Too much consolidation?

HGVs ignored in new electrification report

New research into the electrification of road transport has sidestepped heavy haulage despite fears that time is running out to provide a suitable charging infrastructure for trucks.

The report comes from the Electric Vehicle Energy Taskforce – a collaboration of consumer groups, energy, infrastructure, transport and mobility sectors, working alongside the government and Ofgem.

A Rapid Charging Fund was announced in the March 2020 Budget as part of a £500m commitment for EV charging infrastructure “ahead of need”.

However, despite the government’s plans to ban the sale of new diesel lorries by 2040 at the latest, it has yet to confirm its plans to ensure a satisfactory charging network for them.

Andy Eastlake, chief executive of low-carbon specialist the Zemo Partnership, told MT he hoped the DfT would confirm its HGV strategy following a zero-emission road freight trial programme.

“We hope that’s coming out very soon,” he said. “With ‘Project Rapid’ we’re talking with National Grid about putting in a big enough grid connection into the motorway service areas, even without necessarily knowing what we’re going to bolt on to the end of it to power trucks.

“The decision on trucks is whether it’s going to be a hydrogen production facility, energy we store and then dump into batteries, or a catenary – an overhead wire.

“We don’t know. But we know we’re going to need the electrons and lots of them at some point and we can start to make a pretty fair stab of the size of the wire that’s got to go into the ground. Let’s do it once if we can. That’s the cheapest way, even if we don’t use all of it to start with.

“We’re saying to the community and the government, let’s plan slightly longer term and maybe with a bit of risk involved. It’s probably a no-regrets decision.”

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VOX POP Is the industry ripe for increased consolidation?

Bob Terris, chairman, Meachers

Almost every day I receive information on companies for sale. So many people are looking to get out, either because they have no succession or they can see the future level of investment that will be required to meet the environment standards.

There will be further consolidation and the days of small independent operators are numbered. Many of the larger operators depend on smaller operators for subcontracting and if this disappears they will need to operate more vehicles themselves which will add costs. This will result in higher distribution costs overall which will be inflationary.

Add to this the loss of short-term hire from the hire companies which will reduce flexibility and this is not a good long-term scenario.

Not a very optimistic view, but I believe it is realistic.

Matthew Deer, MD, Swain Group

The industry appears ripe for further consolidation. However, many companies still have too much debt from the pandemic. We see independent and family companies wanting to release the property when preparing the business for sale. This is years of hard work for many companies and is seen as part of a retirement income stream.

As we start to see rising interest rates, leasing costs and increased costs of vehicles and trailers, compounded further by the cost-of-living impact on operating costs, I think you’ll see another round of consolidation in the next six months.

Caroline Green, chief executive, Pallet-Track

This may not be a surprise. Without knowing the circumstances of the latest acquisitions [see page 1], they could be potentially weaker firms, operating off the back of hideous fuel prices and wage inflation who may need bailing out.

Kevin Buchanan, CEO, Pall-Ex

We are living in very ‘special times’. I think the last two years have tested many companies and if you had half a mind to retire and get out anyway, then recent events will have certainly focused the mind.

We have also seen some companies like us do well in the last two years and see the current situation as an opportunity to ‘prey on’ weaker or less progressive businesses and pick up a deal.

The likes of EV Cargo who have plenty of cash will be trying to react to gaps in the market and weaknesses in their own strategy. I spoke with Stephen Dunn, the MD at North West Logistics, and they have identified [in Proserve] a company which was stronger in warehousing than them but weaker on transport, so the two companies complemented each other.

One thing is for sure, more consolidation is inevitable as change always creates both risk and opportunity.

Clive Brooks, MD, ABE Ledbury

Acquisitions, of course, are nothing new and the potential benefits for the purchasers are clear (although they are not always achieved).

There’s a certain inevitability to it as families seek to find an exit, in the absence of suitable or willing succession from within.

Is there less determination, now, to keep these companies within the family, over the generations, with all the challenges that are faced? High investment, high compliance, low margin...

French manufacturer to extend its electric range and develop new 16-tonne prototype next year

Renault’s pure power play

By Colin Barnett

Renault Trucks is aiming to reinforce its claim to be Europe’s only fully industrialised manufacturer of battery electric trucks, having captured 50% of the European market in 2021, with a target of 50% of its production being electric by 2030.

Since last July, it has increased production at its Blainville-surOrne medium-duty truck factory in Normandy, where EVs are 90% built on the same line as diesel versions, from two to nine per day.

With 330 medium-duty trucks built in 2021 and in real-world service with numerous operators throughout Europe, over a million kilometres of operation experience have been racked up.

The UK is lagging somewhat, with only two operators, SUEZ and Warburtons, so far operating the trucks. However, that number should increase as each Renault

DRIVING IMPRESSIONS

Trucks dealership, including those in the UK, now has an in-house ‘energy specialist’ trained to take prospective EV purchasers through a comprehensive audit of needs and solutions to identify the most appropriate decarbonising option for their needs.

Operator appeal should also be improved in 2023, when the existing range of light- and mediumduty vehicles from 3.1 tonnes to 26 tonnes, about to be rebranded from ZE to E-Tech, will be extended to include electric versions of the regional T and construction C models.

