Motor Transport 25 May 2020

Sharp ■ Informed ■ Challenging

25.5.20

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Government needs harder evidence before sector-specific support

Prove you need help

By Tim Wallace

FTA policy director Elizabeth de NEWS INSIDE x 64mm high.indd 0940_MTA advert_celebrate_43mm wide01/04/2020 16:56 Jong 1 has told MT that the government needs more proof that some Safety first hauliers are close to collapse before Contractor fined after fatality p3 it can offer sector-specific support.

Her comments come after an About turn RHA survey revealed 73% of Tarmac does U-turn on rate p4 hauliers have significantly reduced or worse cashflow following the Keep counting Covid-19 pandemic and 83% have Counting the cost of Covid-19 p6 significantly reduced or worse volumes.

Earlier this month, the FTA admitted a fifth of its members OPERATORS INSIDE are facing closure after delays to the government’s Coronavirus Baxter Freight ............................................... p8 Business Interruption Loan Caledonian Logistics ..................................... p6 Scheme.

Clipper Logistics ........................................... p6 However, following talks with Cullimore Group ............................................ p6 ministers, de Jong insisted: “For the moment, the FTA doesn’t have DHL Supply Chain ......................................... p4 enough evidence that sectorEV Cargo ....................................................... p8 specific support is needed.

Osborne Motor Transport ............................... p4 Haulage is seeing signs of a recovery. There will be sector-specific Roger Warnes Transport ............................... p6 support if hauliers can demonStagefreight ................................................. p6 strate it’s needed and that the cross Tarmac ......................................................... p4 economy measures aren’t suffi-

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18/02/2020 10:06

cient. But the bar is very high; we’re going into a deep global recession and, realistically, the government won’t be able to save every business.

“Answer our survey or email us – we’ll build the evidence that you are struggling. We’ll go to the Department for Business, Energy and Industrial Strategy (BEIS) to make those cross-industry measures work.”

Asked why the FTA had declined to co-sign a letter on 20 April from the RHA and other transport industry bodies to prime minister Boris Johnson pleading for more support, she said: “We hadn’t got the same evidence. They were saying approximately 40% of the fleet were parked up and we’re not seeing that.

“We’re in the virtual meetings with the RHA and tackling the same issues, but doing things in different ways because we have slightly different memberships and we think different things work.

We’re focusing on BEIS. We’ve

UNDERVALUED: Just over half of UK HGV drivers feel underappreciated by the public, according to a survey conducted at the height of the lockdown.

The poll, carried out on almost 1,000 drivers by fleet tech firm CameraMatics, found 50.4% of UK truckers believe the public do not value their efforts and just 28.7% felt appreciated by the public. An AA poll found only one in 10 people believe HGV drivers’ behaviour on the roads has improved since the pandemic began. The results from 19,732 respondents showed that only 12% thought lorry drivers were better behaved now than before the lockdown.

been doing in-depth surveys for nine weeks.”

Asked if the RHA’s demand for government loans to be turned to grants would help the haulage sector, she said: “We would all like free money wouldn’t we? It’s not that we say a loan is better than a grant but we know government needs a high level of evidence to get that sector-specific support.”

De Jong also gave an update on the government’s decision to close off major routes in London to lorries, cars and vans to ensure social distancing among pedestrians and cyclists. “The under-secretary of state for transport told me she is willing to update the guidance to consider freight,” she said.

“We are working with officials on that so we can get some bullet points in the main guidance to local authorities. I want it updated to say you need to be thinking about freight deliveries as well.”

■ To see how leading operators are faring during the pandemic, see MT’s survey, page 6.

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Failing to ensure safe working practices led to death of two employees

DVSA slammed for stopping tests The DVSA is refusing to allow operators of authorised testing facilities (ATFs) to help clear a mounting backlog of nearly 100,000 annual HGV and trailer tests created by the Covid-19 lockdown – a move strongly condemned by the RHA and the ATF Operators Association (ATFOA).

The DVSA stood down its assessors on 23 March and suspended all HGV and trailer tests for three months.

RHA head of licensing and infrastructure policy Tom Cotton said: “Why did the DVSA shut down HGV annual testing at the start of the lockdown when tyre fitters and HGV maintenance teams can carry on working? There are more than 6,400 Irtec examiners who could be part of the solution and I can only think the DVSA is being protectionist.

“It’s a mess and I feel sorry for those ATFs that have seen no income for six weeks while still having to pay bills. The DVSA has failed the industry.”

FTA policy director Elizabeth de Jong said: “The whole testing system needs an overhaul because you’ve got a public sector resource limiting private sector investment.

“Financial secretary Jesse Norman gave a commitment in April to look at delegated testing for Earned Recognition so we will be holding government to that commitment at the very least. It would require primary legislation and there isn’t time for that at the moment, but we believe it will happen in the future.”

25.5.20

By Chris Tindall

A company that failed to ensure two of its workers were sufficiently rested to work and travel safely before they crashed into a parked HGV and died has been fined £450,000.

Welding contractor Renown Consultants was ordered to pay £300,000 costs following a case in which Zac Payne, 20, and Michael Morris, 48, died while travelling in a company van following a night shift. The van veered off the A1, crashing into the parked vehicle

and killing the driver and the passenger in June 2013.

The sentence was passed virtually by judge Godsmark at Nottingham Crown Court after Renown was found guilty on 19 March following a prosecution by the Office of Rail and Road (ORR).

The ORR told the court that Payne – who, like his colleague – was employed on a zero-hours contract, was suffering the effects of fatigue and may have fallen asleep at the wheel or experienced ‘microsleeps’, which increased the

risk of a traffic accident. The court heard that as Payne was only 20 he should not have been driving as the fleet insurance policy stipulated a minimum age of 25.

The judge said Renown’s gravest failing was neglecting to perform a suitable and sufficient risk assessment on the day before the fatalities, which led to the company failing to comply with its own fatigue management procedures, nor did it comply with the working time limits for safety critical work.

TRUCKERS EXEMPT: Drivers bringing freight to the UK will be exempt from the need to quarantine for 14 days, according to business secretary Alok Sharma. Speaking at a Downing Street press conference he said: “I recognise that the quarantining measures will put restrictions on business people being able to travel. One of the exemptions we have talked about is people who are bringing freight in, so freight drivers.” RHA policy director Duncan Buchanan said: “Lorry drivers have proven during lockdown that they have adapted well to using PPE and sanitisers to protect themselves and others and the very nature of their job means that they are self-isolating until they return to their families.”

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Welder fined £450k after driver fatality

Covid-19 takes its toll on logistics industry A haulier in the AET Transport Group of companies has been placed into liquidation following sustained losses compounded by the effect of the coronavirus.

Andrew Trotter, AET Transport MD, told MT its Andover operation closed on 9 May and all staff were made redundant.

He said: “The Andover depot is the only part of AET that has been affected with the downturn in business, partly due to the Covid-19 problem, but it has been lossmaking for some time and has

been supported by Poole.

“With the downturn in Poole, the decision was made to close Andover to protect the Poole site.”

As well as AET Andover, the group includes Dorset Crane Hire, Curvin Transport and Eaton Poole.

The Andover operation held a standard international licence for 32 HGVs and 28 trailers.

Following Andover’s closure, Palletways took over the lease on the depot and it has now reopened. n Manchester construction bulk haulage firm Digway has entered

administration after 50 years in business. The company, which traded as Digway Bulk Haulage, held a standard national O-licence for 15 HGVs, but according to licensing documents this authorisation had been revoked. n Cardiff Container Link, a domestic and container haulier, has also gone into administration. Based in Roath Docks in Cardiff, the company provided container haulage to shipping lines and agents, as well as inland storage and handling and a courier service.

MotorTransport 3

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Osborne owner seeks rapid growth The new owner of Osborne Motor Transport is looking to boost the firm’s turnover by £1m to £4.5m over the next three years, expand its newly liveried fleet, and move to new premises.

The Tyne and Wear-based haulage company also recently leapt from silver to platinum status as a Pallet Track member, which owner Richard Preston said reflected the changes he and his management team had implemented since he bought the business in October last year.

Preston, who also owns Lincolnshire County Couriers, bought Osborne Motor Transport from founder Stan Kidney, who had been at the helm for 42 years.

Preston said: “I wanted to buy a company with a structured management team in place that was experienced and had a stable set of drivers and warehouse workers, and Stan wanted to sell the company to someone who would carry on the legacy. It is a fantastic business and I also liked the fact the company was a member of Pallet Track, which I believe is at the high end of the pallet network spectrum.”

