6%, while Wales saw the lowest increase, at 2.7%. In Scotland and Northern Ireland, the HGV market also rose, up 29.8% and 13.9% respectively.

USED TRUCK SALES

The strong Q3 performance saw the market overcome the weaker first half of the year, driving up overall year-to-date volumes by 7.8% to 29,404 units. The SMMT says this is despite continuing semi-conductor and raw materials shortages, which have shown signs of easing this quarter, with deliveries rising as the holiday season approaches. However, this is down -18.4% on Q3 year-to-date 2019 figures.

SMMT chief executive Mike Hawes says of the bumper registrations: “Large growth in the HGV market is welcome amid the myriad challenges facing the sector, and signs of supply chain issues finally beginning to ease deliver hope for a more positive 2023.”

GEORGE BARROW, DEPUTY EDITOR, COMMERCIAL MOTOR

Semi-conductors, raw material prices and the increasing cost of finance continued to plague the used truck market, which saw a tumultuous year. Statistics from commercialmotor.com showed that searches for all types of vehicles across the industry were broadly flat but there were significant peaks and troughs throughout the year. An increase in the number of listings led to a rise in searches in the early part of the year, but as summer approached the gains were quickly eroded.

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Tractor units remained the most constantly in demand vehicle but suffered the most from a lack of supply in the used market, while rigid vehicles were more consistent.

Tipper trucks continued to be popular but there was a decline in other construction-related equipment including cranes, which started earlier than the seasonal drop-off normally recorded at the end of the year.

INDUSTRY SCHEMES

Freight and logistics operators have seen a rise in the past decade in the number of schemes launched to boost safety, sustainability and eet compliance.

Some such initiatives, such as cities’ clean air zones and London’s Direct Vision Standard, are mandatory and operators can face he y nes for noncompliance.

Well-known schemes such as CLOCS, FORS and the DVSA’s Earned Recognition, meanwhile, are not compulsory for operators to engage with. However, operators that choose not to may nd themselves at a disadvantage against competitors that are on board when bidding for work, particularly if a customer has built compliance with their chosen scheme into its contractual requirements.

ere may also be operational bene ts to be found by engaging with schemes, as many require a ne-tuned focus on safety and e ciency, which can culminate in fewer vehicle

incidents, higher eet up-time and potentially lower fuel costs, for example.

is survey asked readers whether their customers had required them to join a particular scheme, with a roughly even split of those that had and had not been asked. Of those that had been mandated to join a scheme, just over one-third (34%) said FORS was required, with 17% being asked for compliance with the Earned Recognition initiative.

Industry associations’ own schemes increased from 7% in last year’s survey to 11% this year, followed closely by CLOCS at 10%. Newer schemes, such as SafeContractor, MP Connect and Mission Zero, also gained momentum.

is study asked whether the costs and complexity of joining a particular scheme may lead operators to exit a contract with a customer: 18% would leave a contract in these circumstances, with 58% considering this a possibility.

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Have customers asked respondents to join industry schemes?

Brigade

launches

CASE STUDY: BRIGADE

CAREYE® Safety Angle Turning Assistant

Brigade has launched an arti cially intelligent commercial vehicle safety system – CAREYE® Safety Angle Turning Assistant – across its UK, French, Polish and Dutch markets.

Deaths and serious injuries continue to be an issue for vulnerable road users, including pedestrians and cyclists, across the UK and Europe: 141 cyclists were killed in the UK due to road tra c collisions in 2020 with a further 229, 175 and 168 killed in the Netherlands, France and Poland respectively.

One in three of these fatalities could have been prevented with a sideguard assistant, such as CAREYE®. is makes such technology crucial in enhancing safety for every road user and helping to save lives.

CAREYE® Safety Angle Turning Assistant from Eyyes has been o ered by Brigade in Germany for more than a year. Its long-standing partner Geier & Söhne Transportgesellscha trialled the device, which uses arti cial intelligence (AI) technology to detect pedestrians, cyclists and objects, in one of its Mercedes-Benz Actros vehicles and was impressed with the product.

e system’s AI is set up to accurately evaluate the images from cameras tted to the vehicle and is able to calculate the future course of motion of nearby people or objects. Based on this data, the system reliably and accurately warns the driver in real time of a possible collision before it occurs.

