Sharp ■ Informed ■ Challenging
22.3.21
PML MD warns of inevitable job losses as higher costs prevent growth
London firms facing ‘mission impossible’ By Tim Wallace and Carol Millett
E N T R I E S C LO S E 9 A P R I L 20 2 1
NEWS INSIDE ‘Protective award’
Canute staff compensation
p3
Driver assault
Police appeal after M1 attack p4
Recruitment strategies
Logistics firms in jobs drive p6
OPERATORS INSIDE Biffa ............................................................. p4 Boughey Distribution ..................................... p8 Canute Group ................................................ p3 Carlton Forest ............................................... p3 Denby Transport ............................................ p6 DHL .............................................................p10 Europa .......................................................... p6 Hazcomp....................................................... p6 Meachers Global Logistics ........................p3, p6 Menzies Distribution.....................................p10 S Walker Transport........................................ p3 TPN .............................................................. p4 Wincanton .................................................... p6 XPO Logistics ................................................ p6 Yodel............................................................. p6
The MD of a logistics firm based near Heathrow has hit out at London mayor Sadiq Khan’s decision to widen the Low Emission Zone (LEZ), insisting it is crippling his business. Mike Parr, MD of family-owned Perishable Movements (PML), based in Feltham, said the European hauliers the firm works with are refusing to come to Heathrow because of “unacceptably high charges”, making his expansion plans “untenable”. The LEZ extension has been in force since 1 March; charges for non-compliant vehicles range from £100 to £300 per day. “We don’t run our fleet of vehicles to collect freight in Europe,” Parr told MT. “It’s also worth noting that the airlines have long-standing contracts with key companies that are difficult to override.” In an open letter to Khan, Parr said that although his trucks were Euro-6 compliant, the decision meant it was now “mission impossible” for PML and would lead to some staff losing their jobs. “The business will have to spend
thousands of pounds in re-training new staff,” he added. “And those that are able to move to a new location will ironically be adding to fuel emissions by generating more traffic. “As a company which is involved in the transfer of perishable – mainly essential food – cargo both into and out of the UK, this move is crippling our business.” Jacqueline O’Donovan, MD of O’Donovan Waste Disposal, added that the extended LEZ, the introduction of the Direct Vision Standard (DVS), and plans to extend the Ultra Low Emission Zone (ULEZ), were together a “total car crash”, forcing hauliers out of London. She warned hauliers were turning their back on the capital
and that the shortage would only get worse once the London ULEZ is extended on 25 October to create a single larger zone bounded by the North Circular Road (A406) and South Circular Road (A205). O’Donovan said: “Companies we would normally hire are no longer available to us because they don’t want to come into the Low Emission Zone or because they have no clue as to how to get a DVS permit. The processes are far too complicated; the DVS website is absolutely atrocious and navigating it is horrendous.” A spokesperson for the mayor of London told MT: “Sadiq is proud to be a pro-business mayor and research from the CBI has shown that cleaner air could boost the UK economy by £1.6bn per year.”
MAJOR INVESTMENT: Maritime Transport has placed an order for 275 new Volvo FH with I-Save tractor units, becoming one of the largest operators of the models in the UK. The move follows a recent order by the Felixstowebased company for 50 current-generation FH with I-Save units, which Maritime said had now become its most fuel-efficient 44-tonners. Paul Heyhoe, Maritime Transport fleet director, said: “We have had 40 on the road for a few weeks now, and they are performing really well, going further on a full tank than any other 6x2 tractors on the fleet. The final 10 will enter service this month, and then all eyes will be on the new models arriving later this year.” Volvo Trucks’ product development team has updated the software on the new FHs, which it said provided additional fuel savings. A more aerodynamic design and improved map-based I-See technology also help boost performance.
Viewpoint: Zero emissions p11 Marketplace p14 Insurance: Cargo risks p26 Laurence Drake interview p28 MT Awards winners p32-35
SHOW HOW YOUR BUSINESS IS GOING IN THE RIGHT DIREC TION E N T E R N O W AT M TA WA R D S . C O . U K
E N T R I E S C LO S E - 9 A P R I L 2021
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Employees given compensation after failure to consult on redundancy
‘Protective award’ for ex-Canute staff By Chris Tindall
The United Road Transport Union (URTU) has won what it terms a ‘protective award’ for staff made redundant when Almtone-owned Canute Group ceased trading in 2018. Following an employment tribunal hearing last month, the union said it had been successful before a judge in showing that Almtone had failed to consult former employees at its sites in Coventry, Retford, Lancaster and Newport about their looming redundancy. It added that URTU members had been made redundant between December 2018 and January 2019. Brian Hart, URTU national officer, praised its legal team,
saying: “They had to overcome several difficult legal hurdles during a long-standing and protracted legal process in order to bring this matter before an employment judge.” ■ Redditch-based S Walker Transport, which entered
administration a year ago putting 39 employees out of work, has enough funds to pay them all the money they are owed, the firm’s administrators have confirmed. The company’s unsecured trade creditors should also receive a dividend.
Meachers buys AFS Haulage to boost international work Meachers Global Logistics has acquired fellow Hampshire operator AFS Haulage in a move it believes will boost its international transport services. The deal was given the green light by AFS Haulage’s MD, Andy Seagrave (pictured, right), who said: “I’ve been searching for a
long time to find someone to take over and look after the business and Meachers is the perfect fit. “We are both solid companies with similar cultures and I have every confidence that the Meachers team will handle the haulage requirements of our customers expertly as it is incorporated into its main business.” AFS employees will join the Meachers team and over time it is anticipated that the AFS brand will come under the Meachers banner. Meachers MD Stuart Terris (pictured, left, with chairman
Bob Terris) said: “This allows us to expand our international freight and transport logistics services to offer customers even more industry knowledge and expertise when providing solutions for freight forwarding, supply chain management, UK warehousing, distribution, training, transport and contract management. “Not only will the AFS Haulage acquisition enhance our quality service, with more equipment such as flatbed, HIAB and groupage, it will also allow us to stay ahead of market demands, particularly after the pandemic.”
HGV driver jailed after M40 crash fatality An HGV driver has been jailed for three and a half years after causing the death of an RAF helicopter pilot who had parked up on the M40 to help out following a collision. Malcolm Clarkson pleaded guilty to causing death by dangerous driving after he drove into the back of Scott McConnell’s car between junctions 12 and 13 on 19 November 2019. McConnell had stopped to assist after two other vehicles were involved in a collision. Warwick Crown Court heard that McConnell, who was 26 and had just qualified as an RAF pilot, was on the phone to Warwickshire police when his car was struck by Clarkson’s Scania at 61mph. A forensic collision investigation report concluded that Clarkson had been talking on a hands-free kit moments before the collision and he braked just 24m, or one second, prior to impact. Police staff investigator Liam Ryan said: “This is a particularly tragic case as Scott was trying to protect another driver when he was killed. There is no doubt that being on the phone hands-free moments before the collision distracted Clarkson to the extent that he was unable to react to the road ahead.” Clarkson was also banned from driving for six years and nine months and must take an extended retest.
Carlton Forest branches into Yorkshire after bolstering its storage capacity A 3PL provider working with major blue-chip businesses has secured two new sites in just three months. Carlton Forest 3PL, a privately owned company based in Worksop, north Nottinghamshire, has branched into south Yorkshire, acquiring two units near Bawtry – one of 95,000sq ft and one of 122,000sq ft. 22.3.21
This has taken its overall capacity to over 800,000sq ft of racked and bulk storage. MD Adam Jones (pictured right with divisional operations manager Alistair Plant) commented: “These additional sites have allowed us to work with even more customers’ 3PL, storage and supply chain requirements across product
sectors including furniture, retail, household, and ambient food and drink.” It is anticipated that further acquisitions will be made in the next few months. Already, 25 long-term and 50 short-term jobs in the area have been created as a result of the investment. MotorTransport 3
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Asset Alliance heads to Manchester Increasing demand and a growing customer base has prompted a move by CV supply specialist Asset Alliance from Leeds to an 8-acre site in Manchester. The location on the Stakehill industrial estate in Middleton offers easy access to the M60 and M62 and complements the group’s existing depots in Wolverhampton and Newmains, as well as its new
and used truck and trailer base, Hanbury Riverside, near Ipswich. Brian Kempson (second from right), Asset Alliance Group’s truck and trailer sales director, said: “We want to have the best possible facilities to serve our customers. “We have exciting plans for this year and ambitious growth targets and this move has already helped us towards achieving that.”