They will be available at gross weights up to 44 tonnes, and include 4x2 and 6x2 tractors and rigids in 4x2, 6x2 and 8x4 tridem configurations.

Depending on whether two, four or six 90kWh battery packs are specified, power output will be up to 657hp (490kW), transmitted through an Optidriver gearbox. Three types of PTO will be available.

Practical option

Technically, the Renault E-Tech range is already a totally practical

With a selection of vehicles to choose from, we drove a twin-motor D Wide 6x2 26-tonne dropside and a single-motor D 4x2 16-tonne box van on a road route comprising a typical mixture of the type of operating environment for a regional distribution rigid. Apart from awareness of the different physical dimensions – in particular the considerable overhang of the 26-tonner’s rear-mounted loading crane – the driving experience was identical. Inside, the first clue that something is different comes from the blue trim highlights on the steering wheel and around the instrument panel. The major controls are all familiar, with a normal ‘ignition’ key, three transmission pushbuttons (D, R and N) and a traditional park brake lever on the dash, and a three-position secondary brake stalk on the left of the steering column. The instruments are also familiar, but re-purposed. The main central dial, which would have been the rev counter, is now a power flow meter showing the rate of battery charge or discharge, inset with Renault’s normal digital speedometer. Firing up the ‘engine’ is normal, apart from the near total silence. Turning the key one position energises the systems, and you turn it once more to activate the driveline. Press the appropriate button to select direction of travel, release the park brake, then press the pedal and you’re off, to the sound of a bit of distant whirring.

The D models have a 2-speed transmission, but you wouldn’t know unless you were watching carefully for the changes. These happen almost imperceptibly at around 40kph on the way up, and around 10kph coming back down.

Driving requires no particular skills beyond those of any competent fuel-efficient driver – ie good anticipation and sympathetic use of the pedals. However, more considered used of the secondary brake, which now acts to create regenerative charging, has more immediate benefits in terms of extending range. The electric motor’s party trick of developing maximum torque at close to zero rpm means acceleration is lively without getting out of hand. option for the regional return-tobase operation that forms much of the purpose of this category of truck. The downsides – and they are significant – are the true environmental credentials, especially in the UK, and the whole-life cost.

One key limitation in the total cost of ownership of EVs comes from packaging new technology into a platform designed around traditional diesel power. Removing this compromise with a purposebuilt electric truck platform offers one way to bring down the overall costs, as well as proving greater operational efficiency.

Oxygen collaboration

To achieve this aim, Renault Trucks has entered a collaborative project known as ‘Oxygen’, with the Geodis logistics company to design a 16-tonne electric truck for urban deliveries, with total cost of ownership comparable to diesel. The clean-sheet design is being developed by a team from Renault Trucks’ medium-duty business area led by Manuel Marielle, with British design director Paul Daintree’s team assisting with the visual aspects.

The first prototype is due to be delivered by the end of the year, with trials expected to begin in Paris in 2023, the year when Geodis has undertaken to provide carbonfree emissions to 37 French cities.

Priorities for the project include low cab access from either side, with extensive direct vision, ergonomic cargo space access, advanced connectivity for optimised routeing and styling to blend into the urban environment. ■

By Hayley Tayler

Road Transport Expo is now less than three months away and is shaping up to be an unmissable debut event!

With more than 100 exhibitors confirmed to join us including major vehicle manufacturers, bodybuilders and trailer firms, it’s the perfect place to head if you’re looking to upgrade your fleet.

The website is the place to go for the latest exhibitor updates and news, as well as to check out the conference schedule and, most importantly, book your free ticket! Check out roadtransportroadtransportexpo.co.uk.

‘Trucktastic’ line-up

The presence of so many major truck manufacturers is sure to draw the crowds to this summer’s Road Transport Expo.

DAF, Dennis Eagle, Isuzu Truck (UK), Iveco, Mercedes-Benz Trucks, Renault Trucks, Scania (GB), Tevva and Volvo Trucks will all have a presence at the buzzing three-day event.

So make sure you grab the opportunity to check out the latest models in one place, from Euro-6 construction trucks to the latest battery electric town vehicles and everything else in between. But don’t just take our word for it. Here’s what the truck manufacturers have to say about RTX…

■ “Iveco is really “Iveco is really looking forward to the Road Transport Expo Transport Expo this year this year and we’re bringing along with us some great examples of our S-WAY and Iveco Daily range. You can also get a chance to take a drive in a new Iveco S-WAY 490hp. We look forward to seeing you there!”

Lisa Fuller, brand marketing and communications manager, Iveco

Truck makers commit to inaugural Road Transport Expo this summer Enter the players

■ “Volvo Trucks is look “Volvo Trucks is looking forward to exhibiting at the RTX exhibition at Stoneleigh in June. We’ll be showing our full showing our full range of trucks range of trucks there and also have lots of trucks in the ride-and-drive you can come and have a try of. Look forward to seeing you there.”