Warnings are issued either actively with an audible and visual red alert if a person or object is at risk of being hit, or passively with a visual yellow alert if, for example, a person or object is moving away from the danger zone –

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dramatically reducing false alerts.

CAREYE® has also been rated as a clear winner in the ADAC performance tests, demonstrating its optimum performance and outranking similar vehicle safety devices on the market. ADAC cited CAREYE®’s reliability for reducing false alerts signi cantly, the visual feedback for drivers being clear and easy to understand, and its quick reaction times for detecting people and objects as reasons for its top place position.

e accuracy of CAREYE®’s AI makes false alerts extremely rare and provides drivers with peace of mind that they can manoeuvre their vehicle with the utmost safety. e system is able to di erentiate between cars, trucks, people, bicycles and static objects, such as trees or bollards. Movement and the expected direction are then calculated, making the system extremely reliable.

DIRECT VISION STANDARD

Last year saw the world’s rst Direct Vision Standard (DVS) come into force in London on 1 March. It requires all vehicles over 12-tonne GVW to hold a valid HGV safety permit to enter the capital, which can be applied for free of charge. TfL said in its rst year, more than 200,000 permits were issued.

To be granted a permit, HGVs must achieve a minimum DVS one-star rating or t additional safety equipment, which TfL calls a ‘Safe System’, to help detect vulnerable road users.

e star-rating system is based on how much a driver can see directly through their cab windows, from zero (lowest) to ve (highest).

Any hauliers driving into London in breach of DVS rules will face a penalty charge notice (PCN) of up to £550 (reducing to £275 if paid within 14 days).

Nearly half of those we surveyed were a ected by the introduction of DVS (48%), with 81% of those needing to invest in additional equipment to meet the scheme’s requirements. is might include additional cameras, audible warnings,

sensors and close-proximity mirrors to help improve a driver’s vision from inside their cab.

e average spend cited for our respondents to achieve initial DVS compliance was just over £15,000 (£14,769 in 2021’s survey). Our results showed that 24% of operators spent up to £5,000 to bring their eets up to the scheme’s standards, while a further 24% spent between £5,000 and £10,000. One-third of respondents reported spending more than £20,000 on equipment to meet requirements.

Scheme success

In the rst year of TfL’s DVS enforcement, the capital saw a reduction in fatal collisions where vision is cited as a contributing factor.

In 2021, there were 11 fatal collisions involving HGVs and people walking or cycling; of these, six fatal collisions occurred where vision was cited as a contributing factor. is compared with eight in 2020 and nine in 2019 where vision was cited as a contributing factor.

TfL said the majority (four of the six) of fatal collisions in 2021 involved zero-star-rated

DIRECT VISION STANDARD

vehicles, demonstrating the enhanced value of direct vision. e overall number of serious injuries involving HGVs in 2021 also went down, by 64%, since 2017, from 48 to 17.

e DVS scheme is set to tighten further in October 2024, with HGVs needing a minimum three-star rating to enter the capital, or be tted with a ‘Progressive Safe System’ that TfL said will take into account new and emerging technology or safety equipment that was not available during the design of the current system.

Our survey asked operators if they would need to make a further investment for the DVS update in 2024: just over one-third (35%) stated they would need to spend on new technology, while 38% said further investment was not needed and 13% did not know at this stage.

COMMENT

However, 14% of respondents said they were unaware that DVS rules would be changing in the next two years.

EMILY HARDY, UK MARKETING MANAGER, BRIGADE ELECTRONICS

“The Direct Vision Standard will change in October 2024 with the minimum star rating requirement increasing to three stars. The specifications for the progressive safe permit, required by all vehicles that do not meet the threestar rating, will also be changing and TfL will shortly be opening a consultation on the proposals.

Respondents have already spent, on average, £15,000 equipping fleets with safety devices. TfL must make the next stage of the Direct Vision Standard simple, understandable, cost effective and timely to support operators.

