Motor Transport 23 March 2020

Sharp ■ Informed ■ Challenging

NEWS INSIDE

23.3.20

NEW MAN TGX

Coronavirus update

Relaxed drivers’ hours and suspended schemes p3 and 6

For superhuman drivers.

Discover more at truck.man.eu/mantg

All positive

TPN thrives under Eddie Stobart ownership

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18/02/2020 10:06

Extra measures for logistics sector sought as coronavirus hits industry

FCL Events Logistics ..................................... p3

Government: logistics is critical industry

Fleetwood Transport ..................................... p3

By Steve Hobson and Chris Tindall

In response

Traffic commissioners do comply with code

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OPERATORS INSIDE Eddie Stobart Logistics .................................. p4

Jigsaw ......................................................... p4 Premier Logistics .......................................... p3 Reason Transport .......................................... p4 Sargents Trucking Services ........................... p3 XPO Logistics ............................................... p3

Treasury delays changes to IR35 The IR35 tax reforms will be delayed for a year to help firms weather the coronavirus pandemic, the treasury has revealed.

The move, announced by chief secretary to the treasury Stephen Barclay, came only a day after the House of Lords Finance Bill subcommittee called for a six- to 12-month delay to IR35 in light of the effect of the outbreak.

“This is a deferral, not a cancellation,” Barclay said, “and the government remains committed to reintroducing this policy to ensure people working like employees but through their own limited company pay broadly the same tax as those employed directly.”

Under IR35, large and mediumsized haulage companies with a net turnover of above £10m or 50 or more staff will not be able to use drivers who work as limited companies. Instead drivers will need to be employed as a PAYE worker – either by the haulage company, a driver agency or an umbrella company.

RHA chief executive Richard Burnett (right) has paid tribute to the positive response from transport secretary Grant Schapps to a set of measures requested to support the haulage industry through the coronavirus epidemic.

In a letter to Schapps seen by MT, Burnett warned that his members were “reporting catastrophic effects on their businesses” and the government needs to make “immediate financial intervention” to prevent mass bankruptcies.

“I am in regular contact with Grant Schapps and am confident he understands the scale of the problem,” Burnett told MT. “He has been a breath of fresh air after his predecessor and has confirmed the government recognises logistics is a critical industry and its staff are key workers.”

In addition to the £330bn package to support all businesses in the UK announced by the chancellor, the measures sought by the RHA specifically for hauliers include: enforced payment holidays with leasing companies; road fund licence reductions; deferment of clean air zones and the Direct Vision Standard for at least six months; relaxation of lorry road tolls; and fuel duty reductions for essential users.

Almost half of all the food consumed in the UK is imported, and while P&O Ferries has pledged to maintain its sailings, which carry more than 44,000 pieces of freight every week, Burnett warned that restrictions on cross-border

movements in Europe could soon see falling import volumes. As a result he said the relaxation of drivers’ hours rules for retail deliveries missed the point as hauliers delivering products for manufacturers were also under severe pressure.

“As imports come under threat we will have to manufacture as much food as possible in the UK,” he said. “Container volumes from China have dropped by more than 70% and we are seeing issues with the flow of raw materials, retail product and food from Europe.”

The government’s £330bn package has also been welcomed by hauliers, although questions remain over how quickly they can access help. Dame Carolyn Fairbairn, CBI director general, called for urgent decisions on wages. “It is clear this situation will not stand still, so nor can the economic support,” she said. “The pace of change is too fast to play catch up.”

Dave Ashford, transport direc-

tor at KBC Logistics, said delaying changes to IR35 was a great help, but questioned how companies would access grants and loans.

“How do you apply? At what point do you apply, as things can change quickly, which also leads to the question how long does it take to get the help?”

NEW NEW MAN TGX MAN TGX truck.man.eu/mantg man.eu/mantg

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C E L E B R AT E S U C C E S S B O O K Y O U R TA B L E N O W 1 J U LY 2 0 2 0 w w w. m t a w a r d s . c o . u k GROSVENOR HOUSE HOTEL, LONDON @motortransport

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Motor Transport

26/02/2020 09:33

News

motortransport.co.uk

Outlook bleak as virus hits events hauliers

Government relaxes drivers’ hours rules

By Chris Tindall

The government has relaxed EU drivers’ hours rules in England, Scotland and Wales for hauliers involved in the delivery of food and over-the-counter pharmaceuticals.

The relaxation also affects deliveries of personal care, household paper and cleaning products.

The Df T said this temporary, limited and urgent relaxation affected drivers when undertaking journeys from distribution to stores or fulfilment centres; from manufacturers or suppliers to DCs (including backhauls) and stores; between DCs and transport hub trunking, as well as transport hub deliveries to stores.

The DfT said it does not apply to drivers undertaking deliveries directly to consumers. It added that driver safety must not be compromised and drivers should not be expected to drive while tired.

The exemption runs until 23:59 on Thursday 16 April. The rules can be relaxed by replacing the daily driving limit of nine hours with 11 hours; by reducing the daily rest requirements from 11 to nine

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Events hauliers are counting the cost of the coronavirus outbreak as multiple conferences, exhibitions and music events continue to be either cancelled or postponed across the UK and Europe.

Coventry-based Sargents Trucking Services has been hit by the recent cancellation of two major European shows. Owner Simon Sargent told MT: “Every haulier, forwarder and events supplier is experiencing mass job cancellations and the future looks bleak for all concerned.

“All our booked work has been cancelled or postponed and all of our colleagues are in the same position. Trucking has never been harder, with many sectors suffering the same pain.

“The only bright spot is the falling price of diesel – sadly we’ve got little need of it at the moment.”

Richard Warren, MD of Fleet wood Transport in Sittingbourne, said: “We had a full diary for March, April and May but it’s all gone.”

Martin Cowie, logistics manager at Staines-based FCL Events Logistics, said the firm has been forced to make drivers redundant and some clients are delaying payments.

Food and pharmaceuticals included in DfT’s extended drivers’ rules

hours and raising the weekly and fortnightly driving limits from 56 and 90 hours to 60 and 96 hours respectively.

In addition, the Df T added that companies can postpone the requirement to start a weekly rest period after six 24-hour periods to after seven 24-hour periods – although two regular weekly rest periods, or a regular and a reduced weekly rest period, will still be required within a fortnight.

However, drivers must not use this last relaxation at the same time as replacing daily driving limits with 11 hours.

Finally, the requirement for a break of 45 minutes after four-and-

a-half hours driving can now be replaced with a 45-minute rest after five-and-a-half hours.

A Df T statement said: “Drivers must note on the back of their tachograph charts or printouts the reasons why they are exceeding the normally permitted limits. This is usual practice in emergencies and is essential for enforcement purposes. The temporary relaxation of the rules reflects the exceptional circumstances stemming from the COVID-19 outbreak. The department wishes to emphasise that, as a general rule, we expect businesses to plan for, and manage, the risks of disruption to supply chains.”

XPO buys K+N contract logistics arm

LEVEL PLAYING: A back-to-basics approach has helped Premier Logistics to successfully trade through its 18-month company voluntary arrangement (CVA), the company has revealed. The haulier said it is now ready to compete on a level footing after restructuring its finances in 2018 via a CVA in the face of £5.7m debts to creditors. HMRC forced through a revision to the original terms, which would have meant the company making monthly contributions over five years. However, Premier Logistics said this term was later reduced as part of a settlement accepted by creditors and HMRC, and the CVA ended in February. The Leicestershire company said it had concentrated on its core services, stripped back its assets, separated out non-profitable contracts and focused on a core group of loyal customers . It added that over the past 18 months, it had been unable to tender for certain contracts but it now had the ability to respond to commercial opportunities.

23.3.20

The Unite union has admitted the transfer of 6,000 Kuehne + Nagel workers to XPO Logistics came as a surprise, but that it would work to ensure pay and conditions remained unaffected.

The sale of K+N’s UK contract logistics portfolio followed a review of its business and is expected to close in the second half of this year.