Witness call over M1 attack that left victim needing hospital treatment
TPN has claimed it is “considerably ahead” of competitors, with four trailer loads per day going to Dublin and three to Belfast with no delays in service. The pallet network, part of Eddie Stobart Logistics, said too many logistics operators were underestimating the level of support customers required and its investment in making IT systems “customs-functional” was now paying dividends. Ian Large (pictured), TPN head of commercial services, said: “We have customs-integrated IT systems and we’ve set up extensive support options for customers, including a dedicated central team and brokerage support.” TPN said it was working with partners particularly in areas such as SPS [sanitary and phytosanitary] requirements, as they were proving to be challenging for customers who failed to realise their products fell within the rules. The RHA said hauliers were still facing serious issues travelling to Ireland via Welsh ports, with documentation problems causing a headache for exporters and resulting in long delays. But Large said TPN consolidated all its SPS products into a specific load, which could be inspected and passed for a smooth clearance with no slowdown in trade. 4 MotorTransport
Leicestershire Police are appealing for witnesses after an HGV driver was allegedly subjected to a racially aggravated assault following an altercation at a red light at junction 22 of the M1. Officers said the lorry driver was attacked by two occupants of a silver panel van and was taken to hospital with multiple injuries. A spokesperson for Leicestershire Police said: “Officers are appealing for
witnesses in relation to an assault that took place on Monday, March 1, on the junction 22 slip road of the M1 southbound. “At around 5.30pm, two vehicles were stopped at the red lights on the slip road when an altercation took place. “The lorry driver was assaulted by the two occupants of the van and suffered multiple injuries as a result.” Two men, aged 34 and 25, were
arrested on suspicion of causing racially aggravated actual bodily harm. Both have since been released while investigations continue. n Galpharm Paracetamol worth £30,000 was stolen from a lorry parked on Elmhurst Park in Dodworth, near Barnsley, between midnight and 5.30am on 9 March. The unique batch numbers, PYA0050A and PYA0051A, are written on the boxes.
Biffa pledge brings electric fleet to city Photo: Shutterstock
TPN insists IT strength easing Irish border woes
Cops probe racial assault on driver
Hauliers freed from Manston stop Services for EU-bound HGVs at Manston Airport are being suspended in what Kent Police describes as a first step towards “business as usual” on the county’s roads, following the end of the Brexit transition. From Sunday 21 March, freight heading for the Port of Dover will no longer be directed to attend the DfT site at the airfield, nor will the site offer Covid-19 tests or customs checks for hauliers. The DfT said these services could be reactivated at short notice if necessary. All HGVs will instead access the Operation Brock traffic management system between junctions 8 and 9 on the M20 coastbound carriageway, with one lane being used for Eurotunnel and the other for the Port of Dover. Any HGV drivers trying to avoid the new system risk enforcement action.
Biffa has put 27 new zero emission electric refuse collection vehicles (eRCVs) on the streets of Manchester, in partnership with Manchester City Council, which is investing £10m in the initiative. The move is part of Biffa’s sustainability strategy, dubbed ‘Resourceful and Responsible’ which includes a pledge to cease buying fossil-fuelled vehicles by 2030. Manchester City Council is one of the first local authorities to transform its fleet with electric refuse collection vehicles following two years of successful trials. Biffa has already cut its CO2 emissions by 65% since 2002 and is targeting a further 50% reduction by 2030. 22.3.21
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Logistics giants looking to make the most of post-pandemic recovery with new jobs drive
Recruitment takes centre stage A range of the industry’s biggest operators have unveiled their recruitment strategies for the year ahead. The companies outlined their plans having agreed to join a new MT panel, set up to discuss the biggest issues facing the sector. Europa is recruiting within specialist divisions of Europa Road, Europa Air & Sea and Europa Warehouse. It currently has 50 vacancies across the UK. It is also recruiting for Europa’s RAPID Career Development Programme, which gives schoolleavers and graduates the opportunity to become part of its Europa
Road sales team at branch sites. Wincanton chief people officer, Sally Austin, said the company’s recruitment policy was aligned to growth opportunities in e-commerce, the public sector and infrastructure programmes. “Furthermore, we will be recruiting to add new capabilities, such as digital skills, that support innovative implementations,” she said. “Among our driver colleagues we will look to recruit from a broader pool. For Wincanton, this means investing in people who might not yet have acquired their specific licences. Our Apprentice Driver Licences Acquisition
programme has seen a huge amount of interest.” Meachers Global Logistics is about to increase recruitment on its cruise line activity, which has been suspended for the past year. It is also recruiting drivers in the transport division as volumes increase and has just acquired AFS Haulage, which will require additional staff. ArrowXL is recruiting 100-plus new drivers and 100-plus new warehouse staff. Drivers required are: 3.5 tonne, 7.5 tonne and LGV C+E. Hireco group chief executive James Smith revealed it was strengthening its administration
Sector blasts ‘failed’ HGV testing review
Operators urged to back 25-metre trial Haulier support for a trial of 25-metre artics on UK roads is gathering momentum, but more operators need to voice their support if the government is to give it the green light, Kevin Buck, transport consultant and MD of Hazcomp, has warned. The call follows news last month that Denby Transport has been given the green light to use its Eco-Link B-Double road train as a demonstrator, ahead of a wider trial. A broad range of logistics firms operating in a variety of sectors have already voiced support for the trial including
FreshLinc, Metcalfe Farms, White Logistics and Storage, Reynolds Logistics and Urban Transport London. In addition, a survey requested by the DfT as evidence of industry appetite for the vehicle has revealed significant support, with 80% of respondents stating their intention to adopt it. The survey targeted the 3,000
firms on the DfT’s longer semi-trailer trial. “Initial adoption of around 12% of a haulier’s trailer fleet for these vehicles falls right in the ‘Goldilocks’ zone of initial forecasts of between 10% and 15% adoption,” Buck told MT. “Nearly all would adopt the 25-metre 60-tonne vehicles, as well as, and not instead of, longer-semi trailers.”
Photo: Shutterstock
Missing driver pay lands Yodel with tribunal claim
6 MotorTransport
department and IT team: “We are on a recruitment drive within the service centre, but we also have openings for senior roles within the business,” he said. “Our plans for future technology and alternative energy assets are at the core of where we think our growth will come.” XPO Logistics confirmed it was planning recruitment in its management, drivers and warehouse divisions, while the Cullimore Group said if all quotation requests turn into work over the next few weeks, the company would be looking for HGV drivers and quarry operators.
A dispute over driver wages has resulted in the GMB union launching a tribunal claim against delivery company Yodel. GMB says the claim goes back 20 years and amounts to £250,000 in unpaid night-shift wages. The dispute arose after a group of 18 night workers found their pay packets short because their overtime allowances were missing.
GMB estimates up to 500 Yodel workers could have been underpaid by up to £1,000 each. Lawyers working on the case say it is “likely to have far-reaching implications”. A Yodel spokesperson said: “We are surprised by the GMB announcement. We have a small claim affecting a small number of colleagues and we are in the process of finding a resolution.”
The government missed an opportunity to shake up HGV testing after a major review into the service failed to acknowledge reform was needed, according to Logistics UK. Hauliers could now also see HGV test fees hiked to help fund an increase in DVSA testers. The industry had welcomed the review when it was announced last year by Conservative peer Lord Attlee. At the time, Lord Attlee pointed to the existence of accredited private sector testers for trains, aircraft and cranes, and questioned why the same testing regime should not apply to HGVs and trailers. In addition, the industry has recently expressed frustration that the HGV annual test delivery model had failed to show resilience during the pandemic. James Firth, head of road freight regulation policy at Logistics UK, said: “Heavy vehicle testing needs wholesale reform and it is a shame the Department for Transport missed this opportunity to pave the way for a more effective and efficient system.” Stephen Smith, president of the Authorised Testing Facilities Operators Association, called the review a “whitewash”. 22.3.21
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ADVERTORIAL
The future is in all of our hands
Tim Campbell is a leading commercial vehicle/ electric fuel cell consultant
By Tim Campbell In this series of articles looking at the potential future of zero emission trucks, it was my intention to start a debate around how we move forward. One major issue we have not yet addressed is how the government is supporting the road transport industry in this transition. Currently we have the government’s ‘Plug in Vehicle Grant’ (PiVG), which covers 20% of the purchase price for large vans and trucks up to a maximum of £20,000. However, this applies to the first 200 qualifying vehicles only, and is limited to 10 trucks per customer. After the 200 limit is reached, the maximum grant rate reverts to the van maximum of £8,000, meaning there’s just £4m available exclusively for heavy trucks. Compare this to our European neighbours. France awards €50k for any electric or hydrogen commercial vehicle and up to a further €50k to write the value of an EV down. The Dutch system allows up to 40% of the incremental cost for EV versus diesel to be claimed back under a €114m fund. In addition to this, Amsterdam offers a further €40k for vehicles operating in the city and the province of Gelderland offers €27k. Perhaps the simplest solution is found in Switzerland, which exempts EVs from road tax, equating to a £90k saving over seven years over a Euro-6 26 tonner. When it comes to charging infrastructure, further grants are available. In the UK, the £950m Rapid Charging Fund (RCF) from the Office for Zero Emission Vehicles hopes to future-proof charging capacity by upgrading grid connections along England’s Strategic Road Network. Yet there is no mention of the powerful chargers needed for trucks and coaches. As an industry we need to be counted and make our voice heard in government if we are to kickstart the transition from diesel to electric for distribution. Electric vehicles, particularly trucks, can help decongest our cities by operating almost silently at night, unlocking a 24-hour delivery system, but there is a cost to doing so. That the private sector will need to invest in the road transport industry is a given, but we need the government to invest too. We can expect many statements about transport decarbonisation ahead of the COP26 climate conference in Glasgow in November. However, we need concrete actions and incentives that support the transition to electric vehicles, a serious commitment to a national electric infrastructure strategy and specific support for commercial vehicles. The whole industry shares the ambition of a zero emissions transport sector, but we can’t do it on our own. It’s time for the government to show how green it really is.