Interestingly, aside from compliance, respondents are fitting extra vehicle safety equipment to reduce insurance premiums. Too often, meeting safety requirements is seen as a cost, but many have appreciated the real cost-saving benefits and regard initial outlays as investments quickly recovered. A useful statistic would be the cost savings generated by fitting safety devices for compliance. The number of collisions prevented, insurance claims quashed, reduced damage to vehicles and lives saved will be much higher than the initial investment over the lifetime of a fleet.”

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Will you purchase additional equipment for tighter DVS regs?

REPAIR AND MAINTENANCE

When it comes to setting priorities for ongoing business investment, an e ective repair and maintenance (R&M) strategy will always be an important expenditure that eet operators must factor in to their annual spend.

Ensuring HGVs and trailers are fully utilised and not spending unnecessary time out of service for unplanned maintenance is vital.

A recent R&M survey carried out by Commercial Motor and Motor Transport revealed that two-thirds of operators now opt to outsource R&M – 35% to a main dealership and 31% to a third-party workshop – whereas 31% keep maintenance in-house, and the rest take a mixture of approaches.

A breakdown of key expenditure on operators’ R&M priorities is shown in the table below.

Top of the priority list is planned expenditure on the installation and updating of digital repair

and maintenance technology. Such systems have been increasing in popularity in workshops as they can give eet managers instant, realtime information about an HGV’s servicing status, and ensure eet compliance is managed e ciently.

e growth of industry schemes such as the DVSA’s Earned Recognition and other well-known compliance initiatives can also encourage operators to ditch the paper trail in favour of a digital approach.

Investment in recruiting and training skilled workshop sta ranked the next highest for respondents, perhaps re ecting the ongoing shortage of professional technicians the industry is experiencing.

And for those operators handling eet maintenance in-house, capital expenditure on large and small workshop equipment is also a major consideration each year.

of

oursource R&M –to either a main dealer or workshop

Adopting an e cient tyre strategy can pay dividends for any savvy HGV operator, no matter how large or small their eet is.

But with so much choice on the market, we decided to nd out what our readers were prioritising when it came to who looked a er eet tyres and the products they picked.

Just over one-in-six respondents said they preferred to pay-as-you-go when it came to replacing truck tyres, with approximately one-third (34%) opting for a tyre management contract to manage expenditure. e remainder mentioned alternative options, such as bulk buying tyres, as their chosen method.

However, larger operators, running more than 50 trucks, were far more likely to opt for the stability of a tyre management contract (56%)

to better manage expenditure rather than a buy-when-needed approach (44%).

When it came to what an operator was prepared to pay for specialist tyres, we explored opinions on some popular options, such as low-rollingresistance models and retreads. Our research revealed that half of respondents (50%) would be prepared to pay a slight premium for the bene ts of low rolling resistance tyres on their eet, with 8% prepared to pick such tyres regardless of any cost upli on standard options; and 42% would not pay extra.

When it came to retreadable tyres, 55% stated they would not be prepared to pay more for this option, compared with 39% who would pay a slight increase in cost and 6% who would pick retreads regardless of price di erence against standard tyres.

TYRES

Real-time tyre status can be an invaluable resource to eet managers, both from a vehicle safety perspective to driving cost e ciencies.

Ensuring the correct tyre pressure at all times can not only prevent unnecessary wear and tear and unexpected damage, but can also increase vehicle up-time and reduce fuel consumption.

Digital tyre-pressure-monitoring systems (TPMS) can be a useful tool for operators. Attaching these small monitors to each wheel can alert drivers and eet managers to any changes in pressure or temperature, enabling action to be taken before problems occur.

Just less than one-quarter of respondents already used such technology, with a further 18% looking to explore the option in the next year. However, more than half of respondents had no interest in TPMS at this time.

of fleet managers opted for a tyre management contract to manage costs

Barriers cited by those not tapping into the functions of TPMS included: uncertainty regarding the bene ts of the technology compared with installation costs; the downtime incurred while installing such systems on existing vehicles; and a lack of resources to manage the data once a system goes live.