It includes its drinks, food services, retail and technology operations,

which generated a turnover of approximately £617m in 2019.

The move is separate from the ongoing consultation involving 1,500 workers on the Waitrose contract being transferred to XPO Logistics.

Unite national officer Joe Clarke said: “We have been given assurances that all terms and conditions of employment will transfer across to XPO.”

MotorTransport 3

News

motortransport.co.uk

New ownership accelerates network’s plan for growth as revenue and volume levels increase

TPN positive under Eddie Stobart

By Carol Millett

The Pallet Network (TPN) has hailed its acquisition by Eddie Stobart Logistics (ESL) in June 2018 as a positive move that has opened the door to accelerated growth.

Despite ESL’s continued financial turmoil, TPN revealed that it delivered a turnover of £84.3m in a reporting period spanning only eight months to 30 November 2018. This compared with a turnover of £107m for the full year to 31 March 2018, while pre-tax profit in the period stood at £3.2m (March 2017: £5.4m).

In its strategic report of the results, TPN said: “Being part of ESL positions the business well to further extend and evolve its offer to both members and their customers alike. The complementary nature of the new ownership further facilitates and accelerates

the business’s plan for continued growth and to be recognised as the number-one pallet network.”

The report added that TPN had seen strong revenue and volume growth in the period with service levels also rising “during a period of strong pallet growth”.

TPN was bought for £52.8m by ESL in June 2018. A year later, financial troubles at ESL saw the company’s shares suspended, a profit warning issued and chief executive Alex Laffey stand down.

TPN’s acquisition saw a cash payment of £44.14m payable with

the remaining £8.66m payable to “certain sellers over a period of two years following completion”.

The sellers were listed as LDC, Neil England and the TPN management team of Mark Duggan, Paul Robinson and Mark Kendall.

At the time of the sale, TPN had processed more than 3.9 million pallets in the year to 31 March 2018.

■ TPN has signed up West Bromwich-based Hampson Haulage. The company, which offers Hiab, flatbed and curtainsided vehicles, entered into palletised freight distribution to give customers “a more complete service”.

Director Paul Hampson said: “Diversifying into pallet network business allows us to offer something new, yet complementary to existing clients.”

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HSE to prosecute Reason Transport for pallet delivery driver death in 2016 Reason Transport is facing charges under the Health and Safety at Work Act following an HSE investigation into the death of driver Petru Pop in November 2016.

Pop died while making a delivery to a residential address in High Wycombe on behalf of Reason Transport. He was crushed to death beneath a 1,100kg pallet of tiles that he was attempting to unload from the truck.

Family firm Reason Transport was a Palletways member at the time of the accident. The Coventrybased haulier left Palletways and joined Palletline in May 2018.

An HSE spokeswoman told MT: “Following HSE’s investigation into the death of Petru Pop, a prosecution is being brought against

4 MotorTransport

Reason Transport UK. The company will face charges under section 3 (1) of the Health and Safety at Work Act.” The court case is set to open on 3 April at Reading Magistrates’ Court. However the HSE spokeswoman said the case could be delayed due to the coronavirus outbreak.

Section 3 of the Health and Safety at Work Act places general duties on employers and the selfemployed towards people other than their employees.

HSE has been working with the pallet network sector since 2015 to create industry guidance to address rising industry concern about the lack of weight limits on pallets designated for tail-lift deliveries, particularly to domestic addresses.

In 2018, after conducting an investigation into pallet weights for tail-lift vehicles, the HSE recommended no limit on pallet weights and a requirement that drivers make a risk assessment of the safety of each tail-lift delivery.

The recommendations were passed to the pallet weight working group, which put together draft guidance, which has yet to be published.

TUESDAY, MARCH 22nd, 1920

Motor Transport was launched in 1905 as Motor Traction. We look back at a story published 100 years ago this week.

To Reduce Excessive Transhipment Labour.

For many classes of goods traffic transhipment involves far more direct labour than does the actual transport.

The work done in transferring a load bit by bit between cart and railway truck is amazing, yet we accept it without question because we have always been used to it. Take the case of a load of bricks, for instance. How often have we seen two or three men laboriously passing a load handful by handful of about nine or twelve at a time? It takes a long time to shift a thousand bricks this way, for bricks must be packed as well as moved. Again, take the case of any bulk load like coal, sand, or loose stone, and watch it being laboriously shoveled from one vehicle to the other at any but the big terminal stations. Most of this work might be eliminated if only the loads could at the outset be put directly into containers, transferable from road to railway vehicle.

23.3.20

SUPERHUMAN Day in day out, mile after mile... ...superior comfort goes a long way.

The new MAN TGX. With the new MAN TGX drivers enjoy unbeatable comfort while meeting their superhuman challenges. The revolutionary cab design is equipped with innovative features like MAN SmartSelect infotainment and a digitised cockpit with two 12 inch colour displays. It’s a design philosophy built around the people that rely on MAN every day and one we call #simplymytruck 7R ÀQG RXW PRUH YLVLW truck.man.eu/mantg

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COVID-19

motortransport.co.uk

Supermarkets get night-time clearance

TESTING TIMES: Logistics companies are paying thousands of pounds to private clinics to test their drivers and warehouse staff for the coronavirus in the absence of widespread testing for the disease by the NHS. The test, which costs £249, follows government guidelines prescribed for the testing of COVID-19 and is recognised by Public Health England (PHE). Customers are sent mouth swab kits that are returned by post to a UKAS-accredited laboratory, with results emailed back.

However, Rod Mckenzie, RHA MD of policy and public affairs, told MT: “I am unhappy at private companies charging lots of money for these tests that may not be as verified as the NHS tests and which could cause companies to waste a lot of money. We keep hearing from the WHO that testing is important and the government is changing its position on this to hopefully make tests more widely available, which will be good.”

Jigsaw calls on hauliers to help distribute increased volumes across UK

Use your spare capacity EV Cargo company Jigsaw is calling on UK hauliers with capacity to help deal with the company’s increased national food and beverage volumes.

“As the likelihood of an extended COVID-19 lock-down increases, and the UK experiences a significant spike in consumer spending, Jigsaw hopes its boosted volumes will provide additional

support for hauliers being commercially affected by the situation,” a statement said.

The company has capacity for additional carrier resources to assist it manage the distribution of a range of branded FMCG products.

There is an immediate national requirement, the statement continued, with full trailer loads available

from locations across the UK for national delivery and coverage required on a seven-day basis.

Jigsaw has asked hauliers with an existing account to contact the company in the normal way.

Those hauliers without an account should go to the Partner Network section of the Jigsaw website and select a haulier information pack.

Industry needs ground rules for delivery drivers Home delivery drivers should be regularly tested for coronavirus and customers should not sign for delivery on fingertip screens, the head of fleet software firm FleetCheck is warning.

MD Peter Golding (pictured) has called for clear government or industry guidance on the way shopping is delivered to customers.

He said: “We need to establish some sensible ground rules very quickly. Home delivery fleets have a potentially crucial role to play but could also become a problem in themselves. At the most basic level, the act of signing for delivery with 6 MotorTransport

your fingertip on a screen should stop right now.”

Pointing to predictions that internet shopping could increase as mounting numbers of people self-isolate at home, Golding said drivers need to be protected from potentially infected customers and customers shielded from drivers who may be unknowingly carrying the virus. He suggested drivers are instructed to leave deliveries outside the door, then call the customer and make a visual check the parcel has been received or even take an image of the customer receiving the delivery.

The government has given supermarkets the go-ahead to ramp up night-time deliveries to ensure stores remain stocked during the coronavirus outbreak.

The emergency measures will see delivery hours to supermarkets extended into the nighttime curfew to help food retailers respond to increased demand for long-life food and hygiene supplies.

Environment secretary George Eustice said: “By allowing night-time deliveries to our supermarkets and food retailers we can free them up to move their stocks more quickly from warehouses to shelves.