Preston admitted business had been “very quiet” for about two weeks during the pandemic, but turnover is now 75% to 80% back to normal levels.

GO YOUR OWN WAY: The UK government wants to develop ports on the east coast of Britain so the Port of Calais can be bypassed in the event of serious delays arising from the impact of Brexit. As companies warn that they will not be ready for the additional border checks a Canada-style Brexit could result in at the end of this year, government officials are looking at how ports such as Harwich and Felixstowe could handle more ro-ro ferry business. Ministers are concerned about the possibility of industrial action at the Port of Calais and want to be able to bypass France in favour of Belgium and the Netherlands.

Review planned into night-time shift rate as partners call for fair scheme

Tarmac U-turn on pay

By Carol Millett

Tarmac has been forced to suspend the roll-out of its new night shift pay rate just days after its launch, following angry opposition from its partner hauliers.

The move saw nightly incomes slashed by up to 40% and forced Tarmac to bring in non-contracted hauliers on certain sites.

As opposition mounted, Sean McGrae, Tarmac senior manager of national transport, informed partner hauliers that the company

had suspended its plan and was reinstating the previous pay rate while it carries out a “full review” over the next four weeks. “We appreciate that concerns have been raised and as a result have agreed to several calls to discuss with hauliers. We will be looking for some key, focused, fact-based feedback to support a full review of the night payment scheme.”

Tarmac partner hauliers welcomed news of the review. One told MT: “Consulting partner

HEALTHY ORDER: DHL Supply Chain and health food chain Holland & Barrett have launched a pop-up e-commerce fulfillment centre. The operation was set up in just 48 hours, after a surge in online orders as a result of the nationwide lockdown and a shift into categories not normally purchased online. Holland & Barrett’s volumes have doubled on a daily basis during the lockdown, which it said had outstripped the design capacity of the existing e-commerce operation. As well as setting up a ‘fulfill from store’ home delivery option, the DHL facility in Crick, Northamptonshire, has enabled the business to clear an order backlog and process thousands of new orders every day. DHL said the pop-up solution is designed to support retail and consumer businesses adjusting to high street closures and a move to online shopping.

4 MotorTransport

hauliers was the first thing it should have done as this was clearly never going to work. This has been completely mismanaged.”

Another said: “It is hard to believe Tarmac would do this to us in the middle of the coronavirus pandemic when we’re already struggling. Hopefully the review will now give us a fair rate.”

Tarmac insisted that only a “small number” of hauliers had refused to work on the new rates.

Burger anyone?

Burger King restaurants across the country’s motorway network have reopened for takeaway service – but only for HGV drivers initially.

Operator Moto has reopened 27 sites but to ensure safe working practices are established, just drivers are allowed to order food.

Moto chief executive Ken McMeikan said: “We are delighted to support motorway users with the reopening of Burger King and to welcome back furloughed colleagues. This is another step forward to reopening our brands and we look forward to opening more in the coming weeks.”

25.5.20

SUPPORTING THE CRITICAL FRONTLINE ROLE OUR CUSTOMERS PLAY It has always taken a heroic effort to keep our logistics and supply chains open, operating efficiently and at the same time ensuring our customers’ vehicles are always on the road and able to meet the constantly changing demands placed upon them.

Now more than ever before in the face of the coronavirus (COVID-19) crisis we recognise what an essential frontline role our customers and their vehicles are playing in keeping the UK economy moving.

For most of you, working from home simply isn’t an option so we want to let you know that as long as your vehicles and businesses are running – we are here to support you.

With our nationwide network of 68 service points, working day in day out, fully supported by our Mobile24 recovery service and increased stock of spare parts we are ready to help at any time.

We also understand many businesses are unable to operate as normal at the moment.

We have also had to adjust our processes to ensure we continue to support you as effectively as we can.

To protect customers and our employees we are following all government guidance on social distancing practices, comprehensive equipment sterilisation and increased, more frequent deep clean practices in our network.

So we want to thank all of you, no matter what kind or make of vehicle you drive, for all you are doing to keep supermarkets stocked, parcels safely delivered and critical goods and medical supplies moving. All to keep the country running as efficiently as possible.

Take care and stay safe.

Yours sincerely

Thomas Hemmerich Managing Director MAN Truck and Bus UK

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SUPPORTING THE NATION'S SUPERHUMAN EFFORT ON THE ROAD

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09/04/2020 15:40

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MT speaks to seven leading truck operators to establish the real extent of the pandemic park-up

Covid-19: counting the cost To measure the impact of the Covid-19 lockdown on the transport and distribution industry, MT has put together a panel of operators across the UK to give regular feedback on their volume of work and vehicles laid up. We will check in regularly with the panel as the lockdown eases to assess how the industry is fighting back as the UK economy recovers from the expected recession. These seven operators were running a total of 2,921 trucks on 23 March and by 4 May – six weeks into lockdown – 2,301 (79%) of them were still on the road.

Mick Doe, transport operations director, Clipper Logistics

“Clipper Logistics has 13 transport operations in the UK with a higher presence in and around the golden triangle and the south-east. It is a specialist in retail fashion and highvalue goods, working across the whole supply chain including preretail, e-commerce, storage, store replenishment transport solutions, and returns management, but also offers technical services for brown goods.

“With all stores closing over the weekend of 21 March volumes went from the usual seasonal levels to zero, with product stored at various points through the supply chain. The only activity we are completing for our current customer base is to recover product from stores back to the DCs to feed an uplift in e-commerce sales.

“We have around 450 vehicles and 200 trailers and are still operating 75% of our vehicles.”

Lesley O’Brien, partner, Freightlink Europe Freight Train/Freight People

“Freightlink Europe is a UK general haulage transport operator based in Bradford, West Yorkshire and specialising in UK-wide collections and distribution. We predominantly serve the import and export community.

“In the last week of March business was buoyant. Our mixed fleet of 24 vehicles [14 rigids and 10 artics] and 16 trailers was working to capacity. Indeed, we took on 6 MotorTransport

three additional box vehicles to meet customer demand and these were operating seven days per week. Operationally it was one of our best months of the year.

“As the UK entered lockdown, businesses closed and supermarkets replenished stocks, we saw volumes drop considerably. By 4 May, eight of our rigids and two of our articulated vehicles were standing, representing 40% of our fleet.”

Ian Barclay, operations director, Roger Warnes Transport

“RWT is based in Norfolk and covers the whole mainland UK bulk agricultural and construction sectors. In the six weeks from 23 March [the start of lockdown] to 4 May, agricultural volumes dropped by an average of 20% and construction/aggregate dropped by an average of 90%.

“On 23 March, 87 trucks were in operation. Our business has significant seasonal aspects, eg sugar beet from field to processor, and 20 March was the last day of the beet harvest haulage. So it’s normal that the ‘beet fleet’ is stood and refurbished or sold.

“The in-operation fleet did not decrease in line with reduced volumes as there was a significant increase in empty miles, mainly due to the closure of aggregate suppliers. In addition, flour millers were stocked out because they could not obtain supermarketsized packaging and maltsters couldn’t accept bulk barley deliveries because the on-trade licensed sector was locked down or operating an alternative service.

By 4 May we were still running 84% of the fleet.”

Ian Uttley, director, Stagefreight

“Stagefreight provides national coverage from depots in Leeds, Birmingham, Exeter and Marden for live events, theatre and music tours, conferences and exhibitions.

Worked dropped 100% as our industry came to a halt on 23 March. I fear this will be the case for some time. Volumes have increased on general haulage by 25%. On 23 March we were operating 33 trucks and 72 trailers, gearing up for a busy year with an order in for eight more trucks and 16 trailers. Luckily, we managed

HOLDING UP: Turners Group says 82% of its fleet was still in action on 4 May

to cancel the orders for the new ones.

“While 25% of the fleet is working, the rest are on SORN in the yard, while the drivers are furloughed.

“We are confident we will still be here to start again and for now we are concentrating on finding replacement work at a rate worth working for, and looking for longterm general haulage partners.”

Derek Mitchell, MD, Caledonian Logistics

“Our four distribution depots in Scotland cover half of the geographical area there, including offshore islands. We also have a distance division of 20 HGVs covering part and full loads all over the UK. “Our main business sectors are pallet distribution and part and full loads of general goods and food products. We also offer storage services.

“Between 23 March and 4 May, pallet distribution was down 30%.

Loads south are OK but the backloading from south to north did dry up. Storage was down about 10%.

“At the start of lockdown we were operating 60 HGVs, 14 3.5-tonne curtainsiders and 85 trailers. In the six weeks since, we have been operating 90% of the HGVs, 85% of the 3.5-tonners and about 80% of the trailers.”

