News
motortransport.co.uk
Food producer plans to replace all of its diesel trucks in next two years
Nestlé switches fleet to bio-LNG Nestlé has switched 75% of its owned fleet of trucks from diesel to bio-LNG in a move designed to help it achieve net zero by 2050. The food manufacturer said the move to bio-LNG had taken several years to deliver, due to the complex nature of the delivery network. Sally Wright (pictured), head of delivery at Nestlé UK and Ireland, said: “Considerations such as the refuelling facilities of bio-LNG, the weight of the goods the trucks carry and the range restrictions of alternate fuels have meant that every step of the journey needs to be meticulously planned. “We’ve worked with a number of partners to make the change and collaboration has been key.” Over the next two years, the
remaining fleet of Nestlé-owned trucks at the end of their commercial life will be replaced with trucks using alternatives to diesel. ■ EV Cargo is replacing diesel with hydrotreated vegetable oil (HVO) in 25 of its trucks at client
Budweiser Brewing Group’s Magor brewery in Wales. The move will deliver an immediate cut of 92% in CO2 emissions. The company also plans to double the number of trucks using HVO at the depot later this year.
XPO extends its Tesco fuel deal
XPO Logistics has been awarded a multi-year contract renewal by Tesco to distribute fuel to the supermarket’s consumer filling stations. XPO uses 350 specially trained drivers to collect fuel at nationwide fuel terminals and allocate it to more than 500 Tesco filling stations and regional distribution centres. This includes over 150 drivers from XPO’s depot in Thurrock, Essex, which provides centralised control tower management of transport activities. A further 18 outbase depots ensure nationwide delivery capability. The company’s drivers and subcontractor network deliver approximately 6 billion litres of fuel for Tesco per year. The two companies are also collaborating on developing a plan for carbon-neutral and carbon-negative transport solutions.
VOX POP Can nearly a third of hauliers be facing collapse? Lesley O’Brien, director, Freightlink Europe Depending on your viewpoint, there has never been a worse or better time for the haulage industry. We are currently witnessing a flurry of acquisitions. Businesses offering excellence of service, monitoring costings, passing on increases to clients and strict on credit control are thriving. Those, however, who bury their heads in the sand will most certainly be putting their company at risk. Simply passing on the increased cost of fuel and drivers’ salaries is not enough. Insurance, maintenance, truck costs, the increase in NI and staff costs all impact on our bottom line. Many large operators rely on small ones. Let’s ensure we support them with prompt payment. John Fletcher, MD, Dawsongroup There is massive cost pressure on all businesses. It’s made more difficult when you throw in faltering supply chains, labour shortages, NI hikes and legislative issues. Those hauliers who cannot insulate themselves from these shocks or that don’t have a pricing mechanism reflecting them are going to be in trouble. 6 MotorTransport
To say a third of the industry is in difficulty may be alarmist as not all of those businesses are necessarily active; however, now more than ever you need to protect your margin and your cash flow. Andrew Malcolm, CEO, Malcolm Group If the information is correct it’s a very alarming situation. A lot of companies involved in straight road transport will be feeling the pain of increasing costs along with downtime in getting parts. Cash flow may be their biggest challenge. Even if they manage to pass on costs, the time between paying out and recovering the same can be quite extensive. Bob Terris, chairman, Meachers There are certainly situations where difficulties will occur unless customers cover the cost increases. This will be compounded because the rates charged were too low before costs increased. We have seen a drastic increase in the number of businesses that are being offered for sale, probably pre-empting the difficulties highlighted. The other major problem is if the price increases implemented cannot be sustained
when the volumes drop, the cost-versusrevenue ratio will suffer dramatically. These are certainly worrying times for the industry. Kevin Buchanan, group CEO, Pall-Ex Now we have the ongoing challenges of wages and fuel inflation, I expect we will start to see a higher rate of business failures in the haulage sector. Although pallet networks are traditionally recession-resilient, other parts of the haulage sector will be more vulnerable as we move increasingly towards formal recession. Those who fail to adapt and change quickly to adverse market conditions could find life very tough indeed. Moreton Cullimore, MD, Cullimore Group I am not surprised by what the data is saying. There was a spike in work last year for those on pallet networks, but that has definitely backed off. While hauliers are busy, the increase in costs, not just fuel but employee wages etc, has not been reflected in the ‘selling price’ in an industry of low margins. I am significantly concerned for my transport company and others because all I see is costs at their highest and our selling price not increasing at the same rates. 9.5.22