8 MotorTransport
Tip-ex/Tank-ex packed with great new content
Show returns with fresh face Tip-ex/Tank-ex 2021 will move to September, in order to comply with recently announced government guidelines managing the route out of lockdown. The show, which will once again take place at the Harrogate Convention Centre, will now run from 30 September to 2 October 2021. In addition to the usual indoor and outdoor exhibition stands, the event will include three days of industry seminars.
A Transport Managers’ Conference will be held on Thursday 30 September, and the first Transport News Northern Rewards Breakfast will take place on Friday 1 October. Another new addition for 2021 is a drivers’ day, which is planned for Saturday 2 October.
FIVE ALIVE: Cheshire-based Boughey Distribution has sealed a five-year agreement with Thomas Hardie Commercials for the supply of Volvo’s new-generation FH model, which will be in production from next month. Boughey Group made its decision after running year-long fuel trials, operating the current Volvo FH model alongside two other manufacturers’ vehicles. The new contract, worth around £11m, will be for the supply of 127 vehicles on a two-year roll-out programme, with the first 25 being delivered by the end of May.
Driver training wins CPD approval Road Skills Online has announced that, following recent assessment by the CPD Standards Office, its drivers’ Professional Development Plan (PDP) is now recognised as four hours of CPD training for each year of eLearning completed. Road Skills Online said professional development in the freight transport sector was being increasingly seen as an effective way to reduce costs, minimise collisions and improve road safety, but finding time to sit down with drivers was harder than ever.
Its eLearning platform delivers monthly, industry-recognised ‘Toolbox Talks’ direct to drivers at a time of their choosing. Offered by RTM Digital, the 36-month PDP covers everything from personal health and wellbeing through to customer service and teamwork. Alongside the numerous cost and safety benefits, it provides a ‘tick in the box’ for FORS D4, S5 and G5 and DVSA Earned Recognition Section 7.2, as well as O-licence compliance. 22.3.21
2021 Events Convoy Cymru 15/16 May Convoy on the Plain 3/4 July Commercial Motor Golf Day 22 July Convoy in the Park 21/22 August Motor Transport Awards 2 September Freight in the City Expo 28 September Tip-ex Tank-ex, Harrogate TM Conference 30 Sept Northern Rewards 1 Oct Truck Drivers’ BBQ 2 Oct Transport News Scottish Rewards 3 December Commercial Motor and Truck & Driver Awards 9 December
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Firm will remain the official logistics partner for the Formula One World Championship
DHL wins race to extend F1 deal DHL has extended its long-standing partnership with F1, ahead of the FIA Formula One World Championship. The deal sees DHL remain the official logistics partner of F1, for an undisclosed period, taking responsibility for shipping race cars, fuel, oil and equipment for the racing teams. DHL has been the official logistics partner since 2004. Arjan Sissing, DHL global head of brand marketing, said: “We are proud to continue our unique partnership for the years to come.” This year sees the challenge of three triple headers, with three
races held over three consecutive weekends. Paul Fowler, global motorsport chief of DHL Global Forwarding, said: “An intercontinental triple header is where logistics is really put to the test. “Even during the race, before the chequered flag is waved, the DHL team start dismantling and stowing equipment. “Behind the scenes, we give our all to ensure that the teams and drivers can perform at their best, and that racing fans everywhere get to see the sport they love.” With the extended partnership, DHL will again offer two awards
– The DHL Fastest Lap Award and the DHL Fastest Pit Stop Award, for special achievements by drivers and teams.
This year’s awards will be presented to the winners in Abu Dhabi on the final day of the racing season.
Menzies Distribution lands five-year contract extension with Ultraframe The purchase of Bibby Distribution by Menzies Distribution in December last year is already paying dividends after the new addition – now named Menzies Distribution Solutions (MDS) – landed a five-year extension to its contract with home extension specialist Ultraframe. The new agreement will see MDS expand factory-to-warehouse shunting, outbound distribution of finished goods and collection of stillages, using the logistics group’s bases in
Glasgow, Biggleswade and Avonmouth. Menzies has 31 employees on-site at Ultraframe’s base in Clitheroe, Lancashire, as well as a fleet of 60 trucks and trailers that are working on the contract. Ultraframe and the former Bibby Distribution first started working together in 2005. Last year, the haulage firm achieved delivery performance of 99.2% for Ultraframe, against a target of 98.5%.
Mark Davies, MDS business unit director for full load transport, said: “We’re delighted that continuous improvement in our service has delivered a significant contract extension with a valued partner. “This new agreement will be supported by further investment from MDS in its fleet for Ultraframe and we look forward to helping the company to further success in a very exciting market.”
Focus: apprenticeships Logistics sector must step up and make most of training initiatives
Skills (finally) are top of the agenda The Chancellor has made technical education a pivotal feature of the Budget and the nation’s recovery after declaring that “protecting, creating and supporting jobs is my highest priority.” He announced the extension of the apprenticeship incentive from 1 April to 30 September 2021 and an increase in the payment to £3,000 regardless of the age of the apprentice. This is in addition to the existing £1,000 payment the government provides for all new 16- to 18-year-old apprentices. In addition, he unveiled further support for traineeships with an additional £126m to create 40,000 more traineeships, funding high-quality work placements and training for 16- to 24-year-olds in the 2021/22 academic year. This supports the ‘Skills for Jobs’ further education White Paper recently announced by education secretary Gavin Williamson MP. This paper reinforced the role of employers at the heart of the skills agenda. Paul Hudson, CEO of System Group (a member of Logistics Skills 10 MotorTransport
Network), recently compared the take-up of apprentices in the logistics sector today with other sectors such as hospitality, retail, health and social care five years ago. These sectors absolutely embraced the opportunity that apprenticeships offer and have benefited hugely from early adoption both economically and culturally. With only 15% of the logistics industry Apprenticeship Levy payers fully utilising their levy last year, Hudson can legitimately question why our sector has been reluctant to embrace apprenticeships. There is real opportunity to create meaningful career paths in the logistics sector, from those displaced by the pandemic to those looking for career development and a challenge. While it can appear a complicated task, with jargon and changes to policy, there are plenty of people to give advice and help. If you want to take the next step, partner with providers that offer solutions to workforce development and not a list of courses. Partner with providers that can offer advice on driving a return from the Levy and training spend. It would be a great shame now if opportunity was missed to create a platform to address the known skills gap all over the sector. Part of the role of the Logistics Skills Network is to impartially introduce the right training provider to offer the best solutions for any employer requirement. David Coombes, chairman, Logistics Skills Network 22.3.21
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Focus needed on new recruits T Steve Hobson Editor Motor Transport
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22.3.21
o paraphrase the Bible, like the poor, it seems that the driver shortage will always be with us. Quite how various people come up with figures of a 40,000 to 50,000 shortfall of active drivers out of a population of 370,000 is something of a mystery bearing in mind there are no noticeable empty supermarket shelves. But with two million people working across logistics – many of whom have traditionally come from Eastern Europe – the industry will always need a strong pipeline of new recruits. So what does transport and logistics offer young people who have decided they don’t want a £30,000 debt for the dubious privilege of three years of study at university? Is there a well-structured, fully funded training programme leading to a variety of rewarding, well-paid careers? Or is there a confusing patchwork of schemes run by
individual companies – many of which are, to be fair, excellent – that candidates have to navigate with little help or support? There are good schemes out there such as Think Logistics and the RHA’s Road to Logistics, and the Logistics Trailblazer Group is doing sterling work trying to sort out workable, properly funded apprenticeships. But what the industry is crying out for is a central organisation that can offer anyone who knows next to nothing about logistics advice and an easy way in, with free training and development, leading to a secure, well-paid career. The end of the government furlough scheme later this year is going to see a lot of people lose their jobs in sectors like hospitality that will take years to recover from the pandemic, so this could be a once in a generation opportunity. Let’s not waste it.