Paul Day, MD, Turners Group

“We provide nationwide coverage with temperature-controlled containers, tankers and general haulage for transport, and temperature-controlled warehousing and packing services.

“Between 23 March and 4 May, temperature-controlled supermar-

ket distribution of chilled food and produce was up 6%, but frozen food distribution was 30% down, and deliveries to the food service market were down 70%. Overall the sector was down 7%. Container movements were down 27%. In tankers, road fuel deliveries were down 50%, aviation fuel was almost wiped out, cement and GGBS used for concrete manufacture were down 55%, foodgrade products such as sugar and flour were down 11%, and milk was unchanged. General haulage movements were down 16%.

Temperature-controlled warehousing was up 10%. Packing of fresh fruit products was up 6%.

“On 23 March, Turners (Soham) was operating 1,137 trucks, Goldstar 420, Macintyre 218, Jack Richards 330, R&R 38 and Dowse Haulage 50, a group total of 2,193.

By 4 May, the numbers still operating were Turners (Soham) 83.7%, Goldstar 71%, Macintyre 89%, Jack Richards 84%, R&R 76% and Dowse Haulage 96%, an overall group figure of 82%.”

Moreton Cullimore, MD, Cullimore Group

“Cullimore covers all of the UK, but predominantly the Midlands and south-west. Our main business sectors are transport and general haulage, aggregate supply and ready-mixed concrete.

“Between 23 March and 4 May, haulage volumes dropped 75%, aggregate by 95% and ready-mixed concrete by 95%.

“On 23 March we were running 60 trucks and 20 trailers. By 4 May, only 5% to 10% of them were still running.”

25.5.20

THANK YOU FOR DELIVERING THE FLOUR THAT HELPS FEED THE NATION

On behalf of the British Nation, we would like to thank all truck drivers and hauliers for continuing to deliver essential goods the length and breadth of the UK. Colin Spurrier Head of Distribution Whitworth Bros. Ltd Flour millers supplying major food brands

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#TransportTogether #KeepOnTrucking #ThumbsUpForTheTrucker

16/04/2020 11:04

News

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Baxter and EV Cargo boost management teams

Recruitment continues despite Covid lockdown Baxter Freight has appointed Luke Braddow as UK operations manager. He will initially work remotely, along with the rest of the business, ensuring it remains open and operational during the coronavirus lockdown.

Braddow has more than a decade of freight and transport experience and an in-depth knowledge of moving different types of freight around the UK. Head of operations Jari Rasmussen said: “At such a time when many companies may be hesitant in taking on new members of staff, Luke’s experience has helped towards his remote onboarding, and we can see that it can be done well.” n EV Cargo has strengthened its senior management team by appointing three executive vice presidents across its business

development, marketing and communications, and technology functions.

Previously a senior advisor at EV Cargo, Ross Eggleton becomes executive vice-president business development, bringing an extensive range of FMCG, retail and consumer supply chain expertise.

Long-standing Palletforce directors Dave Holland and Dean Hughes have been appointed executive vice-presidents of marketing and communications, and information technology respectively.

The firm said Holland has been driving EV Cargo’s market presence, brand and communications while Hughes is responsible for pioneering many award-winning technology innovations, including harnessing AI for proprietary tools that optimise supply chains.

MAY 29th, 1920

Motor Transport was launched in 1905 as Motor Traction. We look at a story published 100 years ago: A Buyer’s Guide for 1920 A considerable section of the present issue will be devoted to the Motor Traction Buyers’ Guide for 1920, which gives the main mechanical features and dimensions of all types of motor vehicles upon the British market.

If we compare the 1920 guide with our last one, published in July 1913, some very striking differences will be observed.

Perhaps the most noticeable is the large increase in the number of imported petrol vehicles. The 1913 guide contained about 15 machines of foreign manufacture, mainly continental, whereas in this year’s list there are no fewer than 45 different imported makes, the great majority of which are built in the United States.

A matter of regret is the apparent indifference of British manufacturers and importers to the market for motor vans suitable for loads up to 15 cwt. A real demand exists for vehicles of this class, specially designed and constructed for trade purposes, and not merely adapted touring cars, and at present this is met chiefly by the converted Ford or American 1 ton models.

Perhaps the most striking aspect of the war is seen in greatly increased price figures. Owing to the unsettled state of the market, it has not been found possible to obtain the prices of all the vehicles of which other particulars appear; and even those which we are able to give must not be regarded as definite quotations, as all are liable to amendment at short notice.

GREAT MOVE A great move starts with a service.

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8 MotorTransport

25.5.20

Advertorial ‘BLIND-SPOTS TO SUN-SPOTS’ Lens-Tech considers itself to be an expert at bending light - after all, that’s its business.

The Southampton-based firm designs and manufactures wide-angle Fresnel lenses in clear flexible PVC and rigid acrylic to help truck and van drivers see into their vehicle blind spots and keep vulnerable road users safe and visible.

Lens-Tech is a leader in providing a peel-back, self-adhesive, nextgeneration lens that provides an extra 30 degrees of downward view to the driver on the truck’s near-side.

Michael Eastwood, Lens-Tech Business Development Manager, said, “Our big push this year is towards the launch of our new Vantage Point van lens, which I’m confident will help van fleet managers and their HSE increase van safety by combating the dangerous mirror blind-spot behind and outwards Hi Vue Anti-Blind-Spot Fresnel from the near-side panel.”

Truck Lens Augustin-Jean Fresnel, the 18th century French born inventor who pioneered the use of ‘stepped’ (flat) lenses to extend the visibility of lighthouses forms the basis of so many of the incredibly varied lens applications that Lens-Tech is involved with. Modern-day applications for Fresnel lenses abound, from the use of magnifying lenses to increase the apparent size of TV and mobile phone screens, to solar concentrating lenses that are used as an ecologically sound energy source to heat solar ovens and provide hot cooked meals in remote areas of poorer countries in the world, without the need to burn wood or coal.

Working with Sunstore Technologies, a University of Strathclyde ‘spin off’ company, Lens-Tech has led the way in providing solar lens technology through injection moulding, rather than conventional, compression moulding methods.

Lens-Tech CEO Les Haigh said: “Sunstore’s hi-tech solar oven requires a very large and powerful solar magnification lens configured from nine lens parts of 400mm x 400mm, which are injection moulded from three different mould tools that produce nano-sized lens facets that bend and concentrate the sun’s rays into a single focal point”.

He added: “We also design Fresnel reflective mirror lenses that provide up to 100° wide-angle vision.

Giant Solar Concentrating Injection These are fitted to ATM cash machines to protect user Moulded Fresnel Lens Designed for vulnerability, by allowing them to see anyone behind Sunstore’s Solar Oven them during cash withdrawal operations”. Lens-Tech is a specified Fresnel mirror supplier to world-class ATM manufacturer, the National Cash Register (NCR) company.

Demonstrating the depth of the company’s lens expertise Haigh said: “We were recently awarded a new manufacturing and distribution contract

by Highways England for the supply of lenses specifically for fitting to foreign, left hand drive trucks transiting through the UK’s strategic road network”.

Foreign truck drivers were able to obtain LHD lenses at Dover’s international truck-stops when they paid for their UK Road-User Levy.

(The picture over shows Northamptonshire Police’s Safer Road Team besides the National Police Chief’s Council (NPCC) and Highways England’s demonstration truck, fitted with a Hi Vue Fresnel window lens).

Lens-Tech Co Limited www.lens-tech.com

Focus: Freight in the City

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Freight in the City Expo at Alexandra Palace set to highlight best practice urban delivery strategies

Sustaining life in the city Freight in the City is back with a bang this autumn, bringing together influential stakeholders from the urban delivery sector in a key one-day event.

Now in its sixth year at London’s Alexandra Palace, Freight in the City is your chance to hear from top policy-makers and operators on cutting-edge strategies to ensure safe, sustainable goods movements in cities.

An ever-expanding line-up of exhibitors will also be showcasing the latest ultra-clean delivery vehicles and fleet technology, from electric micro-vehicles and vans up to the largest HGVs and doubledeck trailers designed with urban deliveries in mind.

“This year, more than ever before, has proven just how essential the uninterrupted supply of goods into our towns and cities is – it has been vital to keeping key frontline services functioning and consumers stocked up on essential

10 MotorTransport

groceries during the coronavirus pandemic,” said Hayley Pink, events and projects editor at Freight in the City organiser DVV Media International.