“Our retailers have well-established contingency plans in place and are taking all the necessary steps to ensure consumers have the food and supplies they need.”

Natalie Chapman, head of urban policy at the FTA, said: “It is a practical and sensible approach to support retailers during this period of unprecedented demand for basic items.

“The FTA has been urging the government to enable restrictions to be relaxed on night-time deliveries for several years. We hope this temporary measure will soon be considered for permanency.”

Scheme suspended

The London Lorry Control Scheme has been suspended to ease the passage of goods into shops and supermarkets during the coronavirus outbreak.

London Councils said the decision to cease enforcement of the scheme, which controls the movement of lorries at night and at weekends, was made in response to concerns by the industry, as well as government calls to lift restrictions.

The suspension is in place until 30 April, but London Councils said it would be reviewed.

23.3.20

Focus: warehousing

motortransport.co.uk

Surge in speculative and build-to-suit development boosted market as demand increased

Availability improved in 2019

Greater levels of speculative development improved availability for those looking for warehousing in 2019, despite increased demand from occupiers.

Research from Savills – which pre-dates any effect from the coronavirus outbreak – shows that last year saw the supply of warehouses

over 100,000sq ft rise by 12.3% to 35.79 million sq ft, which is a vacancy rate of 6.65%.

This was partly because there was 8.8 million sq ft of speculative development completed during the year.

Currently there is another 6.56 million sq ft under construction.

Build-to-suit development also played a significant role in the market.

Savills said that this came at a time of high demand. Take-up last year was 34.2 million sq ft, which is 31% above the long-term average, mainly due to the popularity of mid-range warehousing.

“The key driver of demand came from units between 100,000sq ft and 200,000sq ft, which accounted for 35% of all the space transacted,” the report said.

By contrast, deals involving warehouses above 500,000sq ft fell by more than a quarter to 9.84 million sq ft.

Gazeley expands at Magna Park

High demand spurs south-east development The high demand for warehouse property in London and the southeast has encouraged developers to buy sites both for speculative development and to construct build-to-suit warehouses for particular occupiers.

However, the pressure on land use in the region has meant that availability remains tight and has declined over the past year in the capital itself.

Those taking space include global freight forwarder Noatum Logistics, which has signed up for a purpose-built 150,000sq ft facility at London Medway Commercial Park in Kent. This will serve the retail and e-commerce markets and will include a further 225,000sq ft of mezzanine floors once it is completed by the end of the year.

In Biggleswade, Bedfordshire, Tritax Symmetry has begun construction of a 661,000sq ft regional DC for the Co-op, which will be fully operational in 2022 and will support the retailer’s 8 MotorTransport

growth in the south-east. Such deals have increased demand figures in the region. According to research from Cushman & Wakefield, take-up of warehouses over 50,000sq ft in London, the south-east and east of England, was 7.9 million sq ft last year. This was the third-highest figure on record, after 2018 and 2008.

The market was stimulated by the availability of speculatively built warehouses, which amounted to 4.1 million sq ft across the region.

“In fact, over 3 million sq ft of spec space was taken across 23 units during the year,” the report says.

Overall availability was stable at 13.2 million sq ft. It rose slightly by 3% in the south-east/east but fell by 19% in London.

Developers are keen to exploit any demand, with many buying land and pushing ahead with plans for the region. Panattoni, for example, has bought a former paper mill in Aylesford for £75 million, where it plans to develop 1.6 million sq ft of space on 100 acres.

Gazeley has bought a 25-acre site in Bedford, to be known as G-Park Bedford Wixams, which will consist of three units totalling 534,000sq ft. These will be complete by Q3 this year.

Some of the development taking place is on a smaller scale.

Wrenbridge and pension fund RPMI Railpen plan to develop 180,000sq ft in five warehouse units at The Bridge in Dartford.

At Blackthorne Point near Heathrow, Aberdeen Standard Investments has received planning consent for a 27,000sq ft warehouse called Black Arrow, to be developed by its specialist airport-related AIPUT fund.

Developers and landlords are also keen to find urban logistics property, if they can. Prologis, for example, has bought Ravenside Retail Park in Edmonton, north London (pictured above), and plans to convert 128,000sq ft of shops into online delivery centres in the medium to long term.

Gazeley has announced plans to expand its Magna Park Lutterworth logistics park from 9 million sq ft to 16 million sq ft.

The company has the potential to increase the southern side of the park by 2.8 million sq ft and is developing three speculative units of 300,000sq ft, 126,000sq ft and 98,000sq ft, which will become available in the autumn. It also plans to construct a further 746,000sq ft subject to planning.

In addition, there are 225 acres of land on the northern side of the park that are being offered as build-to-suit development. These could accommodate up to 3.3 million sq ft in buildings from 100,000sq ft to 1 million sq ft.

Gazeley development director Bruce Topley said: “In light of the continued high demand for logistics space, particularly in this area, we are confident that these buildings will be a welcome addition to the market.”

The company also has plans for a 312,000sq ft speculative building (pictured) at its other Magna Park development, in Milton Keynes.

This will be known as Magnitude 312 and will have parking space for 195 HGVs, along with the potential to build four mezzanine levels inside.

23.3.20

From keeping up with regulations to optimising time on the road TomTom Telematics is now Webfleet Solutions

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JOHN SMITH Other work since 15:48 (7min)

DETAILS

WORKING TIME

OPTIDRIVE

WORKING TIME Milton Keynes (Willen), MK15 9, UK Other work since 15:48 (7 min) Total today 7h 4 min

RDT TODAY Remaining driving time 2h 56 min Next break 18:31 Next rest period 21:57

RDT NEXT WEEK Remaining driving time 56 h

Since our launch 20 years ago, we’ve grown to become a global leader in telematics, helping over 50,000 businesses manage vehicles and maximise productivity. Having recently been acquired by Bridgestone, we now change our name from TomTom Telematics to Webfleet Solutions.

Our goal remains the same: to innovate fleet management and build the future of mobility solutions.

Let’s drive business. Further.

webfleet.com

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19/9/19 19:04

News extra

motortransport.co.uk

OTC and the DVSA refute suggestion that they fail to communicate adequately with operators

Traffic commissioners DO comply with Code Much of James Backhouse’s piece (MT 9 March 2020, ‘Who regulates the regulators?’) appears to conflate DVSA and the traffic commissioners (TCs) together and confuses the role of the regulators with that of the enforcement agency.

Nonetheless, there are some points that we would like to address. Firstly, Mr Backhouse’s comments about the level of Office of the Traffic Commissioner (OTC) communications with the industry. He claims that many changes of policy adopted by DVSA and the TCs are introduced with little industry awareness.

We obviously cannot speak for the DVSA, but OTC makes every possible effort to communicate with the industry, both in seeking input to consultations and in raising awareness of the law. We engage regularly with transport industry trade bodies and make every effort, where proportionate, to canvas the widest possible set of views when undertaking consultations.

In particular, we would highlight the work we did in consulting around Vocational Driver Conduct, for which we sought the views of a wide variety of stakeholders, which also received coverage in trade media. We would also point to the work OTC did to prepare hauliers for leaving the EU and to raise awareness of the importance of brake testing. The latter has yielded significant improvement in braking failures at annual test across the industry.

Looking for improvement

But we’re always looking to improve. To increase the effectiveness of our communications, we have overhauled our privacy policy, allowing us to make better use of the information we hold. This includes sending all operators targeted compliance information, which will help keep them informed – including about consultations. We are also introducing a series of email messages for new operators to give them compliance advice and guidance. These will start being sent in April. All operators can sign up for email alerts on the OTC website and we would urge them to do so.

