Motor Transport 7 September 2020

Sharp ■ Informed ■ Challenging

7.9.20

RHA says proposed new rules shift liability and could endanger cyclists

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By Tim Wallace

The RHA has expressed “serious www.mtawards.co.uk concerns” over proposed changes #MTAwards2020 to the Highway Code that it said would leave HGV drivers legally liable in the event of a collision.

The Df T has made three key NEWS INSIDE 0940_MTA advert_celebrate_43mm wide 01/04/2020 x 64mm high.indd 16:56 1 proposals: that all drivers give way to pedestrians crossing or waiting A touch of class to cross the road; that cyclists be New trade association given priority at junctions when launches to unite logistics travelling straight ahead; and that training specialists p3 a new ‘hierarchy of road users’ be introduced.

Back to business But in a statement, the RHA Our expert panel of operators said the changes would “undersee Covid-19 restrictions ease mine the simple principal that we – but fear public affection for are all responsible for the safety of hauliers will be a passing fad p4 ourselves and all others when using the roads”.

It’s showtime!

Instead, it said, they would “put The new virtual CM Show at more responsibility for other road the end of this month will users onto the users of the largest keep you connected p6, p18 vehicles”.

“In our view this responsibility Fill her up... translates into legal liability. The Hyundai’s Swiss trial looks extent of the change to liability and to solve the hydrogen fuel how this impacts a presumption conundrum p8 of responsibility in the event of a

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CELEBRATE SUCCESS

Highway Code changes would ‘target drivers’

collision is not explained in the consultation. It simply places more responsibility on the driver of the largest vehicle.”

The RHA said it was “concerning” that the change removes the advice in the current Highway Code “that all road users are aware of the Highway Code and are considerate to others”.

It called for all road users to exercise a duty of care with “a responsibility for their own and others’ safety when using the roads”.

The RHA also raised concerns over a proposal to extend pedestrian priority and to give cyclists right of way at junctions when overtaking or undertaking turning vehicles.

“This rule gives a right of way to any cyclist passing up the inside of a left turning vehicle or overtaking a right turning vehicle on the outside,” the RHA explained.

“This is a major change in basic road rules which makes the vehicle in front responsible for the behaviour and safety of a following road user.

“Giving cyclists a right of way to pass inside of a left turning vehicle or outside a right turning vehicle is dangerous and irresponsible. Cyclists exercising this right of way will put themselves in grave danger.”

The association will respond directly to the consultation, which closes on 27 October, and urged all operators to respond as early as possible to show the weight of industry feeling.

SPARK OF GENIUS: Volta, the Anglo-Swedish electric vehicle start up, has officially launched its 16-tonne battery electric urban delivery truck, the Volta Zero.

Designed as an EV from the ground up, chief executive Rob Fowler said the company has taken orders for 12 vehicles from customers including DPD to take part in a pilot in the UK and France in the first half of 2021. The company expects to build 500 units in 2022, rising to 5,000 annually by 2025. The truck features 360-degree cameras and has a maximum 125-mile range, making it suitable for ‘hub and spoke-style’ delivery operations.

For more details see motortransport.co.uk.

News extra: Zero emissions future p10 Business barometer p12 Viewpoint p14 Asset finance p20 MT Awards shortlists p24, p26

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New body to unite training firms Skills for Logistics has announced the launch of a major new independent trade association for the UK’s specialist logistics training providers.

The Logistics Skills Network aims to bring together key organisations from the sector to develop and share best practices, knowledge, experience and resources, and offer a communication platform for the coordination of collective interests.

The network intends to work closely with government organisations including the DVSA and DfT and will also receive strategic support from industry leaders.

Skills for Logistics (SfL) was founded in 2015 to address the skills gap within the sector. It now

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By Tim Wallace

claims to be the industry's leading end-point assessing organisation.

The new network is a collaboration of SfL and Mantra Learning,

a leading training provider to the logistics and automotive sectors offering apprenticeships and short courses.

David Coombes, chief executive of SfL and a co-founder of the Logistics Skills Network, said: “Vocational training has never been properly represented in logistics.

This allows us to be a collective voice with lots of training providers working together and will enhance how we’re seen and allow us to properly represent the training industry.”

Mike Warner, senior external affairs manager at the DVSA, added: “The DVSA is looking forward to building on our new relationship to pioneer the development of the Logistics Skills Network.

“We will collaborate with it in our service development plans and ensure active engagement for member representation.”

Advent to acquire 75% stake in Hermes UK from Otto M20 barrier ‘not ready until 2022’ Private equity firm Advent International is to acquire a 75% stake in Hermes UK in what is described as a “business as usual” agreement.

The deal will see German retailer Otto Group sell three-quarters of the business to Advent in a deal reportedly worth £900,000.

Otto Group will continue to own 25% of the company while the management of Hermes UK will lead it as an independent operation, with business continuing as normal for staff, suppliers and customers.