Why ‘low carbon’ is no longer enough S Neil Wallis Spokesman, Zemo Partnership
ince the invention of the internal combustion engine (ICE), change in transport has never been so fundamental or so rapid as it is today, driven as it is by the risks linked with climate change and air quality and the UK government’s commitment to the target of net zero greenhouse gas emissions by 2050. It has been increasingly apparent to us at the Low Carbon Vehicle Partnership for some time that ‘low’ is no longer enough in terms of vehicle emissions. If we are to meet this 2050 commitment, the road transport sector needs to achieve near-complete decarbonisation. This is not just a ‘vehicle’ challenge. It will require the decarbonisation of energy supplied for transport and of its transmission, storage and delivery. So the new, shared objective for us all is ‘zero’. To reflect this aim, the LowCVP has re-branded to become Zemo Partnership, with a new visual identity, new website and heightened ambition. What hasn’t changed is the core principle of partnership; working closely together and not just focusing on vehicles but across sectors is now more vital than ever, if we are to get to transport zero. With the 2030/35 ICE phase-out date for cars and vans confirmed, the prospects for smaller vehicles are clear, but the road
ahead for commercial vehicles is still murky. Battery electrification for certain applications has made headway, but there are strong advocates of hydrogen-based solutions or e-highways and – in the interim, at least – sustainable, renewable liquid fuels. Transport is one of the most complex challenges for decarbonisation. Key to how this plays out will be the policy framework set by government. This will become clearer later this year with the Transport Decarbonisation Plan due in spring. And plenty of other linked policy developments are in the pipeline. The recent budget included some ‘green’ measures, but few relating directly to road transport. The freeze in fuel duty for the 11th year in a row is unhelpful in terms of the decarbonisation agenda, though we understand the pressures behind this decision. As alternative, cleaner propulsion systems enter the mainstream, expect to see changes – quite probably fundamental – in the systems of vehicle taxation that will incentivise take-up of lower and, ultimately, zero-emission choices. The journey on the road to zero is now truly underway and we are on it together.
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12/03/2021 10:09
Marketplace New Birmingham dealership opens its doors on the site of former steelworks and plastic factory
Midlands opens in Brum Midlands Truck & Van’s new Birmingham dealership has opened its doors to customers, following a £7m development of the Smethwick site. The new dealership, built on a 7-acre location that was formerly a steelworks and plastics factory, has increased space for new and used truck displays, as well as more parking for customers. MD Steve Hunt declared: “This project has underlined our commitment to keeping businesses moving. We’re very proud of our new dealership, which is right up there with the best in the industry. “We’ve already received a lot of positive feedback on the amount
Dawsongroup unveils regional super-hub Dawsongroup has opened its new regional super-hub in Avonmouth, combining office space, workshops and truck and trailer storage. The 6-acre site brings together four Dawsongroup businesses that previously operated from three separate locations within a 10-mile radius of each other. Freya Dawson, group property director, said: “The build programme started the same week we went into the first national lockdown. I presumed that everyone would be told to down tools and retreat. However, remarkably, this was not the case. The construction industry has continued throughout this last year and the only major delays we encountered were in relation to obtaining certain materials and the lack of manpower on site at times, due to social distancing measures. “Our conscious investment into Avonmouth provides a gateway for businesses in the south-west and the surrounding areas and will support the growing network of Dawsongroup customers in the region.” 14 MotorTransport
of room we have here, as well as on our excellent location close to the M5 and M6 motorways,” added Hunt. Midlands Truck & Van is the first dealer group in the Mercedes commercial vehicle network to
introduce a new customer experience concept which is already in operation at a number of Mercedes-Benz car outlets. Visitors to the site are greeted by dedicated hosts, then introduced to other members of the team to
discuss anything from a sales enquiry to a service booking. The site has new drive-through workshops and incorporates an authorised testing facility (ATF). There is also an ADR bay and a lane dedicated to the installation and calibration of tachographs. In addition, there are a further 11 24m truck bays as well as eight van bays and a 650sq m parts department providing 25% more capacity. The Smethwick opening marks the completion of a major programme of investment in its network by Midlands Truck & Van, with a £3m van site in Whitley, Coventry as well as a purpose-built site in Willenhall, Wolverhampton costing £4m that opened in 2015.
Fresh logo to differentiate RH Commercial Vehicles Renault Trucks dealer RH Commercial Vehicles has unveiled a new logo for its five sites and 200-strong truck rental fleet. The update replaces the previous branding, which is associated with the freight and logistics group RH Freight. Nigel Baxter, RHCV MD, commented: “We are a
completely different business today from that which was a subsidiary to RH Freight, and it is time for a fresh new look which better reflects our business and our continuing and ambitious growth plans. “The new logo is an evolution, not a revolution, and remains sympathetic to our heritage. We have retained the
original red, but with a look which is now streamlined and more contemporary. “It is also vitally important that the new branding complemented both our partners’ – Renault Trucks and Isuzu – logos.” A new website featuring the revised logo is due to be unveiled next month.
Scania puts £10m into a greener Scottish headquarters Scania has invested £10m in a new flagship site and regional HQ in Scotland. The 4,000sq m development is on a 7.8-acre site at Eurocentral and replaces the existing site in Bellshill four miles away. Built to Scania’s global dealership template with modern workshops, parts department, office space and secure parking, it includes a number of sustainable initiatives and has been designed with future transport in mind. All energy usage will be fossil free with a high-efficiency underfloor air-source heating system and roof-mounted energygenerating photovoltaic panels as well as water recycling in its vehicle wash. The site will also be able to maintain and charge Scania’s range
of new plug-in hybrid (PHEV) and full battery electric (BEV) trucks. “Scotland has been a key market for Scania since we began importing trucks into the UK back in the mid-1960s,” said Martin Hay, MD of Scania (Great Britain). “Our continued sales growth and exceptional levels of service have seen our Scottish network grow from a single location into eight professional service centres today.
“The new Eurocentral facility has been designed to dramatically increase capacity to ensure we can continue to support our customers and reduce our carbon impact for the decades to come.” The site is due for completion in Q4 this year and will have 12 workshop bays, four Balzer inspection pits and an ATF lane, while the fully concreted yard will have secure parking for 50 trucks and trailers.
22.3.21
Interview: Asset Alliance
motortransport.co.uk
Used sales thriving Factory shutdowns, Brexit regulations and longer lead times have seen many buyers turning to the used truck and trailer market, reports George Barrow
N
ew truck buyers forced to buy used trucks due to availability issues during the pandemic will likely continue to do so, according to Asset Alliance truck and trailer sales director Brian Kempson. “People have got into the habit of buying used vehicles. That will hopefully be the norm and will become their choice over new as we can demonstrate there is more value,” explains Kempson. A combination of factory shutdowns, Brexit pre-buying and longer lead times has forced many buyers to turn to the used market, particularly in the trailer market, in order to secure new or replacement vehicles. Concerns over the future state of the economy have played their part too, with Kempson seeing more customers looking for less costly options. “People are looking for nearly-new and used vehicles, as opposed to the commitment of a new vehicle. The availability of the new vehicles has also helped – availability is short, and a used vehicle is still seen as a bargain – if it’s two or three years old, it’s still seen as having plenty of life.” Having a sizeable contract hire fleet to call upon has meant that while some dealers have struggled to keep 16 MotorTransport
the flow of desirable stock coming, Asset Alliance has been able to manage its contract returns to ensure the used demand is met. “Stock is very tight,” continues Kempson “We’re predominantly Mercedes-Benz and DAF from here and we’re fortunate that because Asset Alliance has such a big fleet, we’ve got a good supply. And with the relationship within the business with end-of-contract vehicles coming in, it has given us the opportunity and any stock that was standing we’ve been able to move. As a business we’re placing some significant new orders for our customers so that we can then take them into our used stock.”
MAIN MAN: Brian Kempson, truck and trailer sales director, Asset Alliance Group
Christmas rush
Kempson acknowledges that stock levels have been “very tight” throughout the pandemic, particularly in the trailer market. The Christmas rush was particularly challenging as demand was high throughout the summer months and that meant fewer trailers returning to market in time for the Christmas build-up. Lead times for production in trailers also suffered, with lockdowns and furloughing of staff, with UK manufacturers taking many months to bring lead times back to normal levels and some European manufacturers still giving longer than normal 22.3.21
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build times. With thoughts of Christmas 2021 now closer in the minds of operators than the memories of Christmas 2020, the market for trailers still remains buoyant. “With trailers you always get that Christmas rush and we expect to see them back in the January/February window, but we haven’t seen the quantity back that we’d normally expect. There’s been a real squeeze, and for curtainsiders, the desire for them has never eased. For box trailers there has been a bit more, but we haven’t seen the return of rental vehicles.” Having previously been MD of dealer group Roanza, Kempson hadn’t long been in the job at Asset Alliance before the full force of Covid-19 was felt with the first UK lockdown. Having joined to grow the group’s sales propositions and remarketing capabilities from the Wolverhampton head office, he was suddenly faced with a whole new challenge. A plan to build satellite sites in the north saw Kempson working out of a newly established Leeds depot. The small team has, however, soon outgrown its site which was based in the yard of Romac Logistics, and when the haulier opted to move to a larger site near Manchester, Asset Alliance decided to go with them, transporting their northern depot from Leeds to Manchester. The new 8-acre site, still shared with Romac Logistics, is on the Stakehill Industrial Estate in Middleton with easy access to the M60 and M62. “I came in with the task of building some sub-sites with rental that would be used to support the core sites. It [Leeds] took off pretty quickly and we sold more than we expected, and it also worked as a good satellite for the rentals. We were tenants in Romac Logistics’ yard, who decided they would relocate, so we went with them. We’d already set the local people up with suppliers for maintenance and felt like there was a greater opportunity in Manchester. We can now get up to 50 vehicles on-site and we’ve done some fairly big deals – one deal for 10 nearly-new tractor units and quite a few other trailer sales,” explains Kempson. “We are dealing with increasing demand and a growing customer base in the north and we want to have the best possible facilities to serve our customers. We have exciting plans for this year and ambitious growth targets and this move has already helped us take steps towards achieving that. Our reputation within the industry is for providing customers with exceptional standards of service, flexible finance packages and high-quality vehicles, and this new base reinforces those standards.” The Manchester site has helped spread the reach of Asset Alliance with the group’s depots in Wolverhampton and Newmains, as well as Hanbury Riverside, near Ipswich. Joining Kempson at the new site is sales executive Jenna Williams, who had previously worked at Roanza, vehicle preparation assistant Lewis Bradley and fleet management assistant Ellie Kempson.