Secondly, there are Mr Backhouse’s comments on the guidance available from the TCs. He is right to say that the senior TC’s statutory guidance and statutory directions documents are legalistic – this is how they must be. To suggest otherwise would overlook the law under which they are issued. They are drafted to provide greater transparency to the way in which TCs approach their judicial duties and set the framework for instructions to members of staff acting in support of the TCs. The suggestion that simplified, plain English versions should be available also misses the point that OTC is a small organisa10 MotorTransport

share information about compliance. We agree that ‘The Guide to Maintaining Roadworthiness’ is excellent, but it is just one of many such pieces of guidance to which the TCs have and will continue to contribute. TC for the West Midlands Nick Denton (left) has also fed in to DVSA’s seminars for new operators.

Talking in code

tion with finite resources. Our priority is making the operator licensing regime run smoothly. You only need to look at the efforts of OTC staff in addressing current times for processing licence applications and scheduling public inquiries (PI).

The limits placed on OTC resources mean that feeding in to DVSA’s work is the most practical way we can produce guidance and

Lastly, we do not accept Mr Backhouse’s overall argument regarding the scope and application of the Regulators’ Code. It does not apply to civil proceedings, which includes PIs held before the TCs. By selectively quoting from a finely balanced set of principles, Mr Backhouse risks contradicting the duty outlined in paragraph 1 of the Code that “regulators should carry out their activities in a way that supports those they regulate to comply and grow”. The intention of the Code is to reduce regulatory burdens and support compliant business growth. If regulators were required to provide exhaustive guidance on every element of compliance, it would result in an over-prescriptive environment, which would be disproportionately expensive to the operators whose fees pay for operator licence regulation.

The Office of the Traffic Commissioner

DVSA POLICY IN-LINE WITH CODE All DVSA enforcement staff work from a policy framework which is written to be compliant with the Regulators’ Code.

The DVSA always welcomes ideas on how we can improve the ways we consult and communicate, but it is aware that in 2019 an operator relationship survey found “nine in 10 operators are satisfied with the DVSA/government website or the DVSA ‘Moving on’ blog”.

DVSA guidance is available for subjects such as drivers’ hours monitoring and load security, but these can be backed up with commercially available monitoring systems and training.

The DVSA and traffic commissioners have refreshed the new operators’ seminars, which clearly and comprehensively set out operator responsibilities.

To communicate and engage with operators DVSA frequently: l updates the gov.uk website with any new guidance, as Mr Backhouse mentions the ‘Guide to Maintaining Roadworthiness’ is a good example; l emails operators who have signed up to DVSA email news and alerts with links to the new guidance (this gains an enviable level of engagement from operators); l writes blog posts explaining the changes to guidance or rules and shares this on email alerts and social media; l engages and consults with FTA, RHA and other stakeholder groups, as well participates in the Heavy Vehicle Industry Forum (the ‘Stanmore meeting’) which is attended by operators also; and l shares information via industry media such as MT. Transport managers have a professional obligation to stay updated on industry changes and they can do this by engaging in the above ways or seeking training and guidance where needed Gordon Macdonald, head of enforcement policy, DVSA 23.3.20

SEE THE FUTURE OF COMMERCIAL ROAD TRANSPORT IN 2020

Discover how innovation can assist businesses big and small to increase efficiency and service delivery.

With all the latest technology in vehicles, trailers and equipment on display, this year’s CV Show is even more unmissable than ever.

Visitor registration opens in January 2020 at cvshow.com @TheCVShow

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25/11/2019 11:05

Viewpoint

motortransport.co.uk

The rising cost of coronavirus A

week is a long time in politics they say, and 11 days was certainly an age in the coronoaviris epidemic last week. After pledging £30bn to ward off the effects of coronavirus in the Budget on 6 March, by 17 March the chancellor had Steve Hobson upped the ante to £330bn. He hinted strongly that this would not be the end, with Editor his new mantra “whatever it takes” Motor implying that there was virtually a Transport bottomless pit of public money to keep the UK working.

Quite where this new money tree has been found isn’t clear but after all the fuss over Brexit it is now obvious that coronavirus has well and truly pushed our departure from the EU in December out of the headlines.

When the UK economy goes into freefall, road transport goes with it. Coronavirus is, however an odd crisis as supermarket deliveries are under such pressure the government has relaxed drivers’ hours rules, something MT did not support.

Hauliers serving the hospitality and

leisure sectors are parking up trucks and laying off drivers – surely it must be possible to transfer these drivers to grocery deliveries rather than make existing drivers work longer hours.

While the £330bn package of loans, business rates deferral and even cash grants will apply to hauliers as much as any other small business, the RHA is calling for a specific set of measures targeted on road transport. These include deferral of the introduction of clean air zones and the Direct Vision Standard in London.

It is ironic that while coronavirus has killed just over 3,000 people in China it is estimated that 50,000 more Chinese are alive because the manufacturing shutdown has drastically reduced air pollution.

While it is quite legitimate to debate the merits of clean air zones and Direct Vision in achieving their aims of savings lives, and argue for more financial support to help operators upgrade vehicles, it is surely counter-productive to trade off health and safety for purely financial reasons.

Investment will make us think electric R

ecent figures revealed an astounding rise in global demand for electric vehicles, with sales of non-hybrid cars increasing by 92% over a 12-month period.

This is perhaps the clearest sign yet that battery electric vehicles (BEVs) are finally a Julie Furber viable alternative in the consumer sector.

Vice-president, This growth story focuses on consumer electrified passenger vehicles, but this neglects the power, significant opportunity from the Cummins electrification of commercial fleets.

Increasing the share of cars that run on electric powertrains generally demands educating and winning buy-in from consumers on a one-by-one basis.

Commercial fleets, by contrast, can be transformed more cohesively, in large tranches at a time. With 35% of the UK’s transport emissions coming from lightduty vehicles, HGVs and buses, there is a valuable and under-considered potential to diversify the country’s traffic towards low-emissions vehicles.

The electrification of commercial vehicles depends on four factors – technological maturity, economic reality, regulatory surety, and infrastructural capacity – and some types of commercial vehicles are closer to meeting these four factors of readiness than others. In HGVs,

for instance, the mass and volume that a sufficiently powerful battery pack would take up may prevent the vehicle from transporting an economically viable quantity of goods. As a result, diesel and other power solutions are likely to be part of the transport industry’s energy mix for the foreseeable future.

Other blockers, however, are more tractable. Because the technology stack that makes electric cars viable translates well to buses and vans, moving the needle on infrastructure and policy issues could unlock significant changes – expanding the charging-point network, especially outside urban areas, is just one example. There is also potential for government policy at local levels, similar to London’s Ultra Low Emission Zone, to help generate the critical mass needed for the transition to commercial electrification.

The commercial vehicle sector will require greater investment in infrastructure to ensure the economics work for companies looking to decarbonise fleets.

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 Events and projects editor Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Joanne 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 Cullum 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.

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23.3.20

From 26th October 2020, ALL goods vehicles over 12 tonnes will require a permit to enter London.

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HUGE MUSIC LINE-UP Our Saturday night music line-up will feature a huge variety of bands and music, plus sidesplitting stand-up comedy in our big top tent.

1,000 SHOW TRUCKS The entire venue will be crammed with one of the UK’s biggest gatherings of spectacular show trucks displaying stunning liveries, including incredible artwork and sparkling chrome.

MANUFACTURER STANDS Leading truck manufacturers including Scania, MAN, Mercedes-Benz and more will join the Convoy, displaying their latest state-of-the art models for visitors to browse.

KIDS’ ENTERTAINMENT There’s plenty for children of all ages to enjoy. We’ll be screening kids’ movies throughout the weekend, and daredevils can try their hand on the climbing wall. Look out for circus performances and roaming kids’ characters too!

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Marketplace motortransport.co.uk

Thomas Hardie Used Trucks unveils website with 360-degree vehicle views and updated CRM

Sales get a virtual boost

By George Barrow

Thomas Hardie Used Truck has launched a new website incorporating a 360-degree view of both the inside and outside of the vehicle for sale.

The website launch comes as Thomas Hardie celebrates its 25th anniversary of being a used truck dealer, and its 35th year of being a Volvo franchise. It took more than six months to develop with extensive testing before it was finally launched on 14 February.