In a statement Advent said: “The transaction will facilitate further investment by Hermes in technology and infrastructure and support the growth of the business in the rapidly growing parcel delivery sector.”

The deal follows Hermes’ call in July for 10,500 ‘parcel people’ to meet the surge in home shopping during the lockdown.

■ Hermes UK has appointed Carl Lyon as chief operating officer to support the company’s growth plans.

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Drivers forced home every four weeks

FORS Gold haulier collapsed in debt FORS Gold member and tipper operator PJ Brown (Construction) went into administration owing £6.5m to creditors, an administrator’s report has revealed.

The Crawley-based firm was tipped over the edge by the impact of Covid-19, which saw construction sites in lockdown from March.

The report said the firm reached peak performance in 2017 achiev7.9.20

ing £1.3m in profit. But by the end of 2018 profit at the construction transport firm, which had an operating licence for 79 vehicles, had fallen to £794,240.

The report said the lockdown put additional strain on cashflow and the firm’s ability to pay outstanding debts, resulting in it going into administration in June this year with the loss of 86 jobs.

New EU drivers’ hours and tachograph rules have been introduced that require drivers to ‘return home’ every four weeks.

The DfT said there is also a ban on taking regular weekly rest periods in a vehicle and more flexibility in the scheduling of rest periods for some drivers on international work.

The amendment to Article 8 of the current rules includes new provisions for rests and breaks for drivers when journeys involve transport by ferry or by rail.

There is also a new requirement to keep a full record of all other work.

A moveable concrete barrier on the M20 to keep Kent’s roads moving in cross-channel disruption won’t be fully completed until 2022, according to Highways England (HE).

A specialist ‘zipper’ machine will enable the barrier to be deployed quickly on the motorway and is aimed at ensuring congestion-free traffic flows after the Brexit transition period ends. HE said the £60m scheme should ensure the M20 can be kept open.

In February, transport secretary Grant Shapps said the barrier would be on standby from later this year. But according to HE’s website, it will only be fully complete in 2022, with December 2020 marked as the date only for “temporary resilience”.

■ Andrew Baxter, MD of Europa Worldwide Group, has rejected claims there will be major disruption at the channel ports at the end of the Brexit transition period. “All this talk of queues and backlogs is massively overstated and I don’t really believe it will be an issue,” he told MT. “In order to cross you will need to have relevant, valid customs documents. Nobody in their right mind is going to go to the port without those documents.

It’s a slightly patronising view of truck drivers that people think they’ll just go anyway and sit there honking their horns.”

MotorTransport 3

News

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MT’s panel of operators see life slowly returning to normal – and transport being ignored again

Goodwill hunting In the last of our Trucking Britain out of Covid-19 surveys, we asked operators if they expect the surge of affection for the logistics industry to last beyond the pandemic.

Cullimore Group, Moreton Cullimore, MD

Coverage: UK, but predominantly the Midlands and south-west.

Main business sectors: Transport and general haulage, aggregate supply and ready mixed concrete. Small increase in volumes in August, but from a reduced figure in first place.

1 August 26August Trucks on fleet 60 60 Laid up (%) 40 25 Drivers employed 50 50 Furloughed (%) 50 30 Redundancy process has begun with small number of staff but no confirmation yet.

When do you expect volumes to return to pre-Covid-19 levels?

There are signs of improvement but I fear the winter months.

Do you think the government did enough to help the road freight transport industry specifically through the lockdown?

They did some good, but underestimated the support for parts of the sector gravely. CBILS does not work for a small margin industry and they could have done better.

Do you think the goodwill among the general public towards the transport industry will last beyond the pandemic?

I hope understanding will be better with the education happening right now and hopefully with the national lorry campaign over coming weeks the RHA are doing. I do worry our memories will be short lived in the future which is why we need to take every opportunity now.

Caledonian Logistics, Derek Mitchell, MD

Coverage: Four DCs cover half of Scotland including islands. Distance division covers mainland UK. Main business sectors: Pallet distribution, general goods, food products and storage services. Pallet distribution and full load work saw a slight increase in August of around 5% to 10%.

1 August 26 August Trucks on fleet 74 74 Laid up (%) 0 0 Drivers employed 89 89 Furloughed (% 8 8 No staff made redundant in August.

Volumes have already returned to pre-Covid levels.

Do you think the government did enough to help the road freight transport industry specifically through the lockdown?

Yes, both furlough and road tax reductions.

Do you think the goodwill among the general public towards the transport industry will last beyond the pandemic?

We will be taken for granted – still people do not realise the impact the transport industry has on their day-to-day lives.

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

Coverage: UK national.

Main business sectors: General haulage transport operator predominantly serving the import and export community.

1 August 6 August Trucks on fleet 24 27 Laid up (%) 0 0 Drivers employed 24 27 Furloughed (%) 0 0 No staff made redundant in August.