Martin Tomlinson, truck demonstration and driver development, Volvo Trucks

■ “The team at DAF The team at DAF are looking forward to forward to the Road the Road Transport Expo 2022. It’s going to be a to be a great event with truck manufacturers from across the spectrum, lots of different vehicles, lots of different bodybuilders and lots going on – there’s going to be something for everyone. something for everyone.

“For DAF, we will be there of course with our new generation of trucks, which won ITOTY 2022, so if you haven’t yet had the chance to see them, this could be the first opportunity you’ll get to see opportunity you’ll get to see what the future of truck design looks like, in terms of safety, efficiency and of course driver comfort. We’ll have other news as well: we’ll have our electric vehicles present, as well as our more conventional models like the LF and CF vehicles that satisfy the needs of construction and distribution operators.”

Phil Moon, marketing manager, DAF Trucks

■ “Renault “Renault Trucks is Trucks is attending the Road Transport Expo this summer. We can’t wait to come along with our full range of demonstrators, from our LCVs to our distribution vehicles, construction vehicles and long-haul vehicles, and not forgetting our full range of electro-mobility vehicles. We can’t wait to be there in the Midlands. See you there!”

Alex Williams, head of brand and communications, Renault Trucks UK & Ireland

■ “Mercedes-Benz Trucks UK is “Mercedes-Benz Trucks UK is really excited to be exhibiting at this year’s inaugural Road

Transport Expo at Stoneleigh

Park. We’re looking forward to bringing our full range of trucks from the fully electric trucks from the fully electric FUSO eCanter to the 5-star Direct Vision-rated Econic, and not forgetting the driver’s dream, the Actros L.

“We’re also delighted to be taking part in the part in the ride-anddrive experience to allow operators to get behind the wheel of our trucks and experience the safety benefits brought by MirrorCam. We do hope you can join us at the show!”

Jamie Fretwell, PR & corporate communications manager, Mercedes-Benz Trucks UK

■ “RTX is going to be Tevva’s biggest UK show for 2022 – we are looking forward to revealing the next exciting chapter of our story, and to seeing driver’s faces light up as they feel the throttle response of response of the Tevva the Tevva 7.5-tonne BEV vehicle on the ride-anddrive – the new era of freight freight transport transport is here and you is here and you are going to like it!”

David Thackray, marketing director, Tevva

■ “We are really looking forward to showcasing Isuzu Truck (UK) at the Road Transport Expo at the end of the June 2022.

“This event presents us with a great opportuopportunity to meet face-to-face with customers and industry customers and industry colleagues to discuss the exciting opportunities and challenges that lie ahead in our industry in the coming years. “With commercial vehicles at the very heart of everything this show offers, we are looking forward to talking to customers about our range of products and services and letting them explore the vehicles we have on show.”

Stuart Beeton, head of sales, product and marketing, Isuzu Truck UK

■ “Scania is really pleased to be at the Road Transport Expo in the summer. There will be lots of Scania trucks, lots of other manufacturers and we hope to see you there!”

Jarod Griffiths, demonstration and and logistic, Scania GB

IN ASSOCIATION WITHREGISTER NOW! IT’S FREE TO ATTEND!

Roadtransportexpo.co.uk

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Truck and plant operators are advised to take new restrictions on the use of red diesel seriously

By Patrick Boyers

From 1 April, the rules regarding the use of red diesel in the UK changed drastically and the exceptions that currently allow people to use red diesel in certain types of vehicles have been significantly reduced.

Instead of red diesel being permitted for use in a vehicle based largely on the vehicle’s design and purpose, the focus has now shifted to how the vehicle or machinery is actually being used at any particular time.

The use of red diesel, which attracts a lower rate of duty than road fuel, is governed by the Hydrocarbon Oil Duties Act (HODA) 1979. The fuel is marked with a red solvent so that it can easily be identified by users and enforcement authorities as rebated diesel, and distinguished from normal ‘white’ diesel, which does not get the benefit of a tax rebate.

Given that red diesel takes the benefit of a tax rebate, it can only be used in vehicles in certain circumstances. If there is no exception that allows for its use, then a vehicle must run on white non-rebated diesel.

Red diesel is currently permitted for use in “excepted vehicles”, which are specifically defined in Schedule 1 to HODA, and which relate primarily to the structure and purpose of the vehicle.

However, on 1 April that definition was removed entirely and replaced with what essentially amounts to a two-stage test.

Twin tests

Under the new rules, a vehicle will only be able to use red diesel if it is an “excepted machine” as defined by a new Schedule 1A to HODA, and what is classed as an “excepted machine” will depend on (i) the type of vehicle, machine, vessel or appliance; and (ii) whether that vehicle, machine,

Fuelling a crisis over red diesel?

Photo: Shutterstock

vessel or appliance is being used for one of a narrow list of ‘accepted uses’ (broadly activities related to agricultural, horticultural, forestry and fish farming).

Operators in the chilled distribution and construction sectors, in particular, will be significantly impacted by the changes.

Both stages of the test must be met before red diesel can be used and, as with any exemption in law, the burden lies with the vehicle operator to satisfy HMRC (and other enforcement agencies) that the exemption applies to their particular vehicle and the particular use to which it is being put.