“This event will highlight best practice delivery models from leading fleet operators, as well as city policy that not only tackles air pollution and road safety, but also takes into account the needs of businesses to function efficiently.”

Freight in the City takes place on 3 November and is free to attend. It provides a great opportunity to network and speak directly to manufacturers about the latest fleet technology.

Sign up now to register your interest at freightinthecity.com For exhibitor enquiries, contact tim.george@roadtransport.com If you would like speak in the seminar programme on a new urban delivery model or technology, please contact hayley. pink@roadtransport.com.

Seminar programme overview The main seminar stage will be located in the centre of Alexandra Palace’s Great Hall, where three key sessions will take place throughout the day, featuring leading industry experts on the topic of urban logistics. Themes this year include: Talking point: Freight strategy, policy and trials discussed by UK and international city officials Tried and tested: Fleet operators and manufacturers share their insight on adopting new technology and working practices to achieve safe and sustainable city deliveries Emerging delivery trends: Explore the latest disruptive technology, innovative delivery models and start-ups shaking up the industry status quo.

Back again this year after a popular debut in 2019 will be a series of fast-paced Tech talks taking place in a dedicated feature area. These will invite manufacturers of the latest vehicles and equipment coming to market to give visitors a glimpse of their technologies’ potential for urban distribution.

Last year saw a presentation about the new all-electric delivery vehicle poised to hit the market from newcomer Volta Trucks, and another outlining developments in range-extended electric trucks from Tevva Motors. We are excited to see what this year’s presentations reveal.

25.5.20

Viewpoint

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Get ready to be Career Ready S

WOT analysis may be a slightly outdated management tool these days, but it can still be a useful way to summarise received wisdom about a company or industry.

The road transport sector certainly faces several threats – not least the prospect of Steve Hobson the worst recession in living memory – and Editor has its fair share of weaknesses – including Motor historically low profit margins that make it Transport hard to invest adequately in people and low carbon vehicles.

But it also has many strengths and the Covid-19 pandemic could present a huge opportunity as the economy and road transport volumes begin to recover.

Covid-19 has pushed Brexit off the front pages in the past few months, but the fact is the UK has left the EU and in December the transition period ends, deal or no deal.

Finally former prime minister Theresa May’s empty and meaningless phrase ‘Brexit means Brexit’ will actually come true – four and a half years after the referendum the UK will indeed be outside the EU after 40 years.

Despite being hailed as key workers and even heroes during the pandemic, it is unlikely that truck drivers and warehouse

staff will be designated as essential roles that will be given special treatment when it comes to the UK’s post-Brexit immigration policy. Coupled with the delayed roll out of IR35 to the transport and logistics sector, Brexit is likely to see a huge drop in the number of EU workers willing and able to fill warehousing and driving shifts.

A threat yes, but also a massive opportunity. The transport industry has been widely recognised among the general public as an essential service keeping Britain fed and watered in the pandemic, and this may be a once-in-a-lifetime chance to use this higher profile to recruit more young people to join the 2 million people already enjoying a career in logistics.

Right now Career Ready is holding an eight-week virtual Skills Festival to replace the careers fairs and work placements it had planned before the lockdown; 1,600 young people have already signed up to take part and the event is looking for more volunteers to present transport and logistics as a great place to work.

Whether you’re furloughed, working from home or in the office, try and find an hour to go to careerready.org.uk/skillsfestival and get involved.

Start the change to electric vehicles A Barney Goffer UK product manager, Teletrac Navman

dopting electric vehicles is certainly an industry hot topic, with the prime minister recently turning his attention to the transition by pledging to speed up the ban of all polluting vehicles by 2035, or even earlier if a faster transition appears feasible. The phase out now also includes all hybrid vehicles and government investment of around £1.5bn in infrastructure.

But what does this ambitious but necessary phase-out mean for operators?

Undoubtedly, there are challenging times facing the sector, with deep cost uncertainties, a small range of vehicles to choose from, and a limited charging infrastructure all causing concern for fleet managers.

But one thing’s for certain: change takes time. It’s not realistic to expect operators to overhaul their entire fleet at the touch of a button. Before making the move, businesses need to understand how feasible it may or may not be to electrify their fleets.

With many UK businesses now using telematics systems as a fundamental part of their operations, an overlooked opportunity is making use of the detailed GPS data available at their fingertips, which

12 MotorTransport

can be used to identify if their fleets are suitable to switch, as well as help pinpoint which vehicles to replace. This is because telematics data has the ability to show a clear picture of fleet activity and usage, from journey history, including travel distance and the number and location of stop points, to the nature of work undertaken, and the type of vehicle that has been used.

For operators that can’t switch yet, the data can be used to improve emission output by addressing issues that contribute to increased pollution levels, such as navigating around charge zones and congestion.

Ultimately, the transport sector has been powered by internal combustion engines for more than a century, so for the industry to shift to electric vehicles in just over a decade is certainly a tall order. That’s why it’s crucial that education around electric vehicles starts now, so operators can make informed plans and reinvest in their fleet of the future.

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 Sales director Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Caslin 2133 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 Email:customercare@dvvsubs.com Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/year.

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# M TAw a r d s 2 0 2 0

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 17 NOVEMBER 2020 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

01/04/2020 11:35

Clean air zones

A breath of fresh air Clean air zones haven’t just been delayed – their entire rationale has been called into question by the Covid-19 crisis. So what’s the outlook now? Louise Cole reports

T

he concept and execution of clean air zones (CAZs) was both questionable and fragmented before the Covid-19 pandemic changed road traffic patterns. But now, the circumstances of the lockdown and the fallout from it seem set to throw up a host of new data, new arguments and new problems.

Back in February, the Ultra Low Emission Zone (ULEZ) in London was set to mirror the Congestion Charge Zone, with expansion planned in October. Birmingham, Leeds and Bath looked likely to be the next cities to impose CAZs, with Bristol and Sheffield close behind. Manchester was already consulting on its own CAZ, and Oxford had proposed some radical rules. Early pilot cities Derby, Nottingham and Southampton had all pulled back from such schemes, however, preferring other methods of air quality control.

Three months later, the picture has changed dramatically. All CAZs have been deferred until at least the end of this year, with the ULEZ and the LEZ suspended indefinitely. While this is unlikely to last, a combination of low traffic levels, prioritised freight and a wealth of new pollution data should give the industry a chance to present a new case for taking the focus off HGVs.

URBAN FOCUS: Leeds Parcel Company wants to provide a consolidation centre for the city, using its 50-strong Euro-6 fleet to make deliveries

14 MotorTransport

Traffic falls

In early May, several weeks into the lockdown, TfL told MT: “Traffic levels in the first two weeks on the TfL road network were down 47% to 49% on weekdays and 60% at the weekend. Traffic levels have increased steadily and average traffic levels on a weekday are [now] down 41% and at the weekend down 54%.

“Daily average NO2 has reduced by around 40% at roadside sites in central London, and 20% elsewhere.

The NO2 roadside increment [the proportion directly attributable to traffic] has reduced by around 52% in central London and 25% in the rest of London.”

That means the reduction in traffic is slightly lower than the reduction in NO2, despite the fact that freight vehicle traffic will not have decreased as much as other traffic, particularly those serving the commuter and tourist sectors such as private hire vehicles.

Mohammad Mesgarpour, head of data science and research at Microlise, says its telematics data, based on mileage captured on 11 February and 24 March, suggests a 8% drop in freight activity overall (with no reduction in grocery deliveries to store or home) and a 9.4% drop in London.

These figures don’t accord with the supposed 240,000 HGVs that were parked up during the lockdown, but possibly give an indicative reading of the top end of the haulage market.

Natalie Chapman, head of urban policy at the FTA, says: “The reduction in NO2 has provided a justification for the suspension of the ULEZ extension and current enforcement. Hopefully the industry will benefit from proper analysis of this data so that we can strengthen the argument that HGVs are not disproportionate contributors to pollution.”

The RHA and FTA both argue that vehicles should be judged not just by the level of emissions but by their societal and economic contribution. It’s possible this argument may carry more weight while the general public still shows heightened goodwill towards key workers in logistics.

The data could also shed new light on the role of congestion in raising the level of airborne pollutants, and the beneficial effects of more direct routeing, given that the London Lorry Control Scheme has also been suspended.

The suspension of CAZs may not last as long as expected for public health reasons. Although such local regulation may seem cumbersome and irrelevant compared to the pressure of the pandemic, the two are linked. At the time of writing Covid-19, had cost the UK over 32,000 lives, more than half of them in Greater London. Air pollution already kills 40,000 people a year nationally, and those with long-term exposure to poor urban air are much more vulnerable to respiratory illnesses such as Covid-19.