“We’re always looking for improvements, and if it works for us and our customers we will do it. It’s one of the reasons why we have introduced loads of new features to the site to help improve the experience for our customers,” explained Jonathan Bownes, Thomas Hardie Used Truck business development manager.

Alongside a traditional gallery, as well as video of the trucks, the new 360-degree view feature enables used truck customers to

take an even greater look at the stock on offer.

“It’s great on a desktop, but it works really well on a tablet where you can control the 360 view with your f inger,” added Bownes. “It’s something I’ve not seen before for trucks, and something that passenger car dealers are only just doing. I think it’s an industry first for the truck sector. The analytics show a huge spike on the day it was launched but I expect it might take as long as seven or eight weeks to really see how people are getting on with the new design.

It’s a really interactive site, and the more time people spend on the site the more they’ll get out of it.

We’re really big into our social media, and the new website plays

on that with blogs and testimonials.

“The intro [video] will also change, with the seasons. We want to make it interactive and intuitive, something that encourages interactions and people to come and visit. We’ll be running competitions as well, and of course helping customers get the right used

truck,” Bownes continued.

The website is not just cosmetic, though, as the back office has also undergone a complete overhaul, something which Bownes says will really help the sales staff’s dayto-day roles.

“It comes with a CRM system which has revolutionised how we upload the stock. Our systems were based loosely around Microsoft Word and Microsoft Access, but we found that the more trucks we were selling the more tiresome it became. The need for a new back of house probably drove it a lot more than the front end, but it’s nice to have been able to do both. The sales team can now be more efficient, and it allows us to dedicate more time to customer care,” Bownes added.

Moody leads the way with first Ford F-Max sale in UK Moody International has sold a left-hand drive Ford F-Max 4x2 tractor unit in the UK for £75,000.

Although the F-Max is currently available in most of Eastern Europe, Italy, Spain and Portugal, Ford has no official plans to sell the Turkish-built trucks in the UK. The Grimsby-based truck dealership sources them from a Ford dealership in Poland. They are covered by a three-year unlimited mileage warranty, which includes breakdown and recovery.

“Keeping these trucks maintained over here is not hard,” said owner Mick Moody. “TIP UK has been licensed by Ford to use its maintenance software and to train mechanics to work on the F-Max. And TIP’s branches are around every corner.”

23.3.20

The F-Max, which was crowned International Truck of the Year 2019, uses Ford’s Euro-6 12.7-litre engine, producing 500hp and 2,500Nm of torque.

Safety features include lane departure warning and emergency braking. The sleeper cabs have twin bunks, climate control, satellite navigation and, according to Moody, “a really good engine brake”.

The F-Max’s height and width meet UK type approval.

“It’s a lot of truck for the money.

And it’s not far off a Volvo and Scania to drive either – it’s really smooth and definitely one to watch,” said Moody.

“I believe that if Ford was to offer a 6x2 and a 4x2 F-Max over here, they’d take off.”

MotorTransport 17

Marketplace news

motortransport.co.uk

Volvo adds peace of mind with extended warranties for used trucks Volvo Used Trucks has added the option of an extended warranty package to its full range of used commercial vehicles.

Currently Volvo Economy used trucks come with a six-month unlimited mileage warranty covering the basic driveline, while Volvo Approved used trucks get a more comprehensive 12-month driveline warranty up to 180,000km. Volvo Selected used trucks have a 24-month driveline warranty covering 360,00km.

The new extended warranty, available at an additional cost, will now cover Economy vehicles to 12 months, Approved trucks to 24 months and Selected vehicles to 36 months.

Volvo Used Trucks Economy Centre manager, Steven Worts, said: “Some of the trucks can have up to 1m km on the clock so to be able to extend an Economy vehicle to have a 12-month warranty is a really big deal.

“It’s good to now be able to offer

people the option of that extra coverage.

We underwrite our own warranties and felt it was something worth looking at, and it shows that we really back our products throughout their life, as our basic driveline warranty even includes the AdBlue system.”

The option of an extended warranty on Volvo Used Trucks was made available from the beginning of 2020 and will be priced according to the individual vehicles.

Truck converter Power Engineering has developed an African spec Scania G-series for export

Scania exports conversions...

By George Barrow

Peterborough-based Power Engineering – known as a specialist truck converter for African markets – has developed an African spec Scania G-series suitable for export.

The 410hp tractor unit is a 6x2 with rear tag-axle, and follows in the footsteps of the company’s Mercedes-Benz Actros MP4 conversions. The Actros MP4-AS (Africa Spec) conversions which get raised suspension, an additional fuel filter (to compensate for the lower grade diesel available in Africa) as well as a water separator, also get a 6mm thick steel plate radiator guard along with a heavy-duty front bumper.

The Scania has had a similar amount of work done to it in order to meet the needs of customers in

Kenya, Tanzania, Rwanda and Zambia. Crucially, the conversion also includes de-rating the engine from Euro-5, something which many other exporters don’t necessarily do – instead bypassing the AdBlue system and tricking the ECU into thinking it is still dosing the exhaust.

Power Engineering owner Colin Gill explained: “Rear tag-axle is where the market is going because of axle loading laws penalising midlift that came into force in East Africa. When you’re travelling so far, the cost per tonne escalates, and a lot of our customers are in the fuel industry where they get about $150 per tonne. It means the returns can make a big difference.

We normally say that the conversions we do are paid for in a year.”

...and plans to expand its Inverness dealership Scania is considering plans to invest in its Inverness dealership to keep pace with continued growth in truck sales and servicing.

James Colbourne, regional executive director for the whollyowned eight-strong dealer network in Scotland, says growth means Inverness would benefit from extra workshop space.

Originally built in 2015, the site includes an ATF lane used once a week by DVSA examiners for Scania customers that then becomes a workshop bay during the rest of the week. Scania’s ATF is one of two in Inverness.

18 MotorTransport

“The challenge is whether or not we can add an additional bay at the end as a dedicated ATF,” said Colbourne. “This would improve

servicing hours for customers and provide more test slots for local operators.”

Meanwhile, Paul Smith, who

has been with Scania for more than 26 years, is now the group’s head of truck sales. He said: “My role now brings the sales team closer with marketing, finance and aftersales, creating one force and bringing everyone together.”

Chris Black has moved up from his role as general manager at Scania Glasgow to take on the new position of area services manager covering the west of Scotland.

He will work closely with depots at Bellshill, Dumfries, Glasgow and Inverness, on staff and customer satisfaction, and promoting the network.

23.3.20

Marketplace

motortransport.co.uk

Crawl, walk and then run When Renault Trucks brought the dealership franchise in Bellshill back into the fold, Peter Murray was given the task of bringing it up to speed. Kevin Swallow reports

B

ack in 2017 Renault Trucks strengthened its presence in Scotland by bringing the franchise at Bellshill back inhouse. Trading as Renault Trucks Scotland, the man named as dealer principal was Peter Murray (pictured).

A time-served mechanic, he later crossed over into sales and has been with Renault Trucks since 2005 in a number of roles, including key accounts and regional business manager, before heading up the UK and Ireland truck and van network as retail sales director.

Following Scot Trucks’ liquidation in 2011 and subsequent purchase by Border Trucks (Carlisle), Bellshill became a service and repair centre in all but name, with sales support provided by the manufacturer.

Murray admits that customers had lost faith with Renault Trucks as other manufacturers invested in their network in Scotland, and that staff were left in limbo over their long-term future.

23.3.20

Now in to his third year, Murray has made significant inroads into the marketplace. The long-term plan is to first match Renault Trucks UK’s market share, and he firmly believes he can then improve on this in Scotland in the next two to three years.

Even though he had been working in Warwick at the manufacturer’s head office for several years, he commuted from his base in Scotland. “The challenge was to get out to customers and let them know something had changed,” he says.

“First, we had to provide assurances to customers that Renault Trucks is committed to a long-term future in Scotland and to provide better levels of service and more flexibility than previously offered. Second is securing new business with prospective customers and we have been successful at this already.”