of the difficulty of procurement – extend some of the vehicle contracts, so we were happy to extend,” he says. “But there’s more optimism now, which is why we’ve gone out and ordered a number of vehicles and will be taking the others back. If the vehicles stay out, they can become less saleable – if they start to get four or five years old, the market changes and it’s not as profitable.” But the market is constantly changing, and it is Kempson’s job to keep an eye on the current as well as the future prices his expanding portfolio of assets will command: “If we’d have been having this conversation 12 months ago, a two- or three-year-old truck is the ideal truck, but the fact they’ve been pushed on [with extended rental contracts] hasn’t really affected the market or the saleability. A 500,000km or 600,000km vehicle would have been hard work to sell, whereas now it’s acceptable if it is four or five years old – as long as its maintained, there’s no issue with it and people are even willing to take higher mileages on a Scania, Mercedes or DAF.” Kempson points to the nation’s collective new interest in online shopping as the primary reason for the demand, but while times are good now in the used truck business, he warns that the situation may only be temporary.
Online purchases
“We’re all sat at home thinking ‘What should we buy today?’ I know I’m buying significantly more on the internet than I was. There’s no question the number of truck and trailers and vans has increased to the detriment of our retail shops, but it’s certainly helped the transport sector. If there’s anything good to come out of it, it’s that there are more trucks and trailers on the market and more recognition for what the haulage industry does for the UK. “I see as we come out of Covid and restrictions there being some downturn as people take stock of their business position. But I think we’ve got into the habit of internet purchasing and because of this we’ve brought internet purchasing forward by five years and that will continue – and the demand in the haulage industry, contract hire and sales of used vehicles will as well. While I see a possible slowdown in Q3 of this year, Q4 always picks up, and when people get into the habit of buying used vehicles, that will hopefully be the norm. I don’t think the industry has anything to fear in terms of what Covid has brought us; it’s given us the reputation we deserve.” n
RELOCATION STRATEGY: Commercial vehicle specialist Asset Alliance Group has moved its northern England depot from Leeds to Manchester, to provide an improved hub for sales, rental, leasing and finance customers
New customers
“The Asset Alliance marketing [of the new site] has worked well, and we are getting enquires come through the rest of the business as well. We’re fortunate that there’s a significant amount of business in the North West. We’re closer to it now, so able to deal with those customers. It’s also great from a rental perspective as they’re newer customers,” says Kempson. New rental customers ultimately mean more used stock in the months or years to come, and by expanding into a new region, Asset Alliance is not only increasing rental outputs, but also getting closer to its customers wanting used vehicles. A larger rental fleet also enables them to be more flexible when it comes to managing returns, especially now as the changing market and economy means that some operators are looking to hold on to their units. “The average contract age is three years, but we have seen a lot of people last year – and it was a policy because 22.3.21
MotorTransport 17
Insurance
Protection at a premium Cargo theft has been rising while operators have been dealing with disruption to business. How have insurers responded to the challenge? Malory Davies reports
T
ransport operators have faced a perfect storm over the past year with the combined impact of the Covid-19 pandemic and the uncertainty caused by Brexit disrupting business and leading to a rise in cargo theft. So it is not surprising that companies have been looking to their insurers to see what relief is available. An increase in cargo theft was a key finding in the BSI’s ‘Supply Chain Risk Exposure Evaluation Network’ study in October. It highlighted a global increase in warehouse and facility theft, particularly in Europe, as well as a rise in cargo theft of pharmaceuticals and medical supplies. Food fraud due to global movement restrictions and the impact of Covid-19 on transport has also become an important issue. Specialist transport insurer TT Club has also noted a growth in cargo theft, says Mike Yarwood, MD, loss prevention. “There has been a definite uptick in thefts from depots over the past 12 months.” He points out that accumulation of cargo is an issue because the delays resulting from Covid mean there is the risk of cargo accumulating in warehouses and not being collected as originally planned. Very often these are non-critical but valuable goods, which are being stored for the medium term in overspill premises, or even on trailers or in containers at the port of arrival. “Cargo at rest is cargo at risk, and cargo left overnight or longer is generally at more risk,” says Yarwood, who points out that thieves have been breaking into depots and stealing complete trailer or container loads of goods. Yarwood highlights the dynamic nature of risk. Back in 2017 or 2018 no one would have thought that face masks or hand sanitiser were attractive to thieves, but in 2021 they are. “It shows just how close to market forces the criminals are,” he says. So operators need to look at what can be done to mitigate this risk. “If you are a haulier storing goods like that, security has probably not been at the top of the agenda. But now, you need to look at updating your security,” he says.
26 MotorTransport
A related issue is goods that have missed their market. The delays that have resulted from Covid, and to a lesser extent Brexit, mean that some goods, notably fashion items, have not made it to the stores in time for the selling season and consequently now have little or no value. Not only that, some companies have gone out of business in the time it has taken goods to get from the Far East to Europe, resulting in an accumulation of abandoned cargo, creating problems for the depots and operators. Yarwood highlights another increasing problem. For some products such as food, the theft of even just one or two cases of product can render the whole trailer load unusable because the integrity of the load has been compromised.
Felixstowe, like other major container ports worldwide, has been experiencing high container volumes as a consequence of the Covid pandemic
Compromised goods
Companies can’t risk putting such compromised goods into the food chain. As a result, there is an increasing trend to claim for such damaged loads, says Yarwood. Inevitably, these trends have resulted in a rise in the number of claims. But there is evidence that insurers have been challenging more claims. In fact, almost half of companies have seen an increase in challenges to their claims throughout 2020, according to the latest member survey by Airmic, which represents company managers responsible for risk and insurance. More respondents reported that they are seeing reduced cover capacity, increases in cover exclusions, and poor and late communication from insurance providers. Since the UK and the EU reached a post-Brexit deal in December 2020, Airmic found that members were most concerned that there will be additional insurance costs. Perhaps the biggest area of dispute between companies and their insurers resulting from the pandemic has been in the area of business interruption. Companies that have been badly disrupted by Covid-19 have looked to their insurance to provide some relief. The response from the insurance industry tended to focus on the fact
Mike Yarwood, MD, loss prevention, at TT Club 22.3.21
Photo: Port of Felixstowe
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that insurance is intended to cover exceptional problems, not the inevitable. Not surprisingly, this very quickly ended up in court. Under normal circumstances, this could have taken years to resolve. Fortunately, it was agreed that an accelerated process would be used for a test case launched by the Financial Conduct Authority. In September last year, the High Court handed down a judgment ruling that most of the disease clauses and certain prevention of access clauses (12 policy types from the sample of 21, issued by six insurers) provide cover and that the pandemic and the government and public response caused the business interruption (BI) losses. Not surprisingly, this went to appeal – straight to the Supreme Court. In January, the Supreme Court produced a complex, 112-page ruling broadly supporting the High Court’s decision.
CUT RISK TO SAVE MONEY
Julia Graham, Airmic’s deputy chief executive and technical director
Supreme Court ruling
The key points of the Supreme Court ruling are that cover may be available for partial closure of premises (as well as full closure) and for mandatory closure orders that were not legally binding; that valid claims should not be reduced because the loss would have resulted in any event from the pandemic. It also ruled that two additional policy types from insurer QBE provided cover. John Ludlow, chief executive of Airmic, says: “Affected policyholders will welcome the ruling to unanimously dismiss insurers’ appeals and to substantially allow all four of the FCA’s appeals in favour of policyholders.” And Julia Graham, Airmic’s deputy chief executive and technical director, highlights the significance of the ruling: “The FCA has estimated that some 370,000 policy holders would be affected by today’s Supreme Court decision, paving the way for up to £1.2bn in BI claims payments, across 700 policy types, from 60 insurers.” There is no doubt that the insurance industry is feeling rather bruised by this. The Association of British Insurers (ABI) supported the legal process because it wanted clarity on the situation. An ABI spokesman says the upshot of the case is that there has been a lot of negative comment on the insurance industry. “Its reputation has not been enhanced.” However, he says, insurers have been contacting customers that have valid claims and have paid out about £900m so far. The industry is now taking its time to analyse the Supreme Court ruling, and the results are likely to be seen in how policies are written in the future. n
Insurers are generally pretty coy about what will happen to insurance premiums as we move out of the pandemic: insurance is a competitive market after all. But it seems unlikely that premiums will fall, so more than ever it is worth looking at what can be done to reduce risk and manage insurance costs. TT Club is an insurance provider owned by its members, and that means it is keen to find ways to reduce risks and losses for those members. So it has pioneered initiatives such as the Cargo Integrity campaign, as well as doing a lot of work on truck and trailer fires. The club was created in 1968 to provide insurance specifically for container traffic and has since expanded to offer coverage for road haulage, as well as other areas of the supply chain. The Cargo Integrity campaign is designed to help stakeholders in the supply chain to do the right things in securing and packing cargo, says TT’s Yarwood. Club figures show that up to 66% of damage claims originate from poor practice in the overall packing process and globally this costs insurers more than £360m per year. The club has lobbied through the International Cargo Handling Coordination Association to develop a Cargo Transport Unit packing code that gives best practice for warehousing and transport of cargo. It has also produced a quick guide and packing checklist for transport operators, retailers and forwarders to make it easier to implement best practice. The club has also been working on truck and trailer fires. About two-thirds of such fires are caused by issues relating to wheels and brakes, according to its data analysis. The club has identified a number of factors and, says Yarwood, operators can use this information to mitigate risks. When the vehicle is heavily loaded, excessive heat build-up in the brakes or wheel bearings can ignite grease and the fire can spread to the tyres. Yarwood highlights the importance of regular checks to ensure wheels and brakes are functioning correctly and are free of obstructions.
