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TCs attack FORS
NFT buyer offers to pay creditors in equal monthly instalments
EV Cargo Logistics buys NFT assets in pre-pack
16/01/2020 13:00
FORS director defends auditing procedures
By Chris Tindall
p3
‘Childish’ CAZ charges
Non-Euro-6-compliant trucks face automatic fines p4
Technology investment Wincanton buys cameras and telematics
p8
OPERATORS INSIDE AJWG .......................................................... p3 CEVA Logistics .............................................. p6 Clugston Distribution Services ...................... p3 DHL .............................................................. p6 DHL Supply Chain .......................................... p4 HLD Group..................................................... p3 Kinaxia Logistics ........................................... p6 Kuehne+Nagel .............................................. p6 Maritime Transport........................................ p6 Wincanton .................................................... p8
Creditors of NFT Distribution Operations have contacted MT to criticise the way its business and assets were sold and that it could take months before unpaid invoices are settled. PricewaterhouseCoopers (PwC) confirmed last week that it was appointed administrator of the company, which is headquartered in Alfreton, Derbyshire, and had a workforce of 2,231 staff. PwC said that on 31 January the majority of NFT’s business and assets were sold to EV Cargo Logistics in a pre-pack deal after the appointment of administrators. The sale involved the transfer of an element of the secured debt from NFT to the purchaser. It said this safeguarded 1,980 jobs and “ensured a seamless transition of the business and services for its associated customers”. PwC restructuring M&A part-
ner Rob Moran said: “The sale of the majority of the business to EV Cargo Logistics puts the ongoing business on a stronger financial footing.” It is understood that NFT continues to operate its Tilbury site under the control of the administrators. However, some companies said they had been left in the dark about when they would be paid. In a letter to creditors seen by MT, EV Cargo Logistics said it was only prepared to settle amounts owed “in equal monthly instalments”, provided that a contract HOT WATER: HGV drivers aboard a ro-ro ferry that rolled heavily in rough seas en route to Scotland ignored international regulations and stayed in their cabs, putting themselves and rescuers at risk. A Marine Accident Investigation Branch (MAIB) report highlighted the “industry-wide” issue after nine trucks toppled over on the P&O ferry as it sailed from Northern Ireland to Cairnryan on 18 December 2018. Four drivers were found in cabs of vehicles that had toppled over; one was trapped and had to be freed by the emergency services when the ship docked.
remained in place. One creditor queried why he hadn’t been kept informed of developments: “It frustrates me. It’s the principle of it,” he said. Sole trader David Lynne said he was only owed £500 for backloads, but he was struggling to speak to anyone at EV Cargo Logistics. Records show that applications for standard national O-licences in the name of EV Cargo Logistics in the Welsh, West of England, North West of England and East of England traffic areas are all under consideration.
GET MORE mantruckvanandbus.co.uk
Business barometer p10 Viewpoint: PM changes environmental targets p12 Apprenticeships in logistics: p14 Trailer rental: p16
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News
motortransport.co.uk
FORS director defends auditing procedures as TCs reveal dissatisfaction with the scheme
FORS faces flak from TCs By Chris Tindall
Accreditation scheme FORS “isn’t fit for purpose”, with auditing processes that are no longer thorough enough, according to traffic commissioner (TC) for the West of England Kevin Rooney. Rooney’s comments at a recent compliance conference in Somerset appeared to reveal TCs’ frustration at FORS member companies attending public inquiries (PI) with inadequate auditing procedures. Rooney said: “FORS isn’t fit for purpose. It is not doing what it was meant to do.
“I had one operator in [at a PI] and he had a FORS audit that he provided and said, ‘it took me 40 minutes to fill that in’. The operator hadn’t even been visited.” The TC gave another example of a company that had not filled out preventative maintenance inspection sheets. “There were scraps of paper in tins, but they were not filling out PMI sheets. It had a FORS audit straight before a PI that did not pick that up – there were no PMI sheets for the past six months.” Rooney claimed FORS had
become more about “have you got a policy for this and that – not: is the policy in place and working?” FORS director John Hix commented that 5,000 Bronze audits are carried out every year and that none are conducted over the telephone. Where a company failed an audit, he pointed out that there might be an opportunity to submit corrective evidence and “the auditor may wish to contact the firm by telephone to further verify any queries in relation to these documents”. Hix said: “We would welcome
a TC to attend a FORS audit so he or she can see how the audit system operates and understand the level of time and effort FORS operators put in to going beyond legal minimum compliance in order to pass these audits. “FORS has been instrumental in driving up safety and environmental standards in commercial fleets of all types for the past 12 years.” AECOM, which in 2015 won a five-year contract to operate and manage FORS, did not respond when contacted.