The UK government has published a policy paper, ‘Changes to rebated diesel and biofuels from 1 April 2022’, on its gov.uk website.

As the permitted uses of red diesel now focus on how the vehicle or machine is being used at any particular time, operators may find that only some of a particular vehicle’s activities on any given day permit the use of red diesel, with the remainder requiring the use of white diesel. Consequently, they may have to flush their fuel tanks out more regularly to ensure there is no red diesel residue, use white diesel for all activities, or consider having vehicles dedicated to separate red and white diesel activities.

Vehicle hire

Additionally, those hiring out vehicles and machines should review their terms and conditions and/or charges to put an obligation on the hirer to flush the tank prior to returning the vehicle/machine, or to allow them to apply a flushout fee once the vehicle or machine is returned from hire.

It is an offence to use red diesel when not permitted to do so, and the fines and penalties – including potential imprisonment – for committing such an offence can be significant.

Operators should therefore familiarise themselves with the details of the changes and take steps required, including running down any stocks of surplus red diesel, preparing for the financial implications (can these be passed on to customers?) and training and instructing staff accordingly. ■ Patrick Boyers is a solicitor at

Backhouse Jones

Protest in the right way

Steve Hobson Editor Motor Transport

Driving past my local Tesco the other day, I noticed the petrol station was out of fuel. Turns out the delivery tanker had been hijacked by protesters from Stop the Oil or some such bunch of self-appointed guardians of the universe.

Our grandfathers fought world wars to protect democracy and free speech, but stopping people going about their legitimate business by gluing themselves to road tankers is neither democracy nor free speech – it is plain vandalism. I feel sorry for the police caught between upholding the law and being accused of brutality by manhandling protestors.

You could argue that the 2000 fuel protests when hauliers cut off fuel supplies were equally wrong and caused a lot more disruption to the country than this handful of environmental extremists.

There is nothing wrong with ClientEarth using the courts to hold the government to account for breaches of air quality – although the latter’s response in the form of ill-thought out Clean Air Zones could be better.

We also have long-standing procedures in place for people who want to change the UK – they are called elections. Protest and free speech are also quite legal and within everyone’s rights, but so-called direct action that disrupts law-abiding people earning a living is going too far.

Everyone wants to see a reduction in carbon emissions and the transport industry is moving as fast as possible to decarbonise. So if these people think that tying themselves to goalposts and stopping tanker drivers is changing the world any faster, they are deluded.

Prepare your business for net zero

Martin Palmer Supply chain consultant Logistics UK

Since the government’s announcement on the deadline for the end of the sale of new diesel trucks, and petrol, diesel and hybrid vans, we have seen an acceleration from businesses across the logistics industry keen to transition their fleets to zero tailpipe emission producing vehicles.

Of course, in a world in which diesel has been the primary source of fuel for more than 100 years, this watershed moment has left many large and small road transport operators looking for independent help and guidance as to the best course of action to start their journey on the road to zero emissions.

The key word here is ‘independent’, with many van and truck manufacturers, charging companies and energy companies all offering their own solutions and no clear guidance from government on preferred options for refuelling/access requirements for city centres etc. It is often useful to bring in an independent consultant with experience in these areas to offer help and advice along the way.

Electrification holds the key to the decarbonisation of van fleets, with many battery electric vehicles available on the market already. However, practical adoption of these vehicles into fleets can present significant challenges, particularly surrounding the installation of charging infrastructure and energy supply on-site – access while out on the road is vital too. Businesses must consider these practicalities thoroughly and plan extensively before making the switch.

For lighter HGVs that travel shorter distances, battery electric may also suffice depending on the specific operational requirements. For heavier commercial vehicles that travel longer distances, the route to net zero is more complex, with various solutions – including battery electric, electric road systems, biodiesel, synthetic diesel and hydrogen solutions – all being explored.

While vehicle manufacturers continue to innovate in this space, and the government continues its trials into technology solutions for heavier vehicles, it can be challenging for businesses to know what step to take next. But there are plenty of actions businesses can take to prepare themselves for the inevitable switch to net zero, including adopting lower-carbon solutions now.

Logistics UK’s Supply Chain Consultancy (SCC) recently launched an independent, unbiased, bespoke service to help businesses with vehicle fleets decarbonise their operations effectively and swiftly, while maintaining operational efficiency and profitability.

SCC’s expert consultants will deliver – with specialist support from well-known decarbonisation expert Tim Campbell – an in-depth operations review and tailor-made decarbonisation strategy.

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Safe hands in uncertain times

Having spent the majority of her working life with DPD, Elaine Kerr knows the business inside out. It’s now almost a year since she took over as UK chief executive and, as Steve Hobson found out, her experience is beginning to bear fruit

Elaine Kerr was appointed chief executive of DPD UK in June 2021 after the shock dismissal of her predecessor Dwain McDonald in March of that year for still unexplained reasons.

Kerr is no stranger to DPD having been at the parcels firm for almost 30 years, joining as a sales executive based in the

North West before taking on the roles of customer relationship manager and head of CRM. She was promoted to director of

CRM in 2008 and in 2020 was made executive director for sales, CRM and customer services.