HI-TECH INSURANCE One of the key benefits of telematics technology is improving driver behaviour to give better fuel economy and reduced wear and tear on the truck. Not surprisingly, this information provided by telematics is increasingly interesting to insurance companies, which are always looking to increase the amount of data that they can use to assess risk. Adam Gooch, director of the insurance unit at fleet management company Trakm8, points out that there are fleet management programs available to brokers and fleet operators to enable them to monitor driver behaviour. “This is becoming a more and more important part of the market.” And the use of this data is becoming more and more in-depth. Gooch says that 15 to 20 years ago it was possible to collect data, but he questions how much was actually being used. Now the investment is being made to enable this data to be analysed and insurers will increasingly be using that to drive pricing decisions and risk exposure. Technology is also being used to provide operators with information about crime hotspots. This is an initiative by TT Club working with Motorway Buddy and the police. The Motorway Buddy app (pictured) is designed for hauliers and supports documentation and paperwork, and maps parking locations. 22.3.21
TT Club’s Mike Yarwood says: “We partnered with Motorway Buddy because we are passionate about reducing cargo theft.” Operators can use the app to report crime to the National Vehicle Crime Intelligence Service and it is used to create a freight crime hotspot map. This can differentiate between fuel crime and other incidents. Users can zoom in and click on an incident to get an outline description of what happened.
MotorTransport 27
Interview: Laurence Drake
Returning to the best-laid plans
DAF might have suffered like many businesses over the past 12 months, but MD Laurence Drake isn’t letting the pandemic influence his long-term strategy. Steve Hobson reports
T
he Covid-19 pandemic has affected everyone in the UK differently, but the shift to working from home came at a particularly unfortunate time for DAF Trucks, which opened its new £20m, 50,000sq ft head office in November 2018. Barely had its 200 staff settled in before they were told to stay at home, though MD Laurence Drake still goes in to keep an eye on the place once a week. “There are only a handful of people there who can’t connect from home,” he says. “I think everyone is fed up with it now. It would be nice to get out and meet people and to have an end to all this uncertainty. “We are planning that by Q3 we will be out and about, so we are trying to work out what that might be – maybe a golf day with 12 customers. We are hoping the CV Show happens [31 August – 2 September at the NEC] although we aren’t sure if we will go to it or not.” DAF has made no secret of its preference for a biennial CV Show alternating with the giant IAA Show in Hannover. The 2020 Hannover show had to be cancelled and is now planned to run in September 2021.
28 MotorTransport
Back in 2019, when things were normal, it was a bumper year for the UK truck market over 6 tonnes, ending on 48,000 registrations. Of these, DAF took a record market share of 30.5%. “We came in to 2020 in a strong position with a good order book,” says Drake. “Then the pandemic hit in mid-March and our original projection of between 42,000 and 44,000 for 2020 ended up at 33,000, 25% down. “Our factories closed from the end of March to midMay and the order book just froze, so we lost six weeks from the year.” But H2 2020 picked up and DAF ended the year with a share of 32.0% – another record high.
Home comforts
“That was slightly surprising as we were really focused on talking to existing customers and rewriting R&M, etc,” says Drake. “Brexit probably helped push some new orders in. Last year, while retail was affected, we saw fleets just continuing on their purchasing cycles. Because we build in Britain, we were able to give a pricing pledge for 2021 even if tariffs on imports were applied. That definitely won us a fair bit of business as we approached Brexit without having to fill up the production lines with vehicles for stock.” While DAF has a good reputation for tractor units – its venerable XF won the MT Fleet Truck of the Year title for the third time in five years in 2020 – most of its sales are rigids. “One of the big impacts on our registrations in the first half of 2020 was the fact that bodybuilders had shut down, but they came through in the second half,” says Drake. “We also have a very broad customer base and that protected us.” The impact on dealers of the first lockdown was severe, with R&M and spares business dropping 50% in the first four weeks. This quickly recovered to 80% of normal trade in the following four weeks, and by the end of the year business took off, with record parts sales in Q4. Around 15% of DAF customers, mainly in the hospitality sector, were given R&M holidays as their work dried up, but no vehicles were returned. “DAF and PACCAR Financial don’t have rental arms,” says Drake. “We are pretty strong in rental companies, but they were able to move vehicles into sectors that needed them, such as supermarket deliveries or NHS supplies.” It is an open secret that a new DAF cab is coming soon to replace the CF and XF that operators know so well, but Drake is not concerned that the shock of the new will put off traditional DAF buyers. “The cab we have has been incrementally improved and those improvements are always based on listening to operators,” says Drake. “They need safety, fuel efficiency and driver comfort, and whatever our engineers do going forward, they will be the basis of what they look at. “When people look at DAF, it is also recognised that we have a very good dealer network and that we are an 22.3.21
motortransport.co.uk
easy manufacturer to talk to. I’m not saying we get it right all the time, but if we don’t we will put our hand up and understand the operator’s pinch points. We have great longevity of personnel and our customer relationships are very strong.” DAF’s excellent aftersales care is always a factor in the company’s success with the Fleet Truck of the Year panel, and this consistent level of service is also down to relationships. “There are 135 locations in the network, but we are probably only talking to 25 people to have a consistency of approach among the independent and franchised dealers,” says Drake. “I’ve been at DAF 20 years and quite a few of our dealer panel have been dealer principals in the time I’ve been there. So there is a culture to how we do things. That’s not to say we can’t do things better because there is an ever-changing understanding of what good customer service is. What might have been good five years ago won’t be good today. We can’t rest on our laurels.”
Engine of change
One of the biggest questions facing dealers as the UK truck fleet gradually moves to electric rather than internal combustion motive power is where will their future revenue come from? Electric vehicles have far fewer moving parts and require less maintenance and fewer spare parts over their lifetime, so will generate less income for the aftersales network. “There are roughly 400,000 trucks in the UK, of which 110,000 are DAFs,” says Drake. “In five years’ time the majority will be still be there so we don’t need to worry about that. Moving on another five years, by 2030 the 30% CO2 reduction target is kicking in and we would have been selling electric trucks for maybe five years, but that is still only 5% or 10% of production. So it is probably 15 years away from there not being as many conventional internal combustion engine trucks. 22.3.21
“But in 20 years’ time, what does a dealer look like? Is the dealer going to be more into logistics and about where the operator charges or changes the battery rather than maintenance of the diesel engine? I honestly don’t know. I know it’s coming, but it’s hard to see what it looks like. Battery technology in 15 years’ time might be completely different.” DAF is one of the European truck makers to sign a pledge to eliminate fossil fuels by 2040, and while its parent PACCAR is trialling a range of alternative fuels in the US, DAF is focused on battery electric. It was the first European truck manufacturer to produce a full-electric tractor, the 37-tonne CF Electric, aimed primarily at supermarket distribution and inter-urban transportation. Since then, it has added a 29-tonne 6x2 CF Electric rigid with a steered rear axle, which is ideal for refuse collection; and the LF Electric, which has the latest 282kWh lithium ferro phosphate battery that gives a range of 280km and comes with a six-year warranty. In the US PACCAR, Shell and Toyota are working together on a trial of Kenworth hydrogen fuel cell heavy trucks in the Port of Los Angeles. “We are quite lucky that we are part of a global company that is able to look at different fuel types, and we have gas, electric and hydrogen over in the US,” says Drake. “DAF’s school of thought is that ‘it’s electric’ and at the top end maybe it heads into hydrogen. Whether that is a fuel cell or maybe hydrogen running a combustion engine is still not clear. Fuel cells are expensive so there may be a middle ground, and there will also be hybrids in the mid-range. “I feel quite strongly about natural gas as to me it is a distraction. It is still a fossil fuel unless you are using biomethane. So the government’s tax relief on gas is actually subsidising people burning a fossil fuel. That seems bonkers to me. ➜ 30
CUSTOMER CARE: DAF MD Laurence Drake says the company’s aftersales care is an essential part of its ongoing success
MotorTransport 29
Interview: Laurence Drake
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➜ “We have all these targets for carbon reduction – 15%
by 2025, 30% by 2030 and no more fossil fuels by 2040 – which is great, but we are just coming out of a pandemic and operators have no money. The government is expecting manufacturers to go to people and say ‘Buy this electric vehicle, it’s five times the price of a normal one and we’re not sure about the infrastructure – but it will save the planet’. That is cloud cuckoo land. HVO can go into people’s fleets today and that is a 90% well-to-wheel saving from day one. “Unlike biomethane, HVO doesn’t need new infrastructure, it doesn’t affect the residuals and it doesn’t affect the operation. So subsiding that helps. Biomethane should go into homes rather than trucks.” Drake is confident that battery electric is a viable alternative to diesel for light vehicles, but admits that as weights increase “it gets trickier”. “That could be electric and HVO if you were looking at a hybrid option,” he says. “Then it may be hydrogen. What is clear is that no one thing is going to solve this. It will be a mixture and we need to look at all avenues. “What everyone needs is clarity. At one time Euro-6 was what cities wanted, but now some want zero emissions. It is all a bit hotch potch. If you want manufacturers and operators to put their money in you need to give us a feel for what direction we are going in.”