Holding company buys Clugston Distribution Services The new owner of Clugston Distribution Services is linked to Malta-based HLD Group, which bought AM Widdowson and Sons
in 2015 and Crewe-based Davis Haulage in 2016. Clugston Distribution Services (CDS) was sold to holding
company AJWG in January following the collapse of parent company Clugston Group. AJWG MD Demis Armen Ohandjanian is also chief executive of HLD Group. AM Widdowson, which was bought by HLD Group in June 2015 and renamed Loglecdissol, was put into administration a year after its purchase, while Davis Haulage was sold in a pre-packaged deal to Buffaload in December 2016. Ohandjanian has taken on the role of MD of CDS and appointed Alistair Clugston, great grandson of Clugston founder JG Clugston,
as group chief executive. Alistair Clugston is the owner of Clugston International Trading, which specialises in selling trucks to overseas markets. A CDS spokesman told MT: “Alistair and his co-investors are going to form a new group based around three operating Clugston businesses: distribution and commercial vehicle services, international sales and property. “Alistair is investing his 100% shareholding of Clugston International Trading Limited into the group in return for a shareholding in the group overall.”
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News
motortransport.co.uk
System to automatically charge non-Euro-6-compliant trucks in CAZs will lead to operator fines
RHA slams CAZ charging By Carol Millett
Government plans for a national clean air zone (CAZ) charging system that will not allow operators of non-Euro-6 trucks to automatically pay entry charges have been slammed as “anti-business, childish and unacceptable” by the RHA. The CAZ charging system is the brain child of the Joint Air Quality Unit (JAQU), which is a joint venture between the DfT and Defra.
CAZ charges will be applied to all non-Euro-6-compliant trucks and can be as high as £100 a day. The JAQU charging system, which is being developed to be rolled out nationally, will automatically fine operators that do not pay, but will not automatically alert operators when their nonEuro-6 trucks enter a CAZ area and incur a charge. Instead, the onus is on operators to separately log and monitor
their trucks’ routes and pay for every entry non-Euro-6 trucks make into CAZ areas. RHA national policy director Duncan Buchanan told MT: “This system makes managing vehicles complicated in that every entry into the zone has to be separately logged and paid for. Mistakes will happen and operators will get fines. “This anti-business approach is childish and is unacceptable
behaviour from a government department. It displays a lack of understanding about the complexity involved for many operators.” Responding, the DfT said: “Because of the number of local authorities planning to operate a CAZ, and the interaction with the central payment portal, it is not possible to offer auto pay to any vehicle type. This is the same as London’s Low Emission Zone.”
RIDING A WAVE: DHL Supply Chain has signed a five-year contract with luxury yacht manufacturer Sunseeker International to be its logistics partner. DHL will manage all of the Poole-based company’s inbound freight movements, as well as goods receiving, stores, kitting, shipyard material movements and the line-feed of production parts. It is also tasked with introducing a transformation programme and accelerated digitalisation to support the company’s growth plans. Approximately 80 Sunseeker staff will transfer to DHL under TUPE regulations as it helps Sunseeker adapt its operations. Pictured shaking on the deal are DHL Supply Chain UKI manufacturing logistics MD Mike Bristow (left), and Sunseeker International COO Michael Straughan.
4 MotorTransport
10.2.20
News
motortransport.co.uk
Group chief executive for Kinaxia Logistics in management review
Government to host hub for future technologies
By Tim Wallace
Minister of state for the future of transport George Freeman (pictured) will visit the inaugural Innovation & Technology in Transport (ITT) Hub at Farnborough International Conference & Exhibition Centre on 13 and 14 May. Freeman will deliver a keynote speech at a networking reception, from 5pm on 13 May. The government will host a hub for a range of government and non-governmental organisations that play a key role in the provision, regulation and development of current and future services across the sector. The event will feature more than 100 exhibitors, with a ride and drive vehicle demonstration programme featuring the latest vans, LCVs and trucks powered by a range of lowcarbon technologies. To register, go to itthub.co.uk
Hobbs in new role Kinaxia Logistics has appointed Simon Hobbs to the new role of group chief executive. Hobbs has previously held senior positions with CEVA Logistics, Kuehne+Nagel and DHL. The group has enjoyed ‘significant and continued growth’ over
recent years, with annual revenues now topping £200m. Kinaxia Group founders Graham Norfolk and Peter Fields said: “In line with our recent growth and increase in scale and complexity, we have reviewed our management structure. Simon has a wealth of customer, operations and commercial experience
gained from senior supply chain roles. His experience will complement the skills we already have and support our growth strategy.” Hobbs added: “We are confident that our ‘family of families’ approach will result in sustained growth as we continue to offer local expertise, ownership and entrepreneurship with a national capability.”
SAFETY PAYS: Maritime Transport has reported a major reduction in incidents since 2018 as it invests in and improves its safety performance. The company rewarded drivers in December with annual bonuses in excess of £1.4m, averaging about £500 per driver. Established in 2013, the scheme is based on telematic scores and was introduced to encourage drivers to maintain higher levels of safety and compliance. A range of key performance indicators such as fuel efficiency, braking and acceleration are used to monitor drivers and reward them accordingly, with the opportunity to become top earners.