25.5.20

motortransport.co.uk

In April, the government asked scientists to share initial evidence or analysis on the changes in air pollution and its possible impacts, including whether any insights could be gained into the impact of air quality on viral infection. So the two problems may become inseparably entwined, both in terms of altering how we live and work and the emphasis on respiratory protection.

But CAZs do work, according to Andrea Lee, clean air campaigns manager at ClientEarth, the campaign group that took the UK government to the European courts to force it to take action over poor air quality. Lee says that in the three months before lockdown, the ULEZ cut NO2 by 37%. However, while diesel vehicles are the key contributors, she adds: “The long-term solution is clear: we need fewer and cleaner vehicles on our roads.”

A Greater London Authority analysis of the ULEZ before the lockdown showed a 10% cut in traffic and 71% fewer non-compliant vehicles.

“The pool of vehicles circulating in London since the ULEZ has been getting cleaner. This also confirms that the ULEZ is tackling emissions from all sources, as it should,” Lee says.

However, the RHA argues that in 2017, buses and HGVs only accounted for 5% of NO2 emissions, a figure which has steadily fallen with the take-up of Euro-6, which it says accounted for 52% of the vehicle parc in early 2020. Euro-6 vehicles produce very low levels of hydrocarbons with an 80% fall in NO2 over Euro-5s.

With more than half the UK fleet already Euro-6, and a decent supply of used vehicles available, is there really any issue?

According to Chris Ashley, RHA head of policy – environment and regulation, there is. He says an already insufficient supply of Euro-6 HGVs was exacerbated by the halt in production during lockdown and that government plans do not take this into account. Furthermore, the 120,000 Euro-5 vehicles still in use are likely to become ‘stranded assets’, and the industry could lose up to £1.2bn as their value plummets, according to the RHA. Some commentators have called for a diesel scrappage scheme for older trucks, but it’s unlikely that an overstretched Treasury will oblige.

Meanwhile most CAZs will not affect non-compliant cars; and no council is allowed to target cars without first working through the framework’s vehicle hierarchy, starting with buses, HGVs, taxis and private hire. This is despite the earliest studies making clear that diesel 25.5.20

cars were the key contributors to particulate and NO2 emissions. A 2010 Transport & Environment study stated baldly: “Urban air in much of Europe is not fit to breathe, and vehicles, especially diesel cars, are the principal cause.”

Yet it was only ClientEarth’s successful legal challenge which broadened the CAZ criteria to non-compliant private vehicles at all. Lee admits: “Political will to reduce pollution from private cars in particular has been lacking.”

CLEANING UP: CitySprint operates what it believes to be the largest courier cycle fleet in London, along with electric vans, a hydrogen van and 35 cargo bikes

Inconsistent policy

There are other practical issues with CAZs – such as the lack of a consistent national policy. “The government chose to pass the buck, directing 61 English councils to identify local solutions. [This] has led to widespread delays and weak proposals as many local authorities lack the resources, capacity and leadership to get to grips with the problem,” says Lee. “A national approach could have been more efficient and provided more consistency.”

She says the government needs to give more support to councils to ensure fast, ambitious measures are implemented, and should use national policy levers to complement CAZs including facilitating the move to cleaner vehicles.

The local authorities that have pulled away from CAZ schemes, such as Southampton, Derby and Nottingham, have found they can meet the statutory limits through other means. Derby adopted traffic calming measures.

And Nottingham chose to move its bus, council HGV and taxi fleets to low emission models, which not only promised the needed reduction in emissions but did so over a much wider area than the CAZ. In the short term, however, both congestion and air quality are likely to get worse in early summer. The government is urging people back to work but without using public transport. Local authority powers to use traffic regulation orders to reserve road space for walkers and cyclists may yet put pressure on traffic flows. It’s possible that a long term shift to home working may mitigate some of the resulting congestion.

Meanwhile the fall in diesel prices and the economic recession will damage the already tenuous business case for alternative-fuelled vehicles.

In a recent Covid-19 update briefing, foreign secretary Dominic Raab said: “There’s not a silver bullet here, it’s about putting all the different bits of the jigsaw ➜ 16 MotorTransport 15

Clean air zones

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

Direct Vision Standard Are you ready?

0

together and having a strategic, holistic approach." He wasn’t talking about air quality – but he could well have been.

Fleet responses

Some hauliers are determined to make the best of the clean air zones in their area. Leeds Parcel Company, which has 50,000sq ft of warehousing near the Milshaw Park area just outside the planned Leeds CAZ, intends to set itself up as a consolidation centre for the city, using its own 50-strong Euro-6 fleet to make deliveries.

“Given the location of our warehousing and our proximity to motorway connections, it made sense to us,” says MD Dave Wilby. “We were going to approach the council to see if we could work in partnership with the city, but the Covid-19 situation has put it all on the back burner.”

Same-day delivery specialist CitySprint says that sustainability is a big issue with its customers. Darren Taylor, business solutions director, says: “Businesses support measures like the ULEZ and CAZs. Many say they will be positive. But our research has also told us that SMEs want more support and guidance from government to help them adapt to new green policies. This will be especially important as different regions and areas adopt slightly different policies.”

CitySprint says it has invested in a sustainable fleet including “the largest courier cycle fleet in London, electric vans, a hydrogen van and 35 cargo bikes, which are undertaking over 4,000 jobs monthly and clocking delivery times up to 50% faster than small vans in urban areas.”

It also encourages customers to pay an optional carbonoffset charge for jobs that use a standard vehicle, with the money being donated to sustainable development projects.

CAZs in themselves will not be sufficient, Taylor argues. “More needs to be done to support the wider adoption of green vehicles. Currently the UK’s electric vehicle charging infrastructure is insufficient for commercial needs. Without more government support, businesses will struggle to bear the cost alone.” ■

PAYMENT PORTAL PROBLEM Aside from the policy aspects of CAZs, one practical issue which could be a burden to industry is the fragmented payment system.

Although the government created a payment portal, it lacks auto-pay capabilities. So fleets need to set up an account and then manually enter the vehicles in a given city on a given date – and then go through the process again for the next city.

Chapman at the FTA says this is unnecessarily burdensome, given that there are sufficient ANPR-enabled cameras to ensure enforcement, yet they are not linked to a central fees systems.

This will be particularly problematic as the vehicles affected in each city will not necessarily be consistent.

16 MotorTransport

How Brigade can help Brigade Electronics can advise transport operators on the requirements of the Direct Vision Standard and how to achieve a permit to enter London if your vehicle falls short of the minimum star rating. If you are unsure what your vehicle’s DVS star rating is, we offer a free service to obtain that information for you.

Brigade Electronics has a range of products to comply with the DVS requirements For comprehensive information about the requirements of the Direct Vision Standard and how we can help you comply; visit our website or give us a call.

brigade-electronics.com

01322 420300 25.5.20

We are ensuring the industry has what it needs to survive During this unprecedented coronavirus crisis Motor Transport and motortransport.co.uk have been working flat out to keep the road transport industry informed and updated with the very latest news and views. Our highly experienced team of journalists has been on top of developments as they have happened, with exclusive reports and interviews to ensure our essential logistics industry has all the information it needs to survive.

As well as increasing the volume of daily news carried on motortransport.co.uk, we are still printing and distributing the fortnightly magazine that provides readers with a round up of the most important news, plus all the in-depth features operators need to keep their businesses on the road.

While there has been no reported disruption to our usual distribution channels, if any reader is having difficulty obtaining their copy of MT please email us on subscriberemails@dvvmediainternational.com to request a full digital version of the magazine.

Since the coronavirus crisis started, we have seen record traffic on motortransport.co.uk, with no sign of this trend coming to an end. We are also reaching a wider audience than before, with the website setting new records for unique users.

While some of our popular clean air events have been postponed and are awaiting new dates, the 2020 Motor Transport Awards have been moved from their usual July slot to 17 November at the usual prestigious venue, the Grosvenor House Hotel. The Freight in the City Expo is also going ahead at Alexandra Palace on 3 November.

As some of our face-to-face events have had to be postponed, we have expanded our portfolio of free webinars, with online updates on the relaxation of drivers’ hours rules and the impending Direct Vision Standard among the hot topics to be covered in forthcoming sessions.

Motor Transport thanks and pays tribute to everyone working in the road transport industry for going the extra mile in this extremely difficult period. Without you, the country would not be getting all the food, medical supplies and other essentials that we depend on.