“Previous to this role I was director for sales and

CRM so I know all the top customers and it was about reaching out to them personally. It wasn’t about the business – it is a good operating business. It was about putting that confidence back into our customers that it was business as normal and it was just a change of leadership.

“Our parent [French postal operator La Poste] wanted to appoint from within, someone with UK knowledge.

I’ve been with the business 28 years, I know what has made it such a huge success, I understand the needs of the business and I understand the people side.”

The success of DPD in recent years is undoubted – it is the winner of a record 36 MT Awards, including six

Customer Care Awards in the last seven years, and it claims the top slot in domestic B2C parcel delivery.

Annual revenue has more than doubled since 2015 to over £2bn and its 22,000-strong team delivered more than 350 million parcels in 2021 for 7,500 clients after a huge surge in online shopping saw volumes leap 55% within 10 days of the start of the first Covid-19 lockdown in March 2020. By the end of that year, the equivalent of

FORWARD THINKING: New DPD chief executive Elaine Kerr has made zero emissions deliveries a priority, though she has been frustrated by the shortage of affordable electric vans from the major manufacturers three years’ projected growth had hit the company in just nine months.

Changing fashions

So has the online shopping frenzy of lockdown calmed as shops reopen or become the new normal? “We always look back to 2019 as our benchmark and when we went into 2020 volumes were up over 50%,” says Kerr. “That was when we opened 15 new sites in six months. It was the fastest infrastructure roll-out we had ever done because we wanted to create capacity to make sure we could support our customers.

“Going into 2021 nobody really knew what would happen. We were still in lockdown in Q1 and we maintained the level of growth that we had. We grew another 9% in 2021 and we passed a huge milestone last year when we broke through £2bn revenue. Volumes have not gone back to pre-pandemic levels and growth is still very strong.”

DPD’s decade of phenomenal growth was triggered by the invention in 2010 of Predict, a unique routeing and scheduling system that not only dramatically increased the efficiency of the final-mile couriers but also enabled DPD to give recipients a one-hour delivery window. ➜ 20

LEADING THE CHARGE TO ELECTRIC VEHICLES

DPD has been leading the way in the move towards zero carbon transport and has made no secret of its frustration with the chronic shortage of affordable electric vans from the mainstream OEMs.

Progress is now speeding up however and between January 2020 and February 2021 its EV fleet grew from 149 to 1,700, almost half of which are 3.5-tonne Maxus eDelivers. “It is about working with a number of different manufacturers to secure our orders,” says Kerr.

“We are working with Ford this year and there are other new vehicles coming to market.

“By the end of this year we want to be operating 3,200 and there is still work to be done to achieve that. By the end of 2023 we want to get to 5,000, so we have an ambitious plan because it is so important for us to own that and be the leader in that space.”

DPD opened its first all-electric depot in Westminster in 2018 and now has nine including one with 40 EVs in Bicester, which serves the whole of Oxford, where a zero emissions zone will be introduced in 2023. “Part of the vision is that by 2023 we will have 30 city centres delivered on all-electric vehicles,” says Kerr.

“We are looking at various options for recharging the vehicles and that needs to speed up. We have some capability at the depots and there is public charging as well. We are working with a number of suppliers at the moment to look at more charging facilities at places like industrial estates.”

DPD is also in the early stages of investigating the possible use of electric autonomous delivery robots.

In terms of the 1,200-strong HGV fleet, the path to zero carbon is less clear. “We are working with a lot of different manufacturers and it is still early days,” Kerr says. “Hydrogen will be the one I do feel is going to deliver but we are thinking 2026 or 2027 for that. As soon as they are available we will be there because it is such a key part of our whole green strategy.”

This revolutionised the next-day parcels market and along with a plethora of enhancements to the system over the years has left competitors struggling to match the DPD user experience.

But rivals have been catching up and Kerr is keenly aware that DPD cannot rest on its laurels.

“E-commerce is still booming and the predictions say it will be over £600m by 2030,” she says. “Consumers want choice and we will remain true to the express market where we will deliver that extra innovative, personalised approach.

“We invest heavily in our brand image to make sure we deliver an exceptional customer experience. Since Predict there have been continuous improvements and we continue to refine the proposition. We have recently introduced what3words to pinpoint delivery addresses and it is all about making that final-mile delivery experience the best it possibly can be.”

On the doorstep

Another innovation due to be launched in Q2 2022 is More Time Needed, an option for less mobile recipients who may not be able to get to the door as quickly as most to request the driver waits at the doorstep a little longer than usual.

With delivery success rates already running at 99.9% it is hard to make improvements here, but this should prevent some failed deliveries which will compensate for the slight delay to the driver.

While well over 90% of deliveries are to home addresses, DPD is planning to start offering recipients the option of delivery to an as-yet unspecified parcel locker network later this year in addition to one of its 6,000 parcel shops. Last year DPD became the first parcels firm to partner with the Post Office to offer click and collect in 1,500 branches, ending its exclusive arrangement with Royal Mail.

“A lot of people are talking about out-of-home solutions as a real part of a more sustainable future and increased choice,” says Kerr. “We will be enhancing our out-of-home capability this year including using lockers and that will also help drive up our first-time delivery success rate.