‘‘FORS puts us ahead of the game’’ Kevin Gundel, Transport Manager and Owner, Gundel Transport
FORS is the go to best practice accreditation scheme for operators of any description, with over 5,000 members across the UK and Europe. Using the comprehensive FORS benefits package of audits, training and toolkits, FORS members are able to demonstrate best practice, consistently delivering high levels of efficiency, environmental protection and, above all, safety. For a safer, smarter, greener future, get on board with FORS.
www.fors-online.org.uk 6 MotorTransport
Call: 08448 09 09 44
SAFER SMARTER GREENER @FORS_online 10.2.20
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25/11/2019 11:03
News
motortransport.co.uk
Logistics firm focuses on safety and efficiency
Wincanton invests in cameras and telematics Wincanton has invested in 360-degree cameras and telematics technology across its home delivery fleet. As part of its commitment to improving safety and efficiency, all core vehicles used for deliveries of furniture and soft furnishings are now equipped with hardware, supplied by MiX Telematics. The cameras record footage in all directions during every journey, which can be accessed by transport
managers in near real-time. The on-road recordings are also used to personalise feedback and training for each driver, which aims to help individuals avoid and respond better in future incidents. The cameras work together with telematics hardware to give an allround view of driver and vehicle performance. The technology measures factors such as acceleration, braking and speed to give drivers a performance score, which reflects how safely and efficiently they are driving. Wincanton director of home and efulfilment Paul Durkin said: “This investment in cameras and telematics is a positive step for us as a business, particularly within home delivery, as we look to be safer and more efficient in everything we do, every day.”
GREAT MOVE
WEDNESDAY, FEB. 11th, 1920
Motor Transport was launched in 1905 as Motor Traction. We look back at a story published 100 years ago this week
The Proposed Taxation: One User’s Opinion on the Probable Effects upon the Motor Transport Industry We think that anything in the nature of a tax will increase the cost of motor transport, and will be a thing for the industry in general, as this is a line practically in its infancy, and is only commencing. As you are probably aware, the cost of operating a motor lorry is considerably higher than horse carriage, and the rates are also very much in advance of the railway rates per ton mile. If you tax petrol lorries you increase their charges, which brings them out of all proportion to the railway, and this will throw work now being done by motor transport back to the railways, which, I understand, is a thing we want to avoid, owing to the present congestion on the lines. The writer is of the opinion that it would be a good move to subsidise mechanical transport for a few years, to enable it to adapt to present altered circumstances. G. J. PALMER AND SONS
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8 MotorTransport MTR_100220_008.indd 8
10.2.20
06/02/2020 15:29:08
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News
motortransport.co.uk
Last year’s rate increase was bigger than usual, but was it enough for logistics to see growth?
New year, new drive for profit
Sterling
Irrespective of one’s political persuasion, there is no doubt that December’s election result was good for the pound. Money markets hated Brexit uncertainty and feared a free-spending Labour government. So the Tory’s huge majority pushed up the pound’s monthly average value to €1.18 in December, its highest for three years. It seems churlish to point out that that still looks weak when set against its 20-year average of €1.33. Sterling’s performance against the dollar also picked up in December, reaching $1.31, its highest for nine months. Will the pound hold onto all of December’s gains? Sterling held up pretty well in January, but the difficulty of Brexit trade negotiations and the risk of a no-deal outcome seems likely to weigh on the pound’s value against the euro later in the year. Its performance 10 MotorTransport
against the dollar is harder to forecast. President Trump wants to weaken the dollar to boost US exports and deter imports. If he succeeds, that would help ease UK fuel prices. But US strategy is unpredictable under the Trump administration, especially so with the US election coming in early November.
Earnings
Data released last month by the ONS showed that annual growth in average weekly earnings for UK employees was running at 3.2% during the three months to November. That is the nominal figure: the increase in real terms after taking account of inflation is 1.6%. This latest figure appears to suggest average pay settlements are now levelling off. They had begun to pick up in mid-2018, peaking at 3.9% (2% in real terms) in summer 2019. Most analysts expect pay settlements to stay at around the current level this year. The best steer available came last month in the Treasury’s latest roundup of independent forecasts for the UK economy. Their median value for nominal earnings growth in 2020 is 3.3%. Inflation is expected to average 1.4% to 1.7% this year, so most employees will see a small gain in their earnings in real terms. The dearth of applicants for driving jobs means that many truck drivers are more likely to do rather better than these average figures.
buyers timed fleet acquisitions to beat the arrival of smart tachographs last June. Analysts expect the UK market to shrink in 2020, but the outlook is far from certain.