COMMENT KATE NORTON, SALES GENERAL MANAGER COMMERCIAL, UK & IRELAND, GOODYEAR

“It’s positive to see that more than half of fleet managers surveyed would consider investing in low rolling resistance tyres as the long-term savings opportunities they bring can make a real impact on a fleet’s bottom line.

Low rolling resistance tyres can improve fuel efficiency, not only helping to save money, but also boosting a fleet’s sustainability credentials. With so many fleet managers aware of these benefits, it’s surprising to see that more than half (55%) of fleets are not considering investing in retreadable tyres, which also have long-term financial and sustainability benefits.

Vehicles’ tyres are the only part of the fleet that are connected to the road, so it is important to make the right tyre choice, bearing in mind cost, safety and efficiency. Just over a third (34%) of fleet managers opted for a tyre management contract to manage costs, but I always encourage operators to think about their tyre suppliers as long-term partners.

In a period of economic uncertainty for fleets of all sizes it may be daunting to sign a contract, but the long-term efficiencies made available through partnerships will help to cut costs in the long run.”

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Goodyear’s Total Mobility

Driving efficiency, sustainability, and a competitive edge.

Bringing all products, digital solutions, and fleet management services together into one hub via Goodyear’s FleetHub provides summarised reports and increases visibility of tyre management and maintenance requirements into one system, direct to laptops, mobile phones and tablets.

Goodyear’s Total Mobility drives integrated fleet management solutions that are customised to improve performance, increase competitiveness, optimise efficiency, achieve sustainability targets and advance customer satisfaction.

Goodyear’s Total Mobility combines tailor-made solutions that drive operational efficiency, reduce downtime, and lower costs, providing the ultimate portfolio of products and services. High performance tyres such as Goodyear’s FUELMAX ENDURANCE helps to lower emissions and reduce fuel costs with ultra-low rolling resistance and high levels of grip and traction. A good choice of tyre, combined with Goodyear’s services and digital solutions all add up to efficient operations, strengthened competitiveness and contribution towards sustainability goals.

At the start of each journey, Goodyear’s CheckPoint takes seconds to take essential measurements of tyre tread depth, tyre pressure, axle weight, and total vehicle weight. A groundmounted metal plate equipped with OCR cameras, the system matches data to the vehicle and delivers a time-stamped comprehensive report in real time.

Whilst on the road, Goodyear’s TPMS system monitors each tyre throughout the entire journey to ensure optimal tyre pressure is maintained, and any problems are identified to keep fleets on the road safely by collecting data, utilising predictive algorithms and sending early warning signs to both the driver and fleet operators. The system increases up time by providing 90% fewer tyre related issues, providing time savings and increases on the rate of on-time deliveries.

To find out more about Goodyear’s Total Mobility, please visit:

INSURANCE

Vehicle insurance is a necessity for all HGV operators, and will rank highly in terms of planned eet expenditure for 2023.

ere are measures operators can take, however, to keep premiums from rising and reduce them in some cases.

Approximately two-thirds (67%) of respondents said they had tted telematics and camera systems to help lower insurance costs, while others opted for increased security options such as safe overnight parking and security devices.

More than one-quarter (28%) revealed that only employing experienced drivers was a strategy they had adopted to speci cally lower insurance premiums.

When it came to insuring young drivers on an HGV eet, more than half of operators (53%) were not put o by the complexity or cost of doing so, perhaps re ecting the necessity of bringing the next generation of professional drivers into the industry.

For the largest operators running more than 50 trucks, this willingness rose to 65%.

COMMENT JAKE MOUNTFORD, DIRECTOR, HAZELTON MOUNTFORD

“It’s good that the research shows less businesses this year are deterred by insurance costs and terms when considering employing younger drivers. This demonstrates the driver shortage is still a big consideration for the industry and will continue to be for some time. Career opportunities in transport and driving are not presented at grass-roots level, which needs addressing as too many drivers enter the sector rather than choosing it as a career; even if this starts now it will still take a generation for the mindset on driving careers to be changed.