“It is about complementing the existing service. In the UK we still love home deliveries while in Poland they love lockers. It is about understanding how the market is going to evolve and giving people choices.”

All the developments in DPD’s delivery service are aimed at keeping consumers happy and so encouraging its key customers – the UK’s major online retailers – to push more parcels its way rather than through competitors’ networks.

All DPD directors including the CEO spend quality time with customers, so what are they telling Kerr?

“Retailers want flexibility,” she says. “The Holy Grail is ‘what is the latest cut-off time I can offer my consumers?’ That is key and we have invested massively in infrastructure, including the new Hub 5 which opened last year to enable us to provide that growing capacity.

“One of the key things we are working on with our key retailers is an 11pm order cut-off for next day delivery across the UK. We will be launching a new proposition where we will extend the hours of our hub operation. At the moment it finishes around 2.30am to go out for delivery all over the UK. We will be looking to extend that by another couple of hours and pass that benefit on to customers so we can collect or they can deliver to our hubs later. That will be for next-day delivery between 11am and 8pm. That will be our next game-changing move. Rather than being a costly dedicated operation we will incorporate it into our whole existing operation.

“I have been talking to a number of customers and they are saying ‘wow, when can I have this?’”

Local heroes

This latest game-changer has been made possible by changes DPD made in 2020 to optimise its trunking fleet, which now leaves the hubs in waves, enabling delivery drivers to leave their depots at staggered times to reduce bottlenecks and increase depot throughput.

When rolled out later this year, it will cover the whole of the UK with the actual cut-off time depending on where the retailer’s warehouses are located.

“Some may be only half an hour from the hubs or another injection point so they will get a later cut-off than those who are a couple of hours away,” says Kerr. “It will all work back from where they are located. Most are less than two hours from the hubs.”

With all DPD’s five sortation hubs located in the West Midlands, another way to get later cut-off times and reduce trunking is to open regional hubs, and Kerr confirms DPD plans to open a 100,000sq ft site in East London in 2022. ➜ 22

“We are looking at a regional sortation centre strategy over the next five to six years and having a number in key locations like London,” she says. “Ultimately they will complement our hub and depot network and we can run point to point between the regional centres.

“The first one will be in London, at a former Sainsbury’s site in Bromley-by-Bow. It will be a delivery depot but will also carry out sortation so we can do localised deliveries in London and Canary Wharf. There will be a small operation there this year and it will be fully operational in 2023.”

Planning ahead

Online ordering cut-off times after midnight for next-day delivery is of course technically same-day delivery and coincidentally DPD completed the acquisition of leading same-day courier CitySprint in January 2022.

“We will operate as separate businesses,” says Kerr. “They have thousands of customers and DPD has thousands of customers. Their customers want same-day but they might also want a domestic or international service so we will be making introductions of their customers to the DPD service. Equally a lot of DPD customers want to know about same-day so we are introducing a lot of our customers to CitySprint.”

When the 277,000sq ft Hub 5 at Hinckley opened in April 2021 it added capacity to handle 72,000 parcels per hour. This will be able to cope with DPD’s projected growth for some time to come but this additional sortation capacity plus the surge in online shopping triggered by the pandemic meant 15 new depots were needed to handle rising demand, taking the network to 85.

“We will look to open more DCs and some of the smaller depots will be consolidated into larger DCs,” says Kerr. “We need to create more final-mile capacity in the network now we have enough hub capacity. We normally run two waves a day, but in peak it went to three and it could go to four.”

Driving change

All this growth had of course to be managed during a period of record HGV driver shortages, a problem that DPD plans to address by growing its own drivers. Altogether DPD recruited an additional 8,500 staff during the pandemic, half of which were drivers, and Kerr says wages at the time were rising fast.

“For the trunker drivers, it was a price war out there,” she says. “There was not enough availability and we had to pay the highest rates and retention bonuses and try to be creative in what we were offering. It was the most

TURNKEY SOLUTION: DPD has recruited heavily as a result of the pandemic uplift in business, with drivers the main focus. It will open its own dedicated HGV test centre in Smethwick this summer challenging time for HGV drivers in our history. We have a lot of our own drivers but for peak we would historically use agency and other resource to step up to the demand.

“It was hugely costly but we had to do it because otherwise we could not deliver the 2021 peak for customers. We have now decided to own this problem and we have just been DVSA accredited so we will have our own test centre in Smethwick in June.

“We can now recruit and train drivers. We have a big warehouse to wheels initiative – Make the Move! – and are encouraging people from any part of the organisation, not just the warehouse, to become part of this programme. We have had over 800 applicants and feel we are now in a really strong position for the future. We will be able to support peak because we can train drivers to be part of our team.”

DPD was one of the first operators to sign up to the DVSA’s Earned Recognition scheme and this was key to it being allowed to set up its own driving test centre which will employ DVSA examiners to carry out Category C and C+E tests for DPD and other external drivers.

Make the Move! is entirely funded internally by DPD’s linehaul department, with no external funding assistance, though the company is clawing back its Apprenticeship Levy to help fund LGV driving apprenticeships.