Fears of a no-deal Brexit and future tariffs on imported trucks might generate another purchasing pullforward, followed by a famine in 2021.
HAULAGE RATES 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5
2011
2012
2013
2014
2015
2016
2017
2018
2019
STERLING 1.35
euro
1.30
dollar
1.25
£1 buys
Rates dipped on average by 0.2% in the final three months of 2019 compared with Q3, according to the latest Services Producers Price Index, published by the Office for National Statistics (ONS). This slight reduction probably stemmed from diesel prices softening in Q4 compared with Q3, filtering through to rates via lower fuel surcharges. Nevertheless, following increases in the previous three quarters, typical haulage rates in 2019 as a whole were 2.5% above their 2018 average. This is the biggest annual increase recorded since 2011, when haulage rates rose by 3.2%. Back then, rates were boosted by inflation running at 4% to 5% and a 14% hike in the average diesel price in 2011. Neither of those were an issue in 2019: annual inflation averaged just 1.8% and the bulk diesel price was pretty close to 2018’s average. The key factor in last year’s rate rises was the higher cost of labour. An RHA survey indicates drivers’ employment costs rose by an average of 5% in the year to 31 September 2019. And the loss of established names such as Aspray Transport, Richard Read (Transport) and Bedfords Transport last year underlined the fundamental need to achieve sustainable profit in the industry.
1.20 1.15 1.10 1.05 1.00 Sep
Oct
Nov
Dec
Jan
Truck registrations
Brexit uncertainty served to boost UK truck registrations in 2019. Europe-wide registrations data collated by ACEA, the vehicle manufacturers’ trade association, reveal that registrations of new trucks over 3.5 tonnes GVW across the EU as a whole were virtually flat last year, up by just 0.9%. But UK registrations rose by 9.5% as operators brought forward fleet replacements to avoid the risk of post-Brexit tariffs on new trucks. This growth rate outstripped that in other major countries and saw the UK overtake France to reclaim its position as Europe’s second largest truck market after Germany. What’s notable is how the European market swung from growth in the first half of 2019 to decline in the second half as truck
EARNINGS 4.5
Average earnings growth %
Haulage rates
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Apr
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three months to
10.2.20
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Viewpoint
motortransport.co.uk
Boris moves the goalposts H Steve Hobson Editor Motor Transport
ow much must Boris love being PM? Seemingly on a whim he can announce that the ban on new petrol and diesel cars and vans will be brought forward five years to 2035. Yes, in just 15 years’ time all new cars and vans will have to be electric – either battery or hydrogen fuel cell. Last year just 1% of the 311,000 vans sold in the UK were electric. Even assuming the vehicle and battery manufacturers can switch production from internal combustion engines to electric driver trains we are woefully unprepared when it comes to charging infrastructure. Many bus operators are trying to go electric – including Aberdeen with its pioneering hydrogen fuel cell bus fleet – but are coming up against the barrier of inadequate power supplies.
The National Grid is confident that it can connect to the UK’s growing renewable electricity generation but has warned that most motorway services are on the “equivalent of a piece of wet string” when it comes to electricity connections. The same could be said for most distribution centres which were located with easy access to population centres and motorways in mind rather than the need for a 10MW or 15MW electrical supply to make green hydrogen or charge large numbers of batteries. Logistics is a highly adaptable and resilient industry but the speed of change that is required now that governments have finally woken up to the climate crisis means the huge changes ahead won’t be cheap. With operators’ profit margins hovering around 3% where will the money come from?
Is Earned Recognition worth the effort?
A
Jemma James Director, commercial operations and marketing, TruTac
question I am often asked is ‘is Earned Recognition worth the effort?’ The answer is ‘yes, definitely!’ It’s the first time the DVSA has given specific KPIs defining what a good operator looks like. If you are fulfilling your legal operator obligations, why wouldn’t you want to prove it by having the DVSA rubber stamping your driver and vehicle standards? Of course, there is an argument for every operator being within the scheme due to existing operator obligations. But I believe there is a difference between voluntarily (and proudly) proving you’re compliant and just not getting caught yet. Some say keeping up to date with the latest guidance and rule changes isn’t always easy, but I believe online and media channels used by the DVSA and traffic commissioners are better than ever before. Unfortunately, some issues fall through the net and don’t get the attention they deserve, such as last year’s changes to O-licensing requirements for certain vehicle types. We had to push this out via our media partners as it had largely gone unnoticed. However, I appreciate the complex
12 MotorTransport
multiple rule sets and regulations can be difficult to communicate and equally hard to interpret. I don’t personally agree with restricted licences, GB domestic rules or the lack of regulation around smaller commercial vehicles and their so-called professional drivers who drive every day for a living but often cannot demonstrate any qualification other than possession of a car licence. Any vehicle type can be a weapon in the wrong hands. All commercial vehicles (regardless of size) should be driven by a professionally trained and competent person and maintained by an operator who understands the legal and compliance requirements. Anyone who drives for a living should undertake qualifications from a regulated body to understand the impact of tired driving, distracted driving, the importance of daily vehicle checks etc. Then they may have some appreciation of the high professional standards HGV drivers and full O-licence holders must adhere too.