He explains: “We invested £250,000 on day one. The site was upgraded with new lighting, a new brake tester and rolling road, we modernised the equipment and working environment and we updated the signage.”

Head count

A new sales team raised the head count from 15 in 2017 to 21. Operating with four double bays plus a dedicated van bay, the workshop is open from 6.30am working on a two-shift operation. Each shift uses three HGV technicians, an apprentice and a shift supervisor plus a dedicated, day shift LCV specialist, all reporting to the workshop controller, Gordon Heeley.

Since Renault Trucks took over the franchise, the dealership has almost doubled the number of service hours sold.

“The decision was made to extend the opening hours to 11.30pm during the week, which increased the number of servicing hours available and made the operation more flexible,” Murray says.

Sales targets have been incremental. Registrations doubled in just 12 months to more than 100 and rose again by another 50% through 2019.

“In addition to new vehicle sales we have a used truck specialist based here, allowing us to offer our Scottish customers access to the full range of ‘accredited’ used trucks from the manufacturer,” he adds.

Responsibility for truck and van sales is not limited to Glasgow and Bellshill, as Renault Trucks Scotland also ➜ 20 has four repair and servicing partners.

MotorTransport 19

Marketplace

David Philp Commercials is based in Kirknewton, Midlothian; Alex Aiken and Son operates from Peterhead and Aberdeen; Elgin Truck and Van has sites in Elgin and Inverness; and 12 months ago Auto Services in Perth signed up as well.

Brand values

A dedicated sales person works closely with each repairer partner. “Most of our service partners have been a vital part of the Renault Trucks network for many years and they have greatly contributed to supporting our loyal customer base and maintaining our brand values,” Murray says.

“With our most recent appointment in Perth, we have now sold trucks in to a high profile in Dundee, which would not have happened without this service point,” Murray explains, adding that Renault Trucks is committed to supporting its partners who invest in the brand with tooling, equipment and people.

“We need a robust aftermarket network across Scotland and growing our market share across all ranges provides our partners with the confidence to continue to invest in Renault Trucks, and provide even greater levels of customer service and satisfaction,” he adds.

The only area left in Scotland he’s looking to fill is west of Glasgow and out towards the west coast of Scotland from Ayrshire up towards Oban.

He is also concentrating on boosting the parts portfolio. Renault Trucks Scotland can offer ‘all makes’ parts utilising the Volvo Group’s Roadcrew offer, which includes truck and trailer parts, accessories and consumables.

“With BRS, also part of Renault Trucks, we have an operations manager based here, servicing some highprofile national accounts. In addition to finance and leasing options for vehicle procurement, we can offer the full range of contract hire and vehicle rental options,” Murray says.

“With the demise of TOM and Gulliver’s Truck Rental, I see an opportunity to support our growing customer base in this way,” he adds. ■ 20 MotorTransport

motortransport.co.uk

STANDING OUT FROM THE CROWD

Renault is placing more emphasis on its used truck sales and has seen significant success in using special editions to help entice buyers towards used vehicles.

With more than 1,200 trucks returning to Renault Trucks through its Coventry dealership, it’s fair to say that the used truck business is busy for the French manufacturer.

The contract returned vehicles come in all shapes and sizes, but there is, according to Neil Willis, national brand and retails sales manager at Renault Trucks, a “lack of variation in the spec” of those returning vehicles.

“We get a big list of trucks and the only thing that separates them all is the number plate and the number of kilometres,” Willis explains. “They’re all white and identical specification.

“When a customer buys a new truck, they can pretty much buy a truck to the spec they want, but when they buy a used truck it’s been specified by someone else. We were looking at all of these similar trucks and wanted to make them more desirable.”

The solution was to introduce a range of new special editions, playing to the strengths of the Renault Range T, which has become particularly popular among owner-drivers in recent years.

“The Renault is appealing more and more to the owner-driver now, whereas in the past we were always seen as a cheap and cheerful fleet truck, it’s now a nice-looking truck and if you add a few extras it’s a really good-looking truck.

There are groups on Facebook with owner-drivers who on a daily basis are photographing their trucks, there’s quite a following for the Range T. These special editions are to give us stock variation and to appeal to the people that are now showing interest in the truck and doing something themselves to make their vehicles stand out.”

With around £8,000 invested in each of the special edition versions that have been built, they’re all far-removed from the bare white tractor units that arrive back at the Coventry depot.

“When you get a batch of, say, 50 trucks, the first five to 10 sell very quickly and tend to sell based on their mileage. You then have to find buyers for the rest but before you know it there’s another batch arriving and the other ones get pushed down the pecking order. By transforming them into special editions it brings them to the front of the queue. If you were to add all the cost up, it would be close to £8,000, but we’re only passing on about £4,000 of that,” Willis explains.

They’ve been successful too, with Lightening Edition vehicles as well as Quartz Edition and Satin Edition trucks all finding buyers and transforming the ranks of identical white Renaults into something much more attractive.

23.3.20

Insurance

Rogan/JMP/Shutterstock

motortransport.co.uk

A risky business Self-insurance sounds like a perfect solution to rising insurance costs. But while it can indeed lower your premiums, it also puts fleets into a risk bracket few can really afford. Robin Meczes reports

T

he rising cost of motor insurance has been a problem for many truck operators for years. Comprehensive cover can typically set you back somewhere between £2,000 and £10,000 per vehicle, depending on your circumstances, while clients are facing hikes of about 20% on average in their premiums this year alone – and in the worst cases up to 50%, MT understands.

Some fleets have therefore considered self-insuring to a greater or lesser degree, in order to bring their annual insurance costs down. But is such a move advisable?

The answer depends on what degree of self-insurance you opt for, how good you are at managing your own risk, and what level of savings you can expect to make as a result.

Self-insurance in its simplest form involves no more than an insurance policy with an excess on it. A £500 excess on any claim for damage on your own vehicle is not uncommon and that level of self-insurance can be increased on a sliding scale, up to and including a thirdparty-only policy. You can, if you wish, arrange certain excesses on the third-party element of your cover, too.

And in the past, you could even go the whole hog and insure yourself 100% – though, as of last year, a change in the law has removed this option (see page 30).

Where a fleet takes on any level of liability that normally falls on the insurer under a traditional comprehensive policy, it obviously removes some risk for the insurer and therefore results in a lower premium. But the savings to be made are probably not as much as many think.

Most of the sources MT has spoken to agree that of a typical premium, about 70% goes towards paying for the cost of claims across their book, while the other 30%

23.3.20

goes towards their costs and profits – though profits are proving elusive to many motor insurance providers in the UK and are likely to account for no more than 3% to 4%, if that. Of the claims portion, about 80% will be accounted for by third-party claims, while only 20% is about the insured’s own vehicles. Simply raising an excess from £500 to £1,000 on own-vehicle damage, therefore, is unlikely to yield a massive saving for the insurer or the premium-payer, because the majority of the risk – that hefty third-party exposure – remains. Even a full thirdparty-only policy can logically save you only 20%, plus the insurance premium tax (IPT) that applies to it.

While this can still be a valuable saving (not least given that IPT already adds 12% and is expected by many to rise to VAT-like levels before long), you also need to consider the costs involved – most obviously, the cost of any claims you actually incur, and the management costs involved in handling things yourself.

Blame game

Managing your own claims can save you money. You might, for example, be prepared to argue with a third party over blame in an incident that your insurer will simply pay out on and then penalise you for; and you might also be able to get repairs done more cheaply by nominating your own repair centre (especially if you run your own workshop). But managing claims can soak up a good deal of time, and you might not benefit from the same discounts insurers can get out of suppliers – for example, from third-party workshops.

Clearly, if you are going to self-insure, it makes sense to put money aside to cater for the claims and costs. How much is a tricky question, however. If you know your own claims history then you can make a pretty good estimate of future costs, says Matthew Warden, area director, specialist motor at broker Towergate Insurance.