“Last year we brought on 20 apprentices and we have a big initiative in 2022 to bring in lots more especially within linehaul,” says Kerr. “It is all about encouraging new young blood to come through into the industry.” n

BREXIT STILL AFFECTING INTERNATIONAL TRAFFIC

DPD opened its International Gateway sortation centre in Hinckley next to Hub 4 in 2015 and it now offers delivery services to over 200 countries. The centre also handles parcels coming in from overseas before injection into the UK network.

Most of DPD’s international volumes are to and from the EU and the additional customs paperwork created by Brexit in 2020 is still dampening trade.

“Brexit made it a very interesting year last year,” says Kerr with typical Scots understatement. “It was one of the biggest challenges that our customers and we as a business have faced. We deal with a lot of small- to medium-size as well as large customers and I don’t think anything could have prepared them for what was happening.

“So it was a very tough year last year, but as we worked through all the complexities and got to October we reached a baseline. This year is all about rebuilding confidence and offering customers new international solutions.”

Problems with customs IT systems have still not been entirely ironed out however and in February 2022 there was another delay when the Customs Handling of Import and Export Freight (Chief) system crashed.

“It is definitely levelling out and we have much improved processes but it has been such a huge change for everybody,” Kerr says. “Traffic has still not recovered to pre-Brexit levels and it is not a sprint to get international back to where it was. Readiness levels among our bigger customers were a lot higher but it is a longer-term approach to say to our small to medium customers ‘it’s OK to ship to France again’. That takes time.”

Statutory brakes

Advanced braking systems came into law on new trucks in 2015 – but have they saved as many lives as expected? Louise Cole reports

Autonomous emergency braking systems (AEBS) became a standard component of new trucks seven years ago, but the technology seems to be poorly understood by both drivers and vehicle operators. National Highways believes this is why it is not having the desired effect on road safety.

It prefers to call the braking systems ‘advanced’ rather than ‘autonomous’ to remove the idea that drivers can rely on an automatic response from the vehicle.

“We realised that AEBS has been mandated on new trucks for seven years and yet we had seen no discernible decrease in HGV collisions with stationary or slow-moving vehicles on the strategic road network,” says National Highways head of commercial vehicle incident prevention, Mark Cartwright.

Looking into it

He decided to look at the issue more closely, engaging with vehicle manufacturers and conducting research with HGV drivers and operators. And his investigation revealed that while the systems work as legally mandated – indeed many of them exceed statutory demands – there was a high degree of confusion in logistics operations as to how the systems worked and their capabilities.

AEBS either use radar to detect vehicles ahead or a fusion of radar and camera systems. The type approval regulation 131 specifies that such systems should be able to detect vehicles of class M, N and O (cars, vans and trailers) which are directly ahead and slowing or stopped.

If such systems detect a likelihood of collision, they will provide an audible warning to drivers which they can disable by steering,

FAIR WARNING: Systems like Mercedes-Benz’s Active Brake Assist 5 will warn drivers of obstructions ahead and provide autonomous braking if no reaction is forthcoming braking, or even touching the accelerator. If the AEBS calculates collision is still likely it will apply the brakes sharply as a vibratory (haptic) alert; and if this isn’t sufficient and the driver does not intervene, it will engage full emergency braking, which is far more powerful and speedy than any braking a driver could bring to bear.

Cartwright says that while all of the systems on the market meet the legal requirement, the radar-only systems are probably a little fast to react and slightly more inclined to false positives, while the fusion models take slightly longer to determine the nature of ambiguous targets but are less likely to produce false positives.

No one appears to know exactly why these braking systems haven’t stopped the rear-end shunts they were supposed to, although Cartwright points out that we also don’t know how many times they have prevented serious collisions.

A Volvo spokesperson says: “It’s difficult to measure [effectiveness in lowering collisions] as we don’t have any stats. However if you ask any driver that has had it go off on him (as I have) he will tell you it’s a lifesaver.”

Disabling the system

As stated, drivers can disable AEBS. The law specifies the driver must be able to disengage the system, although it is worth noting that the German Federal Ministry for Digital and Transport is enacting domestic law to prohibit drivers from turning such systems off at speeds of over 30mph, ahead of an EU regulation change that will only allow them to be disabled for 15 minutes at a time.

National Highways informal research among drivers suggests that some find either the concept or practice of AEBS irritating, while others acknowledge its value.

Operators, meanwhile, have no way of knowing whether their drivers are using or disengaging the systems. The signal for AEBS is encrypted in order to ensure priority control, and telematics systems can’t read it.

Cartwright says that there are some legitimate circumstances in which drivers might want to disengage the AEBS, such as in extreme weather conditions, if the truck is being towed, or if it has a snowplough or other front-mounted equipment that the system won’t recognise. However, he says operators should have a policy stating that the AEBS must not routinely be turned off, and that drivers must report it ➜ 26

if the system is either deactivated or triggered.

“If the system is frequently warning the driver or braking, either the unit needs checking or the driver’s performance should be reassessed,” says Cartwright.

Mercedes-Benz’s Active Brake Assist will automatically turn off and flash a fault warning if there are three emergency braking events in a five-hour period for one of three reasons, says a spokesperson – either the driver’s attention levels are dipping, they are deliberately using it as a braking aid (in which case they need retraining), or the system is faulty.