The newspaper for transport operators
To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace 2158 Deputy head of content Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Betts 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Head of sales Jo Pembroke 07590 561925 Sales director Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Verity Callum 07823 440821 MT Awards Katy Matthews 2152 Managing director Andy Salter 2171 Editorial office Road Transport Media, First Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/year. RoW £163/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2020 DVV Media International Ltd ISSN 0027-206 X
Got something to say?
If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 10.2.20
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Apprenticeships
The answer is on your doorstep
Stockton Riverside College on Teesside has teamed up with local employers to give students hands-on experience in the logistics sector – a move that has driven take-up of apprenticeships. Steve Hobson reports
S
ecuring funding for logistics apprentices is only half the battle when it comes to solving the skills crisis – getting students and employers talking is also vital. Stockton Riverside College (SRC) on the south bank of the Tees believes that its Logistics Academy has created a successful collaborative model for others to follow. The academy is now in its sixth year, and Michael Duffey, head of construction and professional services at SRC, says the college began to focus on ways to ease the skills shortage in logistics. “So we got together with local employers to identify both their training needs and a way forward to address skills shortages. We identified a number of key strands which formed the basis of the Tees Valley Logistics Academy: raising awareness of the industry among young people; developing work experience opportunities for college students; providing a range of training opportunities for the sector, including apprenticeships and building higher level skills,” he says “PD Ports was very involved from the start and we have been successful at raising awareness and getting employers into schools. The Year 10 students [age 14 to 15] go away knowing what logistics is.” The Think Logistics programme lasts almost 18 months, normally from the November of the students first year of A-levels or equivalent, to the March of their second year. During this time the students would have six ‘masterclasses’ on improving their employability, six workplace visits to logistics operations, have a mentor assigned with a monthly one-hour meeting, and a four-week paid Internship with logistics firms during the summer holidays. “It not just a course,” says Duffey. “It is a complete package and work experience is a key factor. Thanks to Career Ready and PD Ports we are able to embed that into the programme.”
promoting career opportunities. “Logistics has no tradition of doing that,” he says. “Employers need to be more proactive. Without that we won’t get first order talent.” Ruth Cabourne is work-based learning manager for construction and professional services and the Career Ready programme coordinator at SRC. She explains: “The outcome could be getting a job or just personal development and having more confidence in interviews. Some students completing the programme have gone into apprenticeships and we have had particular success with the supply chain warehousing operator apprenticeship.”
Money matters
Success story: former PD Ports director Jim French with protege Alice Briggs, who went on to take an engineering apprenticeship
SRC is keen to offer approved apprentice training schemes that can be partly funded from the Apprenticeship Levy, which has seen the logistics sector pay in £300m over the last two years but only draw down less than 10% of that. “There is a lack of apprenticeships suitable for logistics so we used team leader or business admin apprenticeships and then progressed to something more specific,” says Duffey. “I hope that does change.” SRC does not see apprenticeships as an alternative to degrees but rather as a route in to further study. “We are keen on higher education as well as further education, and we are working with Teesside University on a Level 6 supply chain manager qualification,” says Duffey. “But we have to start at the beginning to get people interested in logistics.
World of work
Career Ready is a national charity linking employers with schools and colleges to open up the world of work to young people, and Duffey believes that an introduction to the world of work, with visits to work places and mock interviews, is something growing numbers of students really value. Ian Nichol, head of logistics at Career Ready, insists that logistics can learn from other industries such as construction, financial services and the health service in 14 MotorTransport
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OPENING YOUNG EYES TO THE WORLD OF LOGISTICS During MT’s visit to Riverside, two young people gave impressive presentations on what their internships had done for them. Jacob Moat, pictured right, is now an apprentice quantity surveyor with PD Ports. He explains: “When I was 16 I had no work experience and wanted to enhance my CV. Career Ready did a great job marketing the programme to my college and I thought it would be beneficial and help get me an internship. I wasn’t sure what career path to take – I was thinking about business management and concluded Career Ready would help me learn about the role and decide on career. The programme included employability skills seminars, business visits to firms including PD Ports and Bulkhaul and being assigned a mentor. It worked really well and helped separate me from the crowd. At 16 I was naïve about logistics but now I understand what it is and the role of land and property in logistics. “I did my internship at PD Ports and learned different roles including marketing and estates. I had never had any experience of working in a business environment so it was good to learn how to conduct myself in the right manner. I learned about commercial property and found I wanted to get involved in it. As a result I found employment on an apprenticeship with PD Ports – I never expected a job so it was a dream come true. PD Ports has sponsored me to do my chartered surveyor degree apprenticeship part-time over five years. So I still get work experience and get to apply my studies to work and vice versa. I really enjoy my work – learn something new every day. “Five years with an employer is a big attraction compared with going to university where you don’t know if there is a job at the end. My parents were very pleased when I joined the apprenticeship programme and especially pleased I have a job! There should be no stigma attached to apprenticeships compared with other university degrees. Full-time students don’t get the same work experience.”