“Data is key. You need some history over a number of years to forecast the frequency of loss and the costs of that loss,” he states.

Not everyone has that data, however. And even if you do, there is always a chance of some unexpected ➜ 30 MotorTransport 29

Insurance

Peter Manning/LNP/Shutterstock

motortransport.co.uk

series of events or an individual catastrophe wrecking your estimate. What if a depot fire destroys all your trucks and trailers in one go, for example?

Deciding how far to take self-insurance can therefore be difficult. Perhaps the best way to decide, says Warden, is to contemplate your pain threshold. “If, for argument’s sake, that figure is £50,000, then the sensible thing to do is take that as your excess and still insure everything above that line,” he suggests.

One factor people tend to get wrong is the increasing cost of repairing the vehicles themselves, says Keith Kitson, technical consultant, retail broking at Aon. “If you ask the average person in the street what a straightforward front-to-back collision between two vehicles would cost to repair, they will probably be out by a factor of four or five,” he comments. This is partly because the addition of high-end electronics such as sensors has made components such as windscreens and bumpers more expensive and partly because previously individual components, like some body panels, may be supplied as single integrated assemblies these days.

Taking on any element of third-party liability is obviously particularly risky. As the insurance industry is quick to point out, a single at-fault accident that turns a bright young person into a quadriplegic who cannot work and

FULL SELF-INSURANCE OPTION REMOVED Until last year, firms wishing to self-insure their fleets could do so completely using the government’s deposits and securities schemes – sidestepping the need for conventional motor insurance altogether.

These schemes, dating back to the introduction of mandatory third-party liability motor insurance in 1930, allowed those depositing the sum of £500,000 with the Accountant General of the Senior Courts, or arranging for a securitygiver to deposit £15,000 with the Senior Courts respectively, an exemption from the requirement to hold compulsory third-party cover in the UK. Following a consultation in 2018, however, these options were removed by the Motor Vehicles (Compulsory Insurance) (Miscellaneous Amendments) Regulations 2019, which came into force in November. Exemptions to the requirement for compulsory third-party insurance still exist for public bodies such as the emergency services and local councils, however.

A spokesperson for the DfT confirmed to MT that no new deposits or securities are now being granted by the government, but that existing securities and deposits will continue to be acceptable during a transitional period until November 2021. From that point, compulsory motor insurance will be required.

The move will not affect many fleets in the UK: according to a DfT impact assessment from 2018, only six businesses were at that point reliant on the two schemes – and all of those had still taken out motor insurance cover for claims in excess of £250,000 in addition to their security or deposit.

Interestingly, the document predicted that the total additional costs facing those taking advantage of the two schemes and subsequently switching to an insurance policy with a low excess would be between £600,000 and £4.2m a year over each of the following 10 years.

30 MotorTransport

needs care for the rest of their life can easily produce a claim in excess of £10m.

“When you get one of those horrendous, really large claims, and you have someone who is self-insuring, that could be the end of them,” comments Adam Marsh, head of agency and business development at commercial vehicle insurer Direct Commercial.

You can, of course, put a ceiling on your exposure by either limiting the amount of third-party liability you face per claim, or capping your total liability across all claims in any year, over which your insurer will settle on your behalf. But transferring any of the risk back to the insurer obviously diminishes the savings on offer: insurers are happy to avoid the many small cumulative claims they might otherwise face over a year’s business with a fleet – the broken wing mirrors and bashed bumpers – but it is the big, catastrophic-loss scenarios that obviously pose the biggest risk. It doesn’t take too many of these big claims to decimate an insurer’s book, notes Towergate.

Even if you are prepared to take on the risks and selfinsure, you may find you cannot really do so, points out Steve Green, director of Anthony Jones Insurance Brokers.

“You may find yourself trying to win a contract and your client telling you that you must have adequate insurance in place and that third-party cover is not adequate,” he says. “Similarly, finance companies will often insist you buy comprehensive insurance to protect their assets when you buy new vehicles, so you may have no choice.”

Firms going down a self-insured route must be prepared to step up their own risk management to keep their subsequent exposure to a minimum, adds Larry Smith, executive director, specialist motor at Towergate – for example, in terms of such things as driver profiling and training, yard security and key storage, and protective equipment such as reversing cameras.

Deep pockets

Take all this into account and it is clear that, despite rising insurance costs, self-insurance on anything other than a small scale is something that requires careful consideration and planning, and is probably best suited to larger fleets with deep pockets, who have both the resources to handle their own claims and sufficient spare cash to set aside for them.

Other firms looking for ways to lower their insurance costs might be better advised to work on their risk profile and claims history, say the experts, which will ultimately lead to a cut in premiums. There are many ways to achieve this and insurers are increasingly willing to work with fleets to help them improve their claims record, even sharing in the gains it creates.

One good example is the three-year Camatics scheme from Direct Commercial, which involves operators fitting telematics-enabled cameras to their vehicles to help mitigate the cost of claims, in return for which the insurer applies set increases or decreases to the premium after each 12 month period, based on the client’s changing loss ratio. Putting in connected cameras reduces the time and cost of individual claims, weeds out spurious third-party claims and encourages more careful driving style, all of which helps lower the loss ratio, says Marsh.

Premiums are lowered in agreed steps by up to 20% in years two and three of the scheme, while increases are capped at 35%, he says. The savings normally more than offset the cost of the cameras and can compare well with those available via self-insurance without any of the heavy risk involved in that route, he adds.

If you are still determined to look into self-insurance, however, a good starting point is to talk to your broker.

They should be able to help you understand the true nature of your claims history, and analyse how much you might have saved on your premium – and paid out in claims from your own pocket – had you already become self-insured.

23.3.20

INSURANCE BROKERS

Anthony Jones Insurance Brokers Five star Google rated

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The transport and logistics sector never stops moving and nor do we.

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Call us: 0203 802 0819 Or text your name to 07776 40 50 40 and we’ll call you back.

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Anthony Jones Insurance Brokers, Albany House, 31 London Road, Bromley, Kent BR1 1DG Anthony Jones Insurance Brokers is the trading name of Anthony Jones (UK) Ltd who are authorised and regulated by the Financial Conduct Authority

SCOTLAND

Thursday 2 April 10:00 - 14:00 BT Murrayfield Stadium, Edinburgh, EH12 5PJ

The Scottish Government is introducing low-emission zones across Aberdeen, Dundee, Edinburgh and Glasgow by the end of 2020.

We’re running a free half-day roadshow where policy-makers, technical experts and vehicle suppliers will explain how truck and van operators can prepare for these new regulations.

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Accreditation schemes

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Permit to work?

Permit to work?

Specialist road tanker operator Abbey Logistics already has a wide range of accreditations

There is no shortage of accreditation schemes open to hauliers, but how necessary are they and are some just costly box-ticking exercises which are restricting market access in an arbitrary way? Carol Millett reports

O

nce upon a time all a haulier needed to get on the road was an operator’s licence and a truck. These days, rising competition and increasingly demanding clients are seeing many operators turning to accreditations such as Achilles, ISO, FORS, CLOCS and the DVSA’s Earned Recognition scheme to help them stand out from the crowd. But how necessary are these qualifications? And is it right that some schemes can restrict access to certain markets?

Neil Bremner is finance director at Grampian Continental, which specialises in transporting gas and oil. He has no doubt that the Aberdeen-based firm’s three ISO standards and its Authorised Economic Operator status have helped the firm win work.

“While there are lots of hoops to jump through to get them, these schemes aim to raise safety standards in the industry – and this can only be a good thing.

“They also help us stay one step ahead of the competition. There’s a direct correlation between having these accreditations and winning work – without them, you will fail at the first step in this industry – and customer expectations are increasing all the time.”

Mark Chamberlain, MD of haulier John Jempson & Son, believes the company’s recent promotion to FORS Gold is invaluable.

“It has raised driver safety, training and vehicle standards and as half of our work is within the M25, and lots of sites now require FORS Gold, it’s an essential for us.”