Everyone agrees these systems are driver aids designed for emergency safety deployment, and not intended to undermine or override a driver’s judgement and experience. However, most drivers get little to no training on how they work.

Start-up time

The systems also take several minutes to self-test on ignition so if there is a fault a driver can be miles from the depot before it becomes clear the AEBS is not functioning.

“Ensuring that safety aids are functioning and understood is part of an operator’s duty of care and their health and safety responsibilities,” says Cartwright. “If operators do not ensure training, and have no policy stating that AEBS is to be used and that deactivation must be for good reason and reported to line management, then they could find themselves being asked why, in the event of a collision.”

AEBS systems will also only recognise a vehicle that looks like a vehicle, and won’t necessarily react to an offset vehicle, such as one stopped partially off-lane. The issue of broken-down cars that have limped to the side of a carriageway is therefore a particular concern.

Mercedes-Benz claims its AEBS is the only system that recognises pedestrians when the vehicle is moving at up to 50mph, although Iveco says its system can help protect pedestrians in slower urban traffic.

Mercedes-Benz couples its AEBS with Sideguard Assist to check for vulnerable road users on the nearside during cornering. It is working on a variant that will also supply automated braking, but this is currently only available on left-hand-drive Actros and Arocs.

“Not all safety systems are the same,” says a MercedesBenz spokesperson. “The legal requirement for an HGV’s AEBS is only to reduce the speed of the vehicle from 80kph to 60kph when dealing with a stationary object. Mercedes-Benz Trucks’ Active Brake Assist 5 far exceeds this.”

However, he warns no system is infallible. “Active Brake Assist 5 may not react to pedestrians less than one metre tall, vehicles that move quickly into the detection zone of the sensor, people in a tunnel, people who are not moving, or animals,” he admits. “Every system has its limitation, and ours is no exception. In snow, rain, fog, heavy spray, dazzling conditions, direct sunlight or constantly changing light conditions, the system’s range and its detection of vehicles and people may be impaired.”

The Volvo spokesperson says: “These systems are a driver support aid. They’re not there to replace the driver or do the driving. Human nature means drivers will always make mistakes, as with any job, and this is where these systems come into play. The same applies to lane keeping support, lane changing support, driver alert support, and so on.”

National Highways has created a campaign through Driving for Better Business to advise operators and drivers about AEBS. For more information, see drivingforbetterbusiness.com/articles/stop-right-thereunderstand-the-life-saving-kit-on-your-hgv ■

STRAPS AND CURTAIN INJURIES

The Association of Pallet Networks (APN) noted in its 2021 sector report that pallet networks had driven hub safety incidents down for the fourth year running, to 0.49/100,000 pallets moved.

APN is holding a health and safety open day at all its associated hub sites on 28 April to promote best practice, and what pallet networks are doing to reduce incident rates. Details will be made available on APN’s website.

“The APN Health and Safety Forum group meets quarterly, and is attended by the pallet networks’ health and safety managers. Each month APN members share and analyse key statistics and information and share best practices,” says APN chairman, Paul Sanders. He says the consistent analysis of such data across the sector provides a powerful insight into the cause of accidents, so they can formulate ways to mitigate risk.

“We identified that the improper use of curtains, straps and nets is responsible for almost a quarter of accidents,” he says. As such this will be a key theme of the open day. Between them the pallet network hubs have thousands of curtainsiders loading and unloading each weekday night.

The Pallet Network’s HSEQ manager Steve Underwood says that, in his experience, drivers can be vulnerable to injury through:

■ Moving curtains held only by a buckle, which can snap, causing

falls;

■ Not controlling the posts when moving them, which can allow

the pole to hit the driver’s head;

■ Not taking care when untying straps, as buckles can bounce

back at the drivers’ head;

■ Handling curtains in inclement weather, as they can become

sails in high winds, or moving them when the ground is slippery, which can be hazardous and tiring – according to the APN, 36% of curtain accidents happen in windy conditions;

■ Trying to hurry when pulling the curtain pole, which can cause

harsh jolting if the curtain snags and can make a curtain come right off the end, throwing the driver into traffic;

■ Manipulating straps and buckles in cold weather which can lead

to snagged and trapped fingers.

Underwood suggests all curtainsiders should have a pull cord attached to the front swanneck post, to take the strain out of closing the curtain, which is particularly hard for shorter drivers.

“Drivers need to be aware of all the possible issues surrounding curtaining and strapping activities to remove any possibility of an incident,” he says. He also says drivers must wear proper PPE, including footwear and where necessary face and head protection. They also need training in manual handling. “They need to remember to check the area around the vehicle for trip hazards and to double-check all buckles before leaving a site,” he adds.

He says inexperienced, rushed or tired drivers are most at risk. “It’s a tough job, so drivers should take even greater care in busy environments, confined spaces, poor lighting or bad weather,” he states.

Sanders says: “Using curtains and load restraint kit may seem like a common-sense matter, but there are many things drivers need specific and repeated training on, so they don’t put themselves at risk.”