“We have strong partnerships with employers and hope to bring through more apprentices as we engage with more employers.” Jim French, a former director at PD Ports and past national chairman of the RHA, was awarded an MBE last year for services to young people in transport. He has taken a keen and personal interest in bringing young people into logistics, mentoring student Alice Briggs while at PD Ports. She went on to take an engineering apprenticeship. He says: “Stockton has also brought in school careers advisers and made them aware of what the sector offers. It isn’t just students who don’t know what logistics is all about. “The problem is that this is a very fragmented industry. A lot of employers like Clipper, Devereux, Prestons of Potto and Dawsongroup have got involved but with the low margins many hauliers work on it is difficult for them to focus on where drivers are coming from. Also £5,000 funding for an apprentice is not enough for smaller operators so we need to get the bigger firms involved.” Duffey agrees: “There are a multitude of obstacles and we can never stop raising awareness among young people. Some companies will pay for the training but if funding is available that is better. “This isn’t just about warehouse staff and drivers – there are many more roles in logistics.”
Grow your own wood
Mark Taylor, head of learning and development at the RHA, is the current chairman of the Local Advisory Board for the Career Ready Programme at Stockton Riverside College, taking over from French who helped set up the Logistics Academy in 2014. Taylor points out: “Most RHA members run 15 trucks or fewer. At regional councils we talk about the skills 10.2.20
Lewis Roe, now studying for a BTEC in IT, took a summer internship with Devereux Transport. He says: “I did an internship in July and August with Devereux Transport after Ruth introduced the idea last year. I had a clear idea of what I wanted and needed work experience on my CV. My interest is cyber security so I was nervous that I wouldn’t get the experience I needed but I learned tonnes about logistics and even helped to set up data systems. “I also helped set up a system for the garage using more up-to-date software and supported the business with its social media. I gained a lot of business skills – at 17 this was my first experience of work. It taught me how to behave in an office and how to talk to people. I have Asperger’s and it taught me ‘how to be human’. My mentor would explain things I didn’t understand and that gave me confidence. “I have since got a part-time job working in stock control at Tesco using the experience I gained at Devereux. That will help me fund a university degree and a place to live.”
shortage but we are not good at growing our own wood. The Apprenticeship Levy is not really suitable for small hauliers.” SRC is a flagship partner with the national Think Logistics programme set up by Abbey Logistics MD Steve Granite to encourage employers to get involved with local schools to raise awareness of logistics as a career choice. “There are lots of meetings with large employers but we need to meet with SMEs too,” says Nichol. “Is it working? When employers take interns or placements it is a great talent spotting exercise. Longs of Leeds took on an intern from a school in Dewsbury and he set up all their social media in a month. So they will take another intern next year. “We need more industry volunteers – the doors of schools and colleges are wide open because they are now benchmarked on their careers advice. We want logistics to be the career of choice rather than people just falling into it as the vast majority do.” Nichol says that taking on students as interns or on work placements is incredibly beneficial for employers, who can learn a lot and often find people they subsequently would want to employ. Emily Clark, for example, from Bede Sixth Form College, first did an internship at PD Ports and is now working for the company while studying for a degreelevel apprenticeship. “She has just bought her first home and says that would not have been possible without the opportunity with PD Ports through Career Ready,” says Nichol. “She is a fantastic role model for the industry.” French adds: “PD Ports had taken on four or five interns in warehousing, transport, port operations and containers. Emily came to us at 16 for four weeks and we had to take her on as an apprentice. She chose an apprenticeship over going to university.” n MotorTransport 15
Trailer rental
T
Going out on the pull
he trailer rental market is very competitive and, in order to succeed, the leading players need offer a wide range of services and the latest technologies. But, at the same time, they have to keep costs down and avoid becoming too specialist. Michael Furnival, MD of TIP Trailer Services in the UK and Ireland, says that operators want to deal with companies who have the scale and resources to provide the right level of equipment and support services. “They are looking for people with the experience and expertise to meet their requirements and the ability to invest in their infrastructure,” he says. TIP has an overall fleet of 17,000 trailers in the UK and Ireland, with the rental market accounting for around 25%. The company also manages maintenance for an additional 13,000 trailers. Servicing, along with tyre, axle and brake parts replacement and roadside assistance, is included in rental agreements. Furnival believes that this, along with technological advances, is becoming increasingly important to customers – TIP has 20 workshops, including new sites in Glasgow and Nuneaton, 200 technicians and 100 service vans. “There has been an increased demand for KPI report-
16 MotorTransport
The demise of some big-name trailer rental players has sorted out the market’s over-supply issues, concentrating the minds of those still in the game, reports Simon Jack
ONE-STOP SHOP: Asset Alliance tries to bundle the needs of customers, said MD Dave Potter (above)
ing for compliance and service provision along with increased digitisation, with telematics influencing customers’ decision-making more and more,” he comments. Track and trace is often embedded in trailers but electronic braking and tyre pressure monitoring are becoming more prevalent. TIP will be introducing its own telematics system – developed by WABCO – in Q2 this year. John Fletcher, MD of Dawsongroup Truck and Trailer, says that a range of attributes is necessary to succeed in the trailer rental market. These include having the right experience, product mix, people and commercial partners. “There are a lot of ingredients. Gone are the days of buying a trailer and simply renting it out to Bloggs Haulage down the road,” he comments. Helping customers meet their compliance responsi-
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bilities, too, is of vital importance. “In many ways we are selling them a good night’s sleep,” he says. Fletcher estimates that pure rentals make up only around 10% to 15% of the company’s trailer operations with very few supplied on a short-term basis. The rest are used to support a core fleet, which could be supplied on a different basis – rental could be for peaks or other operational reasons. “We fit into the customers’ portfolio and augment their fleet. We recognise they operate in a tight marketplace with ever shorter contract lengths,” he explains.