Basic truths
While the possibility of large numbers of cheap Far Eastern electric vehicles coming into Europe is a concern, Drake goes back to the importance of relationships when it comes to selling commercial vehicles. “When you’re running a business, it is about the dealer network and knowing you can trust the people there,” he says. “The barriers to any new entrant to the truck market are about logistics and infrastructure. Having said that, if they can build an electric truck that just needs recharging and never breaks down then maybe, but in reality it will be hard to push the main brands out.” Another potential barrier could be a move by the UK government to include carbon emissions embedded in imported trucks, something which so far has been ignored in calculating UK emissions. “If they are building it over there and shipping it here, what is the CO2 cost of making and shipping it?” asks Drake. “There is no point having a zero-emissions truck if it is manufactured using energy produced from coal. We also need to think about selling used Euro-3 trucks into Africa – sustainability has to be from beginning to end, rather than ignoring the parts that are someone else’s problem.” n
In 2019, DAF started trials of three fullelectric trucks and two plug-in hybrids with Dutch supermarket chain Albert Heijn’s carriers Simon Loos and Peter Appel Transport. One of these vehicles – a 37-tonne CF Electric 4x2 tractor – was on the DAF stand at the CV Show that year. “The trials are going well and the vehicles have done over 150,000km,” says Drake. “There has been a great deal of learning – diesel vehicles are very flexible, but with battery electric the route needs to be very specific. We have now doubled the range to 220km and with a fast-charge to 80% capacity in an hour.” The CF Electric is on sale in the UK today. “Selling electric vehicles is a much more consultative process than with diesel,” says Drake. “We will talk about where it will be charged, where is it going, what weight does 30 MotorTransport
it need to carry… Sometimes the charging infrastructure will take time to install, so even if people want an electric truck it might be a year before the utility company upgrades it.” DAF will meet the first EU target of a 15% cut in CO2 emissions by 2025 based on a 2020 benchmark largely by improving the fuel efficiency of conventional powertrains rather than selling large numbers of electric vehicles. “Reducing CO2 by 15% has taken the industry 20 years and now we have to do it again in five years – and then another 15% in five years to 2030,” says Drake. “We are putting out production electric vehicles, but we aren’t expecting to sell 1,000 or 2,000 this year. We are aiming for 2% of our output to be electric by 2025, so that has to be our target in the first instance.”
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MT Awards 2020 winner profile Urban Delivery Operator of the Year
City slicker DPD’s ground-breaking Urban Delivery Strategy is a model for operating in densely populated city centres
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arcel firm DPD is redefining the way it operates within an urban environment to ensure its fleet of 8,000 delivery vehicles reduce their impact on air quality, noise levels and road safety. With 46% of parcels now destined for city centres, DPD’s Urban Delivery Strategy has seen the launch of a network of micro-depots with all-electric trunking, alongside a wider expansion of its electric fleet to 732 vehicles by the end of 2020. This number has since increased to 800. One advantage of serving city centres is that drop densities are much higher than in rural areas, making the operation more efficient and more suited to electric vehicles’ limited range. “Comparing London with rural Sussex, for example, it would work out at around 250 stops per day in the City of London versus around 85 in the Sussex countryside,” says DPD head of CSR Olly Craughan. “Our new route
32 MotorTransport
optimisation software – a big factor in DPD winning the Best Use of Technology Award [MT March 8] – means we now make a delivery every 0.93 miles versus every 1.02 miles, an improvement of 9% in the last two years.” Its first two micro-depots opened in Westminster and Shoreditch in London during 2019 and between them have produced an emissions reduction of 95.8 tonnes of CO2 per annum. Before Westminster, DPD’s 63,000sq ft London City depot (in Southwark) was sending 15 3.5-tonners into London every day and clocking up 614 miles, whilst before Shoreditch the firm’s 37,500sq ft Barking depot was sending 20 3.5-tonne diesel vehicles into central London every day, clocking up 773 miles. Thanks to DPD’s all-electric vehicles and micro-depot strategy, its miles travelled per parcel have been almost halved and this more efficient operation now produces just 0.138 tonnes of CO2 per month versus 8.67 tonnes of CO2 before the sites opened – an incredible 98.96% reduction. This reduction in CO2 emissions has also been helped by a fall-off in traffic congestion – but this is now returning as commuters return to work. “TfL’s measures were good at lowering private mileage congestion before the pandemic, but now with people reluctant to use public transport, single-occupancy car journeys have increased,” says Craughan. “Our goal of course is not to reduce volumes into city centres, but to carry them on zero-emission vehicles, thus improving air quality.” A third micro-depot is now running in Hyde Park, with a total of eight planned across the capital. To locate these, DPD is encouraging local authorities to think out of the box when it comes to using buildings that are under-utilised or unoccupied as a result of the pandemic. “We are talking to a couple of potential partners – both public and private – who previously wanted to charge us very steep fees to operate a DPD micro-depot, but who are now looking to repurpose their real estate and attract alternative revenue streams,” says Craughan.
Wide appeal
Outside of the capital, the business has been rolling out its urban strategy with 800 electric vans now located at 84 depots nationally, which DPD says has been hugely positive. In 2020, the company delivered 11.2 million parcels on EVs, up from just 1.3 million in 2019 and the goal now is to hit 100 million by 2025. With 10% of the fleet now electric, CO2 emissions are reduced by 5,000 tonnes a year, the equivalent of planting 20,000 trees. “We now have three all-electric depots in London and one in Hull,” says Craughan. “We are aiming to have 10 in London as soon as possible. Our latest London microdepot opened in November 2020 in a car park at the bottom of Park Lane, which involved an innovative partnership with the operator, Q-Park. “But we faced numerous bureaucratic barriers to get permission to operate there. Opening our first two sites in Westminster and Shoreditch wasn’t plain sailing either. To be frank, we’d like to move faster in the capital and open more all-electric micro-sites more quickly, which is why we’ve repeatedly called on local and national government to cut red tape and make it easier for all operators to go green. Finding sites is a challenge due to rents in London, so we are actively looking for strategic partnerships with landlords.” 22.3.21
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Pushing the boundaries
As the range of electric vehicles increases, will DPD eventually be able to close some of these new sites and consolidate into larger depots again? “We’d need a crystal ball to answer that question!” says Craughan, “Much will depend on how quickly EV batteries evolve, but at the moment we think there’ll always be a place for sites that are close to customers and where there’s an opportunity to reduce emissions through short stem mileage.” A pioneering approach to its fleet has seen DPD source all-electric Paxster micro-vehicles from Norway, while at the same time developing an eCargo bike in partnership with UK start-up EAV. It was first in line to secure a 100-strong order of the new 3.5-tonne MAN eTGE. DPD said this size of vehicle is the ‘workhorse’ of the operation and the firm has been keen to see variants come to market for a long time – so much so that it will be taking left-hand-drive vehicles initially to be converted in the UK. To avoid having to recharge batteries during a delivery round, DPD is matching vehicle range to length of route, says Craughan: “Operational planning means we allocate our EVs to the lowest mileage routes, so our initial approach nationwide has been to go for that ‘lower hanging fruit’.” It is not just the final mile that DPD has been electrifying. It had two FUSO eCanters when there were only 10 in the whole UK at the time and these are still used to trunk parcels from a huge DC in Southwark to the company’s Westminster micro-depot. DPD has made no secret of its frustration at the lack of availability of larger non-diesel vehicles with a range that will enable it to trunk parcels from its national sortation hubs in Oldbury and Hinckley to London without emitting CO2. “The pace of progress here is frustrating, but we are 22.3.21
PIONEERING: DPD head of CSR Olly Craughan says the secret to the firm’s EV roll-out has been its willingness to work with partners public and private
currently trialling a bio-methane tractor unit which produces 80% less CO2 than diesel,” says Craughan. “We also have to bear in mind that having the biggest fleet of double-deck trailers in the UK (a choice we made many years ago for environmental reasons) has implications for battery power. “There will be several announcements in the sustainability space coming soon! Our dedicated green website keeps all stakeholders up to date on our latest developments [green.dpd.co.uk].” The move to electric delivery vehicles has raised concerns about how drivers who take their vehicles home at night can recharge them. This is especially a problem in central London, where relatively few people have access to private drives and garages to plug in vehicles. “We’ve invested nearly £70,000 so far to install electric vehicle home chargers for our drivers, so that’s where 60% of the charging happens,” says Craughan. “The other 40% is in the depot or at public charging points – where we would welcome more urgency from the government in terms of building the infrastructure.” This investment in home chargers means that large and expensive upgrades to depot electrical infrastructure have not been necessary so far. DPD has selected Pod Point as its in-depot smart-charging supplier. DPD has also rolled out essential driver training for new electric technology, as well as supporting drivers to adopt home-charging systems with funding of £250 and help to access a further £500 government grant. It continues to focus on safety, ensuring full compliance with London’s incoming Direct Vision Standard and vulnerable road user awareness. Judges said: “This was a very strong entry from DPD. A great use of technology and different operating models to protect the urban environment. Also impressed to see them encouraging home charging by drivers – this is challenging and has not been trialled by many.” n MotorTransport 33
MT Awards 2020 winner profile Operational Excellence Award
Really nailing it annual revenue by about £60m, but increasing the group’s underlying profit. A month later it sold off repair and maintenance company Pullman Fleet Services (PFS), once again to focus on more profitable core markets. “The thing about third-party logistics is that even if the economy isn’t performing well, if there’s more outsourcing going on, then our industry can be successful,” Wroath told MT. “There are still opportunities because in-house companies think more openly about outsourcing.” What’s particularly impressive about the Screwfix deal is that Wincanton has managed to drive safety and service levels higher and keep costs down despite Screwfix continuing to enjoy rapid growth in volumes. Sales for the omni-channel retailer passed the £2bn mark earlier this year, while last year it opened 30 new stores, creating over 500 new jobs. This rapid expansion has meant every peak period has been bigger than the last – the challenge being to ensure delivery targets are still met.