Also, the research shows that insurers are becoming less draconian with terms and premiums for younger drivers as they realise the need for a sensible insurance solution where drivers are in short supply.”

Have you taken measures to reduce insurance premiums?

CASE STUDY: HAZELTON MOUNTFORD

Reporting claims – which way is best?

Most of us know how vital it is to report motor claims to brokers or insurance companies as soon as possible. Speed can be paramount to the ease and defence of claims, but what is the best way to report a claim?

Hazelton Mountford, chartered insurance broker in Worcestershire, is an expert in insurance for the haulage and transport industry. Director Jake Mountford explains: “ e stats show that early reporting of motor claims results in reduced claims costs by signi cant sums.

“ e buzz word insurers like to use is FNOL – rst noti cation of loss – a driver may cause slight damage to the rear of a third party’s car, but if the insurer doesn’t see the claim quickly and deal directly with the third party, the costs can escalate massively.”

Drivers who have been involved in a collision with third parties will go to a local garage or their insurer if they are not contacted by the company’s insurer. ey could then be swamped with calls from accident management companies o ering services such as a lawyer or car hire – although neither may be necessary.

ese costs are then passed to the operator’s insurer at o en in ated rates. Early intervention by your insurer could reduce this possibility greatly and also mitigate against the potential for lawyers to unnecessarily contact drivers for injury claims.

“You can see why,

therefore, insurers are eager that claims are reported as early as possible,” says Mountford. “Most insurers believe the best practice for drivers is to report claims directly to their insurance rm as soon as possible as it’s the quickest way to get the information they need.”

Mountford notes that there is, however, a reluctance from many operators to ask drivers to do this. Reasons vary, but a common theme is trust. Companies may worry that their driver won’t say the right thing to the insurance company and could be concerned with their lack of control of the information passed on.

Hazelton Mountford suggests companies o er training sessions or workshops with their drivers that include instructions on how to correctly report claims in the event of an accident.

is would encourage positive and trustful conversations – although they realise that is o en easier said than done, especially with time pressure and the varying abilities of drivers. However, an increasing number of drivers are being tasked with various administrative duties, which have traditionally not been part of the drivers’ job. Insurance claims reporting could become part of these duties for rms.

Mountford suggests: “Having drivers report the information to the o ce rst and then passing it onto insurers/brokers sounds ne but can o en lead to delays and opens up the possibility of incorrect information, which, as we detail above, can lead to higher claims costs.”

DECARBONISATION

At the time of writing this report, COP27 was taking place in Egypt, with global leaders gathering to tackle the challenge of climate change.

Reduction of carbon emissions and the move away from fossil fuels will, of course, be a key focus of the event and the transport sector will have a pivotal role to play in this transition.

To coincide with Transport Day at the COP26 climate summit last year in Glasgow, the government con rmed its plans to ban the sale of all diesel HGVs by 2040: trucks weighing 26 tonnes and under would be phased out by 2035, with the largest HGVs following suit over the subsequent ve-year period.

Speaking on the ambitious targets at the recent Motor Transport Decarbonisation Summit in Liverpool, Bob Moran, deputy director, decarbonisation strategy at the DfT, said: “We've got some great commitments, that is true. But we've also now got to do the most important thing, which is deliver against them.

“So that means a massive and rapid shi to zeroemission vehicles. Not just cars, but all vehicles, and that includes commercial vehicles, every single one of them.”

FACING THE CHALLENGES TOGETHER

ANDY SALTER, MD, DVV INTERNATIONAL

The road freight sector needs guidance, support and transparency if it is going to meet the carbon zero challenges and keep the UK’s shelves fully stocked.

Depending on which deadline is being worked to – 2035, 2040 or 2050 – the landscape of the industry is going to have to change dramatically and quickly.

We don’t just mean the introduction of a whole

new generation of trucks – that has been done before. Nor is it just about energy availability and infrastructure – although that presents big challenges – but we also mean the service and maintenance of the vehicles; the driver and technician training and how the acquisition, reselling and operation of those vehicles is going to be managed. Oh yes…and the big elephant in the room, who is going to pay?