Across the board
Dawsongroup operates in some specialist areas, such as automotive, temperature-controlled and pharmaceuticals where it has expert knowledge and the right equipment but not in others, such as tankers. These services would include supplying both contract hire and rental equipment at each stage of the supply chain. “We look at vertical segments. In automotive, for example, we would be involved in everything from components through to finished products,” he says. Dawsongroup is typical of many rental firms which now supply trailers as part of a mix that can also involve outright purchase or contract hire. This is the case at Ryder, as Adam Fairbotham, director of vehicle outservicing, explains. “We see the rental side as support for our lease customers,” he says. Customers may well need a truck and want a trailer as an addition – with the main reason for the agreement often being the truck. Tony Nuttall, Ryder’s head of leasing, comments: “A typical scenario would be to use rental to improve flexibility for a lease customer. That wouldn’t be for one or two days but for a reasonable length of time.” The company is another with a network of its own workshops and also has some trailer hubs with equipment ready to go if needed by customers. It is also able to supply trailers with a Microlise telematics system. “Customers demand high levels of service from a maintenance point of view and we make sure they don’t suffer a lot of downtime,” Fairbotham says. Similarly, Asset Alliance Group is keen to offer rental trailers as part of a more extensive relationship with the customer. MD Dave Potter says: “We like to bundle trucks and trailers, rigid vehicles and vans all together. We want 10.2.20
ALL CHANGE: Servicing, replacement of consumables and roadside assistance is the new battleground in trailer rentals, says TIP Trailer Services MD Michael Furnival (above)
to provide a one-stop shop for contract hire and rental to support the fleet.” Trailer Resources also believes that making compliance as simple as possible is a key part of succeeding in the rental market. Sales manager Ryan Jones comments: “Operators look for a rental company they can trust with their O-licence and minimise downtime. This can include servicing on site, using an online portal to save chasing service sheets and automated email notification of upcoming compliance scheduling.” The trailer market has been over-supplied in the recent past but, while the demise of a number of leading players has had some impact, there has been no huge upsurge in rental rates, according to TIP’s Furnival. “There has been a bit of a reset in the market. Utilisation is strong currently but short-term rental rates are still not where we would aspire them to be. Trailer prices have increased by more than 10% over the last two years but rental rates have not kept pace,” he says. For many trailer rental firms it is uneconomic to rent out too much of the fleet on a short-term basis, with many preferring a minimum of six months or a year. The vast majority of Asset Alliance’s rental fleet, for example, is usually available on flexible terms for 12 or 24 month periods – most of this fleet is former contract hire equipment that has been handed back at the end of the lease. “When we rent we tend to do it for the medium or longer term. We are not renting out equipment for a week – there’s no money in that for us,” says Potter. Trailer manufacturers believe the rental market is healthy at present which has a beneficial knock-on effect for them. Andy Dodge, MD of Lawrence David, says that one reason for this is that rentals improve flexibility. “Operators and supermarkets are using 12-month rolling contracts more and more, which makes committing to a five-year lease a bit of a risk. So they are turning towards rental options for some of the equipment,” he says.