Demand shift
With e-commerce now a major focus at Wincanton, the 3PL has taken the rapid expansion of omni-channel retailer Screwfix in its stride with pace, agility and flexibility 34 MotorTransport
I
f there’s one contract that perfectly illustrates Wincanton’s determination to offload loss-making elements of its business and drive growth through less mature markets, it’s the 10-year partnership it has developed with Screwfix. The tie-up has been an outstanding success for both parties and saw Wincanton scoop our Operational Excellence Award for 2020. Last July, Wincanton chief executive James Wroath told MT that the big winners in retail contract logistics would be those involved in areas like e-commerce – retailers that are omni-channel, pure play and agile enough to support online fulfilment. Wincanton’s contract with Screwfix fits neatly into that philosophy, alongside other lucrative deals with the likes of Sainsbury’s, Argos, Morrisons, Co-op and B&Q. The 3PL returned to growth in Q3 2020, the biggest increase being in digital and e-fulfilment, where revenue was up 40%. To underline its growing commitment to online retail, last October Wincanton disposed of its container business to Maritime for around £1.5m, reducing its
Rachel Gilbey is MD for general merchandise at Wincanton and runs the Screwfix (Kingfisher) contract. She’s been with the company for over 17 years, beginning as a graduate and working her way up on the retail side of the business. So why does she think Wincanton won out over the other candidates in this category? “Wincanton is less constrained than our international peers,” she explains. “We’re able to move at pace; we’re agile and flexible. We’ve been with Screwfix since they had less than 100 trade counters and we’re now over 700, so they’re continuing on that growth trajectory.” Gilbey agrees that the market is currently experiencing a huge shift in channel demand: “The million-dollar question is how consumers are going to buy in the future, as we move through the remainder of Covid and postCovid,” she says. “And nobody really knows. We have to be future-proofed to continue to adapt. “There’s been a shift in how people are spending their disposable income. Nobody’s been able to go on holiday, people aren’t eating out, and many are working from home, so there’s been a shift to DIY and the trade market. So yes, we’ve seen an uplift in volumes. It’s been a record year in that respect.” Wincanton supports all of Screwfix’s omni-channel retailing, which amounts to 30,000 products that can be ordered online for next-day delivery. “We do all of that from our DC and we do all of the store fulfilment,” Gilbey says. “So we do both routes to market, and myriad things in between, and then we execute the transport to store, which is where we won the award. So we really are an end-to-end supply chain partner.” 22.3.21
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So what makes Screwfix such a great company to work with? And what benefits does the retailer see in dealing specifically with Wincanton rather than any of its competitors? “Our agility is one of the things that they like, and the fact that we’re not bureaucratic,” Gilbey says. “Working at pace and making decisions is really easy relative to our peer group. “It’s the same with Screwfix – we have great relationships with their supply chain and logistics teams so we have full sight of what they’re planning strategically and we work with them on their three- and five-year strategic plans and help shape those together.” Wincanton’s approach is to “add value through collaboration”, Gilbey says, using its vast scale and expertise in the UK market to bring benefit and value to the Screwfix operation. Technology to plan routes has been key to its success. The company achieved an increase in routes of just 6% last year, despite a 20% rise in the number of trading counters it delivered to. “The core of everything is sweating the assets and making sure we provide the best cost to serve that we can,” Gilbey explains. “It’s dynamically scheduling the routes that go out and maximising the number of trade counters that we can go to on every delivery.” On-time delivery targets have also been exceeded, up from 99.65% in 2018 to 99.89% in 2019. This meant Wincanton needed fewer trailers, the number falling from 367 in February 2018 to 308 in February 2020. “We have brilliant people who really understand the UK road network and the pinch points and we learn from what we see around specific geographies,” Gilbey continues. “The stores feed back to us if there are local challenges like traffic lights going up near a store, for example. And then we have a plan to stick to that we execute every day and we monitor ourselves against that plan. That continues to evolve and we continue to learn and to refine it and make it the best it can be.”
Driver efficiency
Wincanton has seen significant improvements in efficiency from drivers and a big reduction in collisions. It has installed the Dynafleet telematics system to monitor driving styles and this, combined with driver training, has seen the average weekly idling time across the fleet fall from 5.65% to 4.77%. “We use the data to educate, train and enhance our drivers’ experience,” Gilbey says. “When they’re learning and being coached in the right style, they’re really welcoming of it.” Wincanton also has driver trainers and a central driver resource: “We know there’s a market shortfall because of the ageing population, but we’re very good at retaining, attracting and developing drivers. We’ve also invested in inclusion to try to attract female drivers. We’re passionate about that – particularly myself, being a female!” she says. The company is also working with the government on improving welfare facilities, learning from the bus and rail industry, which have seen an uplift in female drivers. It has also been able to open up pop-up operations in some of its other customer distribution centres, benefitting from being able to move labour, assets and people. Like other operators involved in e-commerce and 22.3.21
e-fulfilment, the pandemic has only served to increase its business. Where firms in other sectors are exercising caution, Gilbey says it’s “full steam ahead” for the Screwfix deal.
Working at pace
“We’re supporting the growth and the shift to online sales,” she says. “So we’ve had to be resilient in what’s been an extraordinary 10 months. The safety of our colleagues is our number one priority and we always put that first. And then we work at pace to do what we can to service the Screwfix customers. “As an example, at short notice we opened up another fulfilment centre for Screwfix. That’s gone in and gone live and been a huge part of being able to deliver through Covid and provide us with the extra capacity that we’ve needed this year. So it’s all about being agile – making some mistakes along the way and learning from them. But it’s been unprecedented and I’m very proud of how both teams have responded. It’s been phenomenal.” The biggest remaining challenge, she says, is retaining that flexibility and pace while being able to adapt. “We have to be very focused on the short term, but keep one eye on the future to make sure we’re supporting their growth ambitions.” As a UK-focused supply chain partner, Gilbey highlights the potential for Wincanton to see additional demand for its services as a result of the Brexit trade agreement. This will include a need for warehouse space as people move volume into the UK to have it sourced more locally because of the potential friction at the borders. However, capacity issues are unlikely, partly because of Wincanton’s Virtual Access to Storage and Transport (VAST) platform – an online tool for matching buyers and suppliers of warehouse space. “We have a really strong strategic partnership and we’re constantly looking three, four and five years ahead in terms of supporting Screwfix and their growth ambitions,” she concludes. “We will provide them with the services they require to underpin that and add value in terms of delivering change. Kingfisher and Screwfix are a perfect customer in terms of strategic alignment with what Wincanton is trying to achieve.” n
WORKING AT PACE: Wincanton MD for general merchandise Rachel Gilbey
MotorTransport 35
The Standard Winter 2020
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