Steve Hobson Editor Motor Transport Follow us on:

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Fleet optimisation

Proving the case

FreightShareLab set out to prove that sophisticated fleet optimisation and collaboration between fleets could produce cost savings and environmental improvements: did it succeed?

R

oad transport: a cleaner future. This is the journey of FreightShareLab (FSL). Its 30-month mission: to unlock transport efficiency, to prove the case for sophisticated fleet optimisation, to think the unthinkable!

While Brexit, the December election and the impact of coronavirus have been front and centre for the past year, the partners in FSL have worked methodically to prove the road transport industry’s capability to achieve an average reduction in greenhouse gas emissions of 20%. They have been looking at how this drop can be attained using sophisticated fleet optimisation involving collaboration between multiple operators.

Nine months ago (MT 2 September 2019), Professor David Corne of Heriot-Watt University defined the holy grail of fleet optimisation thus: “Joint optimisation of vehicles and depots, involving two or more fleets working closely together, sharing a large portion of their joint resources to optimise the service of their current delivery tasks. The notion is that we treat the combined resources as if they were those of a single fleet operator, so that any vehicle in the combined fleet can serve any of the required deliveries, while the goods associated with both fleets are present at each of the depots. Essentially, this means that each fleet’s depots serve as a consolidation centre for the combined fleet’s goods, while the schedule optimisation task is able to ignore the ‘original’ affiliation of each resource.”

This sort of asset sharing can deliver greenhouse gas emission reductions of between 7% and 30%, and an average of 20%, according to the World Business Council for Sustainable Development report from 2016, co-authored by Corne.

Inspired by this report and the Council’s work, FSL was formed with the aim of demonstrating how strategic data- and asset-sharing between multiple road/rail carriers and shippers could reduce empty running and underutilisation of freight vehicles.

With some funding from Innovate UK, the FSL project initially comprised four components: ■ a digital platform to aggregate loads and vehicles; ■ algorithms to calculate the most efficient way to move goods between points of collection and delivery; ■ recruitment of shippers, consignors and carriers willing to explore how collaboration can impact on operational efficiency; ■ the real world demonstration of how the digital platform can be applied to unlock transport efficiency.

FSL partners are leaders in the field of optimisation,

20 MotorTransport

algorithms, fleet efficiency and market knowledge: Trakm8, Heriot-Watt University, Connected Places Catapult and MT owner DVV Media International respectively.

The project reached completion last month and MT can now exclusively reveal the results.

What did FSL do?

For FSL to prove its case, the algorithms – that apply sophisticated routeing and scheduling to multiple companies’ assets as if they were a single fleet – had to be written and tested. This was Corne’s task.

He explains: “I worked on the algorithms over a sixmonth period; that included a couple of weeks solid to design the algorithm – getting it to work in a commercial and robust fashion is what takes the time. It was 10% writing the initial code and 90% fixing the problems [that arose in testing].”

The algorithms sit behind an online portal developed

by Trakm8 and Corne. The portal requires operators to enter their delivery data in a CSV file. That file has to detail a reasonable number of factors, including: ■ depot location(s); ■ each vehicle’s volume and weight capacities; ■ the hours in which those vehicles are available to work; ■ each delivery location; ■ the volume and weight of each distinct delivery/package; ■ the delivery windows.

This level of collaboration would require a business model to frame it in the real world. This task fell to Connected Places Catapult, as its transport economist Carmen Fuster-Rodriguez explains: “First, the business model ensures that both the original contract holder and those companies identified by the FSL portal to fulfil the contract retain their profit margins. Second, they also share the difference between the contract holder’s operating costs and the price charged by the fulfilment provider. The platform is therefore able to reward both 25.5.20

motortransport.co.uk

Shutterstock

Two hauliers, one fleet, less CO2 CASE STUDY 1: 2% TO 10% COST SAVINGS

The first test of FSL was a supplier to the construction industry; let’s call them ‘fleet A’. They have two main sites: the East Midlands, servicing as far north as Leeds, Brighton to the south, Colchester to the east, and Bridgwater to the west; and the North West, servicing as far north as Newcastle, Southampton to the south, Cambridge to the east, and Yeovil to the west.

For each of fleet A’s locations, the FSL portal simulates a nearby ‘fleet B’ with a realistic depot location and a set of jobs with a realistic geographic spread.

The primary sharing method begins with a ‘morning transfer’ shuttling process, where a fleet A vehicle takes some of our operator’s jobs to fleet B’s depot and returns with some of fleet B’s jobs to drop them at fleet A’s depot.

The selected jobs are those that are more conveniently delivered from the other fleet’s depot.

The findings from the FSL portal simulations are compelling. First, the results for the East Midlands: ■ Fleet A does most of fleet B’s jobs (23 of 26) in the South and Midlands, while fleet B does four of fleet A’s jobs in the East and North East. The morning transfer is accomplished by 11 fleet A trucks and 12 fleet B trucks. The result is a 2.69% saving of the combined fleets’ costs and a 3.5% reduction in mileage.

■ A more balanced schedule sees fleet B doing 17 of fleet A’s 26 jobs, clustered in the central and southern regions, while fleet A handles 10 of fleet B’s 20 jobs. The morning transfer is accomplished by nine fleet A trucks and eight fleet B trucks. The result is a 2.46% saving of the combined fleets’ costs and a 3.8% reduction in mileage.

■ With fleet B’s depot being slightly north of fleet A’s, fleet B takes on six of fleet A’s jobs, while fleet 25.5.20

A handles 21 of fleet B’s jobs in the central and southern regions. The morning transfer is accomplished by 10 fleet A trucks and 11 fleet B trucks. The result is a 12.6% saving of the combined fleets’ costs and a 7.2% reduction in mileage.

Second, the simulations and results for the North West: ■ Fleet B’s depot is slightly north of fleet A’s and better placed to handle the latter’s Tyneside jobs, while fleet B has the majority of its jobs in the London area, which are more conveniently handled by fleet A. Thus fleet B takes on three fleet A jobs, while fleet A handles 19 of fleet B’s jobs. The morning transfer involves nine fleet A trucks and 10 fleet B trucks. The result is a 1.5% saving of the combined fleets’ costs and a 2.5% reduction in mileage.

■ Fleet B’s depot is now south-west of fleet A’s, and better placed to handle the latter’s jobs in the Welsh border and Merseyside region, and takes on 14 of fleet A’s jobs in all. Meanwhile fleet A handles five of fleet B’s jobs, including a clutch in the East Anglia area. The morning transfer involves seven fleet A trucks and seven fleet B trucks. The result is a 4.4% saving of the combined fleets’ costs and a 5.8% reduction in mileage.

■ Fleet B’s depot is in the same place as in the scenario above, but with a different distribution of jobs. It is better placed than fleet A’s depot to handle the cluster of the latter’s jobs in the Welsh border and Merseyside regions, and takes on 14 of those jobs in all. Meanwhile fleet A handles seven of fleet B’s jobs, including a clutch in the Leeds area. The morning transfer involves seven fleet A trucks and seven fleet B trucks. The result is a 10.5% saving of the combined fleets’ costs and a 12% reduction in mileage.

TESTING THEORIES: Professor David Corne, director of enterprise, impact and innovation at Heriot-Watt University

➜ 22 MotorTransport 21

Fleet optimisation

COLLABORATIVE SUCCESS: Sarah Bee, projects director at Trakm8

the operators that submit their contracts to the portal, and those that the portal’s algorithm determines are best placed to fulfil the contract.”

She explains further: “The portal connects fleet operators with a wide pool of asset owners and operators; the larger the pool, the more chance there is of finding a better solution. In theory, participating companies can only gain financially from this model.

“Furthermore, a wide geographic coverage by members’ assets increases the likelihood of capacity being available and increases the chances of fulfilling more contracts in any given period. However, the algorithm will only reallocate jobs where both price and emissions are lower than those possible when the job is performed by the contract holder. If lower costs and emissions cannot be found, the contract holder would then conduct business as normal.”

The foundations for success were set. However, the first obstacle now revealed itself. The FSL partners discussed real world trials with a number of fleet operators and, while those operators were keen to explore and enjoy the benefits of FSL’s vision of collaboration, they were unable to commit for a number of reasons.

A common issue among many of those operators was the input and sharing of their data on a third-party platform: an impasse with both legal and policy foundations for which there was no way round.

Another barrier was of a similarly sensitive nature and equally difficult to overcome: for two or more freight operators to collaborate as FSL intended, it would necessitate the involvement of an independent third party, an arbiter, to oversee and maintain the collaboration. This mediator would be particularly essential with a view to competition law, commercial and contractual confidentialities, consignors’ delivery SLAs and dispute resolution.