Best of both worlds
Covering peaks is an important part of the trailer rental market but if hauliers win a new contract and need to order new equipment they may have to rent in the short term while they are waiting for it to be delivered. Lawrence David deals with the large rental companies but does not rent out vehicles itself. “Some of our largest customers are rental companies so why would we want to compete with them?” Dodge comments. However, some manufacturers are involved in ➜ 18
SPECIALIST TRAILER RENTALS
Although many trailer rental companies prefer to offer fairly standardised equipment that appeals to a wide range of customers, some companies believe they can make specialist rentals work if there is enough volume. This is the case at TIP Trailer Services, as Michael Furnival explains. “We run a large specialist fleet with 500 double decks and 2,500 tankers alongside our vanilla fleet,” he says. In addition, the company has access to 3,000 refrigerated trailers via sister company Grayrentals. Trailer Resources does not get involved with specialist equipment such as car transporters and tankers. However, the use of double deckers for standard deliveries is expanding. Ryan Jones comments: “With pallet network volumes rising every year, the double deck market is very consistent and will continue to grow.” However, other firms prefer to supply bespoke trailers through other forms of acquisition. Ryder mainly provides specialist equipment on a leased basis, for example. “We would tend to use more standard equipment for rental,” confirms Adam Fairbotham. Asset Alliance Group also only includes certain types of vehicle in its rental fleet. Dave Potter explains: “We would rent out more generic curtain-siders, box trailers and skeletals and maybe double-deck curtain-siders.” MotorTransport 17
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the rental market. Cartwright Group, for example, has a rental arm which, the company says, allows it to offer a one-stop shop for customers. Rather than adopting a commoditised approach to supplying trailers, the company’s strategy is to discuss the customer’s needs in terms of outright purchase, leasing and rental and whatever mix of other services they require. John Egerton, the company’s sales and commercial director, explains: “It is a collaborative approach and each part of our business can deliver added value from their relationships with the customer.” Phil Rodman, MD of Cartwright Rentals, adds: “One customer might want to use four or five of our products. We try to be flexible to help them optimise their total cost of operation.” He says that the company’s role as a manufacturer
SIMPLE STUFF: Ryder director of vehicle outservicing Adam Fairbotham says its rental business tends to be on standard equipment
ROLL UP: Manufacturer Cartwright has a significant rentals arm
allows it to identify product features which it believes will be popular in the rental market – Cartwright’s rental arm is one of the manufacturer’s largest customers. “We are like some of the truck manufacturers who also run rental companies,” he says. Cartwright’s rental fleet is a mixture of new equipment and trailers previously used in lease and contract hire agreements. Rentals vary from one day up to several years. As well as straightforward boxes and curtain-siders, Cartwright supplies a range of bespoke double-decks, along with urban, wedge and double-deck fridge products. Tiger Trailers is also becoming involved in the rental market, as sales director Darren Holland explains. “Tiger is now launching its own rental division to enable operators to take advantage of having bespoke equipment built for their operations but with the flexibility of having this equipment on a rental basis. This will apply to run of the mill curtain-siders right through to double-deck equipment,” he comments. The company already has some double-deck curtainsiders available. These were the result of a trade-in when a customer took on a fleet of new trailers that increased its payload. However, the new division will now actively build its rental portfolio, supported from Tiger’s head office in Winsford, Cheshire and a satellite site in the Bristol area to service the M32, M4 and M5 corridors. Rental will continue to play an important role in the trailer market. However, those involved – whether they are manufacturing or rental companies – need to have their own strategy on how they interact with their customers and how rental fits in with their overall product offering. n
TRAILER DESIGN The design of trailers is greatly influenced by the demands of rental firms who are in touch with end users. TIP’s Furnival says that the company can identify its customers’ requirements through direct contact and through feedback from its branch network. “We work very, very closely with the manufacturers. It is a collaborative approach – we need them as much as they need us,” he says. Lawrence David’s Dodge says that load security using ENXL-rated trailers and the use of bungee straps to restrain loads have become generally popular. However, the needs of two different loads could be very different. “Load securing is a top priority but it’s not a question of one system fits all. A 18 MotorTransport
rental trailer might be used for baked beans one day and toilet paper the next, so you need to try to find a happy medium,” he says. He says that retailers and 3PLs are less sensitive than they used to be about liveried trailers, creating flexibility when it comes to using trailers for rental. Aerodynamics, however, is a more challenging area. Although fuel reduction might be a key aim, using a curved roof, for example, might be difficult for rental trailers. “It cannot be at the expense of the load. You might lose four pallets by using a curved roof. It depends on the product but with crisps or tissues you might want to max out the volume,” Dodge says.
Richard Owens, group marketing manager of Don-Bur, says trailer design for the rental market is still very standardised. Features such as telematics, geofencing and fleet management software are sometimes included, however, and some rental companies with strong links to certain clients may want extra features. “There are some double-deck trailers sold into the rental market but they tend to be as standardised as double-decks can be,” he adds. Holland of Tiger Trailers says that customers are increasingly demanding features such as lighter trailers and the ability to carry more load. “Hauliers are definitely looking to the manufacturers to give them exactly what they require when specifying their equipment,” he says. 10.6.19
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