But it’s not cheap, he adds. “There’s the driver training day, cycle training sessions, admin and back-office costs – and when we renew next year there will be additional requirements to be met.”

23.3.20

EMMA BARBER: schemes create financial barriers

STEVE GRANITE: the vast majority do add value

Emma Barber, operations director of FORS Silver member Barley Transport, based in Milton Keynes, would like to see costs cut, particularly for smaller operators.

“These schemes are creating financial barriers and opening the door to the big boys getting all the work,” she warns.

Others think the schemes can have a positive financial result. David Archer, head of UK risk and intelligence at contract hire firm Fraikin, argues that a well-run accreditation scheme can actually reduce costs for operators.

“The transport and logistics sector is a process-driven industry, so any accreditation scheme that can streamline those processes and in turn help to manage operational costs should be welcomed by all,” he says. “That said, there is certainly scope for the industry to do more; accreditation, robust governance and realisation of benefits breed business integrity – and as a sector, we can lead the way.

“Increased digitalisation is definitely one area that should be further explored, with projects like DVSA’s Earned Recognition scheme. Fraikin was the first (and only) contract hire and commercial vehicle rental company to get involved with Earned Recognition from the outset, so we are uniquely positioned to see the benefits it offers.

“Now, nearly two years in, the scheme has delivered significant cost-savings for operators by simplifying vehicle compliance processes and increasing efficiency.

The industry should be looking to replicate schemes like this, and the opportunities to do so are certainly out there.”

Specialist bulk liquid and powder road tanker operator Abbey Logistics has a welter of accreditations, including ISO 9001, ISO 14001 and ISO 45001, FORS Bronze (the group is currently going for Silver), the SQAS qualification for the chemicals sector, SCOPA for the food sector and FACTS for the fertilisers sector.

While MD Steve Granite recognises the importance of having accreditations, he makes a plea for greater harmonisation between standards.

“The vast majority do add value but there’s ➜ 34 MotorTransport 33

Accreditation schemes

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FORS BRINGS UNEXPECTED BENEFITS Suttons Transport is a Bronze and Silver FORS member. MD Michael Cundy says FORS has helped the company win work and stay ahead of competitors and has brought other unexpected benefits.

“It has helped boost staff morale. The drivers really bought into the FORS cycle training and that inspired them to get together and organise a charity bike ride.

So it was a good team-building exercise which engaged not only the drivers but also management, the shed staff and our compliance team – we have had great feedback from that.”

Freightlink Europe’s managing partner, Lesley O’Brien, has a similar story. The company is a founder member of DVSA’s Earned Recognition scheme.

“Our drivers are enjoying the challenge and it has really raised the bar. So, for example, our infringement rate on driver compliance was 12%, but under ERS we needed to get it down to 3.5%.

“I thought we would never do it, but our drivers really rose to the challenge and it has not been triggered since. Now every Friday when I put our KPIs on the board it’s the first thing they look at when they come in. It is a point of pride for them.”

certainly scope for consolidating them and recognising equivalence between standards as there is a hell of a lot of duplication.

“I know we can never get one standard to fit all scenarios but individual sectors need to pull together individual bodies and look at how they can co-operate and develop equivalent standards to cut red tape and members’ costs.”

Michael Cundy, MD of Suttons Tankers, which holds both FORS Silver and Bronze accreditations and is working towards Earned Recognition Status (ERS), echoes this view.

“Anything that makes the process simpler would be a good thing. I would like to see some exemptions from some of the levels of accreditation if you have already achieved these under a different body – so more co-ordination and alignment of accreditations would definitely be welcome.”

MICHAEL CUNDY: making it simpler is a good thing

Not convinced?

Iain Mitchell, MD of Grangemouth-based John Mitchell Haulage, has yet to be convinced that his company needs any accreditations.

Like Granite and Cundy, he wants to see greater synergy between schemes to reduce bureaucracy and cost.

“While I am not against the principle of accreditation schemes, I believe there are too many,” he says.

“What I would like to see is an umbrella organisation to audit and monitor the quality of accreditation schemes and make sure they are effective.”

RHA head of licensing Tom Cotton agrees. Pointing to schemes such as the Direct Vision and Clean Air Zones, he says: “I think it is getting out of control. We need consistent, national regulation by government bodies, not parochial schemes dreamt up by local authorities that create an administration burden for operators.”

Cotton is particularly concerned at the increasing influence FORS wields and questions its entry standards.

“The number of FORS operators hauled up before the Transport Commissioners concerns me,” he says.

“FORS is monopolistic and lacks transparency, yet it affects a lot of operators with customers increasingly writing a FORS requirement into their contracts.”

He would like to see FORS replaced by DVSA’s Earned Recognition scheme which, he argues, has more transparency because it is administered by DVSA and regulated by the Office of the Traffic Commissioner (OTC).

Lesley O’Brien, managing partner at Earned Recognition founder member Freightlink Europe, wholeheartedly supports Cotton’s view.

She argues that Earned Recognition’s continual assessment of operators’ performance in real time across a range of KPIs raises standards much more effectively than the form-filling and intermittent on-site audits of other accreditation schemes.

34 MotorTransport

LESLEY O’BRIEN: more reward for the effort it takes

JOHN HIX: formal warnings will be mirrored

“It allows the professional operators to get on with their work and allows DVSA to focus on the serially and seriously non-compliant,” she says.

However, she is keen to see DVSA offering more advantages to Earned Recognition members.

“We need much more reward for all the effort it takes.

We need DVSA to raise potential clients’ awareness of the advantages of Earned Recognition. I want to see clients saying they will take only Earned Recognition operators.”

By contrast, FTA is opposed to any DVSA plans to increase Earned Recognition’s influence, says James Firth, FTA head of licensing policy.

“Our members are particularly concerned that DVSA has recently suggested that the Earned Recognition standard become a procurement standard and we have voiced our opposition to that to DfT.” FTA’s opposition to mission creep extends to all accreditation schemes, adds Firth.

“Our members are concerned about schemes that are needed to access particular areas of the marketplace and about how they are administered and regulated.

“When schemes have a gatekeeper role it raises the question: who are the people making these decisions and are they accountable?”

Using FORS as an example, Firth recalls: “We were fully behind CLOCs but became concerned when the scheme went beyond its original brief via FORS and beyond the construction sector.”

He also has concerns over the entry levels required to join accreditation schemes and the levels of monitoring applied.

Pointing to the FORS operators that have come before traffic commissioners in recent years, he adds: “We worry that these schemes give what the TC has described as ‘false comfort’ to operators and employers.”

FORS director John Hix readily admits some members have come before the TCs, but points out it works hand in hand with the OTC. He told MT: “A formal warning issued by a traffic commissioner, for example, will be mirrored by a formal warning issued by FORS. In 2019, we issued 21 formal warnings, suspended 41 organisations and terminated a further 11. Suspensions and terminations result in an operator losing its entire accreditation – be it Bronze, Silver or Gold.”

Low standards?

But Barber says she would be happier if non-compliant operators were prevented from gaining accreditation in the first place.

“Good companies like ours become accredited for all the right reasons – then you discover there are others in there with very low standards. The entry level requirements and monitoring standards of these schemes need to be raised.”

Last September the OTC issued a clear warning to operators that accreditations cannot be used to mask poor practices, following a number of public inquiries concerning accredited operators.

It stated: “Gaining accreditation elsewhere doesn’t automatically mean there’s compliance with operator licensing requirements. And it hasn’t stopped some operators from appearing at public inquiry.”

Asked for further comment, senior traffic commissioner Richard Turfitt tells MT that while the TCs welcome schemes which genuinely raise safety standards, the O-licence remains the one rule book that has the force of law.

He adds: “Operator licensing is the only regime that imposes legal safety requirements. Traffic commissioners act as strict gatekeepers to protect fair competition and road safety. If you do not meet the operator’s licence requirements, then membership of any other scheme or group will not protect your operator’s licence.”

23.3.20

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