It was deemed inappropriate for any of the project partners to take on this risk-centric role.

With these apparently insurmountable barriers in

CASE STUDY 2: 2% TO 34% COST SAVINGS This case study is very different to the first. It involves a medium-sized 3PL that is well known to MT readers; again, let’s call them fleet A. Rather than a distribution of customer locations throughout several regions, in this case all of fleet A’s jobs are clustered together at some distance from their depot. If this was treated as a standard test case, then the fleet B depot would be sited near fleet A’s depot, but their customers would generally be distant from the latter’s customers. To provide appropriate outcomes, it was therefore necessary to create a fleet B whose customers were also clustered in a similar area to fleet A’s, with their depot somewhere between fleet A’s depot and the customer area. Essentially, this means sharing with a fleet in a broadly similar region that faces a comparable conundrum in terms of hard-to-service customers.

As a result, the ‘sharing’ element is heavily biased towards fleet B doing all of the work. Effectively, after some movements in the morning where some higher-capacity vehicles of each fleet transfer all of fleet A’s jobs to fleet B’s depot, fleet B then acts effectively as a subcontractor for all of fleet A’s jobs, doing all of these together with its own jobs for the day.

Three scenarios are explored, each based on a different location for the fleet B depot. In each case there are three different simulated distributions of fleet B jobs.

In the first scenario, where fleet B’s depot is near to fleet A’s, the three simulations produced between 2.3% and 5% saving of the combined fleets’ costs and mileage reductions of between 18.7% and 21.3%.

In the second scenario, where fleet B’s depot is halfway between fleet A’s depot and the customer cluster, the three simulations produced between 13.5% and 19.4% saving of the combined fleets’ costs and mileage reductions of between 31.7% and 39.9%.

In the final scenario, with fleet B’s depot in the same area as the customer cluster, the three simulations produced between 28.3% and 33.8% saving of the combined fleets’ costs and mileage reductions of between 59.2% and 62.9%.

Thus, the closer fleet B’s depot is to the customer cluster, the better the gains for both fleets. This is because, as it gets closer to the customer locations, fleet B becomes more akin to a last mile distribution centre, and is consequently more efficient with reduced empty return mileage.

22 MotorTransport

This concept is illustrated by the figures THE FREIGHTSHARE LABbelow: CONCEPT 40% full

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We will optimise route for several fleets together, including sharing opportunities as part of the

optimisation process. The four main steps of the process are outlined below: place, it was necessary for the project to be rescoped. It was decided that the portal should act as a proof of concept: Fleets provide their data to the platform it would become an online simulation tool into which an operator could feed their historic data and see what knows each fleets’ sharing rules and arrangements the results wouldPlatform have been if they had collaborated with other operators.

Platform jointly optimizes the fleets, optimizing route and sharing opportunities together Thus Corne and Trakm8 reworked the portal. The former brings us up to date: “The portal matches an Platform provides the results: a route for each fleet, indicating sharing opportunities used operator’s fleet with a simulated but realistic fleet nearby (with randomised but realistic jobs), it then runs the numbers, and shows the potential improvements if the operator and the simulated operator collaborated.

“Working with industry standard cost assumptions (drawn from well-known cost tables, for example), the portal works out what the operators’ costs would be if they had done all the jobs themselves and what the costs (and mileage) would be if they collaborated.”

With the project successfully rescoped, three forwardlooking (but understandably anonymous) fleet operators decided to take part. Once again, it was not plain sailing for the FSL partners.

For a start, Corne had to extract the operators’ data as provided and re-map it into CSV files for input to the portal. That task took longer than the portal did to run the simulation and produce the results, Corne wryly notes.

A review of the data also suggests that the operators supplied their most challenging deliveries, or “the awkward jobs that are a bugbear of day-to-day operations,” according to Trakm8 projects director Sarah Bee. Despite the three resulting case studies involving profiles outside FSL’s sweet spot (see panels), cost and mileage savings and the resulting profit gains were clearly demonstrated. Cost savings varied from as little as 0.2% to as much as 34%.

Bee notes: “Operators certainly want the efficiency and fuel savings, and the improvements in driver and vehicle utilisation; those benefits are clearly demonstrated by the project. The greater the volume of deliveries, the greater the gains, but we’ve also demonstrated that collaboration can work for multiple smaller fleets with lower delivery volumes.”

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The key lessons

What have the FSL partners learned?

It almost goes without saying that they are pleased that the theories and research that sparked the project have been proven to be correct: the successful case stud25.5.20

motortransport.co.uk

Our third case study features a nationwide operator with a number of depots around Manchester. Once again, this is fleet A. This was another awkward job: a low volume of vehicles carrying out a low volume of jobs – a combination that limits the efficiency improvements and cost savings that the FSL model can generate.

However, the simulation featured fleet B with a similarly low volume of deliveries carried out by a small number of vehicles from locations near to fleet A’s depots.

Despite this being an awkward case study, benefits were generated: the greatest cost savings of 3.6% and 5.2% were generated from those of fleet A’s depots where fleet A did the majority of the mileage, while cost savings were marginal (0.2% to 1%) for the depot where fleet B did the majority of the mileage.

Mileage reductions varied between 9.9% and 17.6%.

ies clearly provide the evidence that optimised collaboration is effective.

Bee at Trakm8 says: “It’s been a really successful project and given us lots of useful insights into the challenges and opportunities fleets face when trying to collaborate.

“Lots of fleets do want to collaborate, but there’s a question of trust. For example, a number of operators try freight exchanges for six months to build relationships with other operators, and then withdraw from the exchange and continue those relationships under their own terms.”

Indeed, a survey of more than 100 operators conducted

by MT, as part of this project, found that nearly threequarters thought their business could benefit from collaboration in some way, and that more than a third had been involved in collaborative projects in the past.

Half of the operators who had collaborated in the past enjoyed benefits that met or exceeded their expectations.

However, the survey also confirmed Bee’s point about trust: a lack of trust and common goals was the second most common barrier to collaboration cited by more than a third of those operators that had never collaborated.

The most common barrier those operators cited was a lack of awareness of the benefits of collaboration.

[Perhaps this article will help to combat that – Ed.] Of those surveyed, nearly two-thirds were willing to participate in future FSL projects. Predictably there is some devil in the detail: while 45% would be willing to consider sharing a part of their existing business, another 41% said they would only commit to sharing their excess capacity.

One of the case study operators noted other concerns, namely that their contracts with customers preclude subcontracting, while some other customers insist on deliveries being made by a correctly liveried vehicle – both are clear barriers to optimised collaboration as envisioned and proven by FSL. Indeed, the proof provided by FSL should be useful for operators who want to explore the opportunities for collaboration. Corne notes: “Through our meetings with operators, we know that now and then they are talking about collaborating, but they’re unsure of what the improvements might be. Our portal allows them to input their data and get an idea of the improvements that can be made.”

What next?

For optimised collaboration to gain traction with operators, the barriers will need to be overcome.

“For collaboration to succeed, there needs to be a big cultural change within the industry to persuade fleets to work in this way. Some operators we spoke to said that 25.5.20

if collaboration was legislated, they would have to do it.

Regulation could drive them,” says Bee at Trakm8.

Indeed, Andy Salter, MD at FSL partner DVV Media International, asserts that for collaboration to succeed, a local or national legislative push would be beneficial.

Such legislation could also set out the arbiter role and the protocols to be followed.

While FSL’s project has focused on the UK, there has already been interest from two major European cities, one of them led by a freight client.

Given a supportive legislative framework, it is easy to imagine the traction that collaboration could gain if clients drove the initiative.

Notwithstanding their delayed arrival due to the Covid19 pandemic, Clean Air Zones will act as a driver for the uptake of all forms of collaboration.

And some of the work conducted by FSL is already running live: not only did Corne write the algorithms for FSL, but he also concurrently wrote the algorithms that power Trakm8’s new Insight Optimisation tool. He confirms that there are FSL elements in Insight’s algorithms.

This tool, available for free trial during the pandemic, uses intuitive fleet optimisation and route planning, supported by intelligent mapping, to offer up to a 33% improvement in fleet productivity and cut fuel bills by up to 20%.

As for FSL v2.0, the combination of Brexit and Covid19 means it won’t follow swiftly, but certainly the partners are keen to push forward. Fuster-Rodriguez at Connected Places Transport speaks for all the project partners when she notes “in future trials, we’ll need to get more involvement from SMEs”.