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While the future of road transport looks set to be dominated by battery-electric and hydrogen technology to meet the zero-tailpipe-emission requirement, there is already a wide range of low-carbon truck models and fuels for operators to use in the here and now.

Biomethane in the form of compressed natural gas (CNG) or lique ed natural gas (LNG) has increased in popularity over the past few years, as have drop-in biodiesels such as hydro-treated vegetable oil (HVO).

We asked respondents whether they thought the industry was ready for the 2040 end of new diesel trucks target: an overwhelming 76% said no, with only 10% feeling it was achievable, and the rest were unsure at this stage.

However, this is slightly more positive than when the same question was asked a year ago, perhaps re ecting the increasing con dence in alternative fuels usage.

To support the industry’s transition to new fuels

and technology, the government announced in May this year more than £200m of funding for an extensive Zero Emission Road Freight demonstrator programme.

e government said the three-year programme will see the rollout of hundreds more zeroemission HGVs across the country, while also gathering data to establish future refuelling and recharging infrastructure.

Zemo Partnership chief executive Andy Eastlake said at the launch of the government trials: “We welcome this important step on the way to a zero-emission HGV eet in the UK.

“ e vital road freight sector is one of the most challenging to move to zero emissions.

“But with the innovation we see today, matched by the commitment and funding from government, plus the undoubted ambition of our members, we’re con dent of seeing real progress towards the decarbonisation of our freight sector.”

We fully understand the need for deadlines to get things moving, but let’s not underestimate the scale of what needs to be done. The stakes are very high – we have a society hooked on the convenience, reliability and low cost of road freight using hundreds of thousands of diesel trucks to get goods to market. And we have started on a journey, which in less than 20 years will completely revolutionise the sector.

We welcome the government’s zero-emission road freight trials. We’re going to need more of that from agencies around the world and, genuinely, learn

from each other to ensure we don’t waste time and money on dead-end solutions.

Over the coming weeks, months and years Freight Carbon Zero will try and shine a light on the challenges and issues the industry will face, sift some of the fact from the fiction and be a resource for all industry stakeholders to share information.

 Find out more at freightcarbonzero.com

DECARBONISATION/SMART TECHNOLOGY

Switching to alternative-fuelled HGVs is not the only way for operators to decarbonise their eets. e use of smart technology, readily available today, can play a signi cant role not only in slashing eet emissions, but also helping to reduce operating costs, boosting eet safety and driving e ciencies into the business.

In a question posed by sponsor Hireco, this survey asked respondents their views on smart technology, particularly in relation to their green strategy.

Just under one-in-three (31%) operators said smart technology would be ‘very important’ for future business ambitions, with a further 38% citing it as ‘fairly important’. Only 7% found the concept to be unimportant, perhaps re ecting

COMMENT

TOM BAKER, ASSET PERFORMANCE MANAGER, HIRECO

“The biggest challenges in the industry are energy costs, pending recession, driver shortages and supply chain issues. It has never been more important for customers to get the most out of their assets. Using telematics, customers can reduce maintenance and fuel costs, improve safety and ensure compliance while minimising downtime using smarter technology. Improvements can be achieved by:

 TPMS (tyre-pressure-monitoring systems), which can maximise MPG, improve energy bills, reduce blowouts, and enhance mileage and tyre performance;

EBPM (electronic brake performance monitoring), which reduces the need for rolling brake tests from four times a year to once, reducing vehicle

downtime and maintenance costs; live vehicle tracking and reports, which maximise the usage and utilisation of customers’ assets;  reports and alerts, which notify the customer in real-time of potential issues or problems to allow for planned maintenance, allowing issues to be resolved before they become bigger problems. With uncertain times ahead, now is the time to use smart technology, helping to cut operating costs and maximise the performance of customers’ assets. At Hireco we’re championing smart technology to future-proof our own business and that of our customers. We deliver a total transport solution, which will help eradicate some of the concerns found in this research.”

Supported by

How important is smart technology, particularly for your green credentials?

important

Very

Not important at all

24% Not very Neither the increasing awareness across industry of the need for decarbonisation action.