Speaking on behalf of all the partners, Salter at DVV says: “We’d like to thank all the operators who got involved in this project, and Innovate UK for part-funding it. The learning around collaboration has been developed as a result of the project and the FSL virtual portal will remain live for fleets to try out what might be possible through sharing. I have no doubt this topic won’t go away and we will continue to explore ways to facilitate anything that will drive improved transport efficiency.” ■

Adrian Chandler / Shutterstock

CASE STUDY 3: 0.2% TO 5.2% SAVINGS

MotorTransport 23

MT Awards 2020 shortlists Team of the Year MT profiles the shortlists for this year’s awards Abbey Logistics and British Sugar

In 2016, Abbey Logistics took over the British Sugar transport contract, a large scale operation that sees 400,000 tonnes of bulk sugar delivered a year and 300 UK deliveries each week.

The joint Abbey Logistics and British Sugar team has developed a fully integrated, cost-effective and secure business alliance, which according to the entry “practises, shares and promotes teamwork in every aspect of the contract”. The results included 99% on-time delivery in 2018/19, transport cost per tonne reduced by 13% generating a cost saving of nearly £3m, and an 80% reduction in personal injuries.

Our judges were impressed with the seamless integration of the joint team from Abbey and British Sugar. “Abbey Logistics is completely embedded into the team at British Sugar,” said one. “Abbey Logistics and British Sugar are a great example of mutually beneficial and successful open-book collaboration.”

ArrowXL

In April 2017, Arrow XL’s hub on the Blackpole Trading Estate in Worcester was destroyed in a fire. The company decided to rebuild on the same site and in October 2019, thanks to the work of a team set up to manage the project, the operation made a smooth transition to its new facility.

The new hub is a 15m high, 185,000sq ft warehouse with a 55,000sq ft mezzanine, providing 14,000 pallet spaces for warehousing and fulfilment customers. Handling over 55,000 items each week, it was vital that the facility came online with no disruption for customers.

The project was delivered on time, on budget, and customers were unaware of the transition. Judges said the team from all disciplines “showed a united front during this critical transition” and used “re-iterative feedback workshops” to achieve all its objectives.

DPD UK

DPD’s 14,000 people deliver 263 million parcels a year for over 7,500 customers, and the peak period from Black Friday to Christmas Eve is the busiest period of the year. DPD recognised it was crucial in 2019 to give its customers “truly amazing service” and so launched its Intelligent Operations Centre.

The centre was staffed 24/7 by an 18-strong team of analysts and hub operations personnel for six weeks up to Christmas Eve to deliver

24 MotorTransport

Sponsored by

the best possible peak for customers. In previous peaks, different teams across DPD had struggled to make important decisions as they lacked a full picture of the operation, and the new central team gave a holistic view of the network to employ the right resources in the right places at the right time.

Our judges were impressed that despite its market leadership, DPD is “never complacent” and “continues to strive to improve its offering to both client and end consumer”.

Fortec Distribution Network

Project Transform was launched by Fortec's operations team to substantially improve operations and deliver a better service for customers after a turbulent year of changes and challenges in 2018.

The project’s goals included a £3m transformation of the Watford Gap hub, introducing a new training matrix, a site-wide clean-up and new processes around safety, quality, productivity and communications.

The 10 priority KPIs included improving hub turnaround by 10% , raising scanning accuracy to 100%, and cutting pallet damages by 45%.

Led by general manager, operations Stuart White, this 12-month project came in on time and under budget, over-achieving on its KPIs thanks to team buy-in, cross-departmental collaboration and support from network members.

One of our judges said the project had “created a stronger Fortec team ethos” and was a “great example of a business-wide team working to substantially improve performance at all levels”.

“If I was the MD I would be very proud of this team”, added another.

Palletforce

The Palletforce ‘SuperHub’ operations team was tasked with delivering a project to handle 10% more freight volume in line with the network’s growth targets during 2019, while reducing turnaround times and maintaining sector-leading service excellence in terms of safety, productivity and performance.

Working with all 120 member companies and various Palletforce divisions, the team successfully delivered the project and exceeded target on a range of operational KPIs including handling 4 million pallets in 2019 – 10% up on 2018 – while seeing the number of trailers loaded by 2am increase by 24% to 164. It also delivered significant safety, service, quality, performance and commercial benefits to the entire membership and members’ customers.

Our judges liked the “productivity improvements” and said they could only have been achieved “in close collaboration with both employees and partner members”.

25.5.20

THE PREFERRED PARTNER HIAB IS THE WORLD’S LEADING PROVIDER OF ON-ROAD LOAD HANDLING EQUIPMENT

Hiab MT awards night advert v1B.indd 1

01/04/2019 09:33

MT Awards 2020 shortlists Apprenticeship of the Year Sponsored by CM Downton

Downton’s apprenticeship programmes, covering driving, administration and mechanic roles, are a key strand of the company’s recruitment strategy.

They’re particularly focused on apprentices benefiting from the support of more experienced colleagues to help develop their vocational skills.

The company has designed a programme that delivers a return as well as creating opportunities for young and female drivers and those from more diverse backgrounds. After gaining their licence, apprentices partner up with an experienced mentor to learn skills on the road and other areas specific to Downton customers, sites and operations; in the firm’s words, everyone within the Downton family has a responsibility to support the apprentices in any way they can.

There’s also significant focus on customer care and improving the public image of HGV drivers, and its pass and retention rate are an impressive 100%.

DAF Trucks

The rapid increase in complexity of modern trucks and the technology needed to keep them running means a need for highly trained individuals.

DAF recognises that apprenticeships are key to succession planning, providing a sustainable workforce and ensuring that the future of the industry remains secure.

The DAF apprenticeship programme comprises heavy vehicle, parts or commercial skills apprenticeships, with each offering work in the automotive industry to guarantee job security. It covers all college tuition fees, travel, accommodation, meal and uniform costs while attending the apprentice college, and it invests in the supply of diagnostic equipment, components and vehicles to ensure the latest technology and DAF-specific systems are available to its apprentices.

The judges were impressed with the examples of apprentices progressing into senior roles and the achievement rates, which are 20% higher than the national average.

Motus Commercials

Apprentices at DAF Trucks’ dealer Motus Commercials are recognised as one of its best assets. The company offers a three-year Level 3 heavy vehicle maintenance and repair apprenticeship, which includes residential blocks at the City of

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Bristol College, backed up with regular site visits from a skills coach.

Learning is consolidated with a fourth ‘improver year’, in which newly qualified technicians can get ongoing support with progress reviews.

Judges loved its ongoing engagement bonus scheme, mentor support, regional buddies and apprentice of the year award. There was also an impressive emphasis on the importance of communicating and active engagement with local schools to draw in the next generation and ignite a passion for HGVs. The judges also commended the return on investment of more than £45,000 per apprentice on its three-year programme.

Tesco

For Tesco, becoming an pprentice is as much about attitude as it is about being eligible.It wants to see a passion for learning, an interest in distribution and a willingness to learn at every opportunity.

In return, its Level 2 HGV apprenticeship promises to give candidates the knowledge, skills and behaviours required to develop an in-depth understanding of driving HGVs. Developed in conjunction with South Essex College, it provides apprentices in distribution, customer fulfilment centres and stores with an opportunity to gain a professional qualification and become a professional driver for Tesco.

The judges were particularly impressed with the inclusion of a BTEC qualification in the carriage and delivery of goods by road and the arrangement of open days for potential trainees, who get to visit a distribution centre and talk to trainers, former apprentices, managers and full-time drivers.

XPO Logistics UK

XPO has fostered a culture of optimal performance with its bespoke apprenticeship programmes. It develops talent from within and by maximising the use of the apprenticeship levy has provided development opportunities for colleagues at all levels. XPO offers more than 30 different programmes and has over 600 apprentices in its UK operation. Loyalty is high, with 92.5% seeing a long-term future at XPO and retention rates that are more than 85%.

By offering a structured career path its apprenticeship scheme has created an influx of younger, multi-skilled workers, providing a pipeline of talent for the future. The judges commended XPO’s 60% utilisation of the levy – well above the UK and industry average – and the clear, positive impact in return on investment its apprenticeship schemes are having on the business.

25.5.20

It’s time to trust your engine oil

Total Lubricants, as an integral part of the UK Motor Transport industry are proud to be associated with this presitigious award.

Apprenticeships play a vital part in recruiting and retaining the best talent, so this award is to recognise the most successful schemes in the last 12 months.

APPRENTICESHIP OF THE YEAR

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For more information about Total, please visit our website: www.total.co.uk

31/03/2020 18:23

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