CASE STUDY: HIRECO

Woodland gets a boost with Hireco smart technology

Woodland Logistics, one of the largest national dedicated and general transport logistics suppliers, was one of the rst companies to trial and bene t from Hireco’s Electronic Braking Performance Monitoring System (EBPMS) and Telematics Tracking systems.

Woodland, which provides full- eet transport solutions for high-pro le manufacturers across the UK as well as general transport logistics, has seen its performance, safety capacity and coste ciency improve as a direct result of trialling this next-generation technology.

e EBPMS monitors the stopping energy and amount of braking pressure applied to a vehicle, and in doing so builds up reports that replace traditional brake tests; meaning the tests are reducing from being required four times a year to once a year.

In addition performance readings can be called on at anytime, giving brake performance vision when required.

Telematics tracks data in real-time to improve productivity and operational e ciency, using tools including tracking systems, geozone reporting, trip history and speed analysis.

Paul Eve, head of eet for the Woodland Group, says: “We’ve been impressed with the tracker and EBPMS systems. Since using them, they have proved to be successful in all aspects they cover. In particular, the tracker helped us with the pinpoint location of one of our trailers a er it was stolen. It was vital we located the trailer as soon as possible and by having the tracker tted we pinpointed it within seconds and established where the trailer was swi ly, with the load safe.

Supported by

“We’ve seen the potential for our vehicles having more time on the road, less downtime and fewer breakdowns, as well as improving driver safety. We’re now looking to extend the use of this technology to more of our eet.”

Tom Baker, asset performance manager at Hireco, says: “Customers are reaping the bene ts of our performance technology, which is straightforward to install and makes a positive di erence from the moment it starts being used. With the ability to reduce brake test requirements by up to 75% and monitor vehicles in real-time, the commercial, performance and safety advantages of the EBPMS and telematics systems are clear.

“ rough our smart technology, customers can rely on Hireco to be their total transport solution, enabling peak performance of their assets.”

ALTERNATIVE FUELS

Our survey revealed that 13% of respondents have already begun to use alternatives to diesel on their eets. While this gure is the same as last year’s survey, we can certainly see an upturn in those eets looking to make the move in the next few years.

Indeed, more than one-third (34%) plan to use alternative fuels within the next ve years and a further 17% within the decade.

However there still remains a solid 36% of respondents who have no plans at all to move away from diesel.

Our research also showed that of those already buying or leasing alternative-fuelled vehicles on their eets, the average number of these has risen from 2.9 vehicles in 2021 to ve in 2022.

For those operators yet to be using alternative-fuelled HGVs, we looked at the main perceived barriers cited.

You can see from the chart (below, le ) that upfront cost takes the top spot with 26% of the vote, however this was very closely matched with respondents concerned about insu cient range/ power and a lack of con dence in the new technology at this stage.

A lack of refuelling infrastructure was the top factor for one-in- ve respondents.

Lack of model choice barely came into the mix, with only 1% of respondents citing this as their main issue, perhaps re ecting the rapidly expanding model range being developed by both

Supported by

traditional OEMs and new start-up technology rms.

When it comes to the type of fuels and technology operators are interested in for HGVs (over 3.5 tonnes), hydrogen scooped the top spot for more than half of respondents (56%). is was closely followed by an appetite for hybrid technology and battery electric.

While the above options will undoubtedly dominate in the longer term to align with the government’s aim for zero tailpipe emissions, in the interim many operators are opting for the decarbonisation bene ts of fuels such as biomethane and drop-in biofuels such as HVO (hydrotreated vegetable oil).

Drop-in biofuels took a signi cant upturn in this year’s survey, with onequarter (24%) of

ALTERNATIVE

respondents showing interest, compared with 18% last year. Natural gas is also a tried and trusted choice for many prominent operators, with 15% of respondents showing interest in lique ed natural gas (LNG) and 10% in compressed natural gas (CNG) for their eets.

For operators also running vans, battery electric was the top choice for nearly half of respondents (48%), followed by hybrid technology (such as range-extended EVs) and hydrogen.

What is your alternative fuel of interest? (tick all that apply)

data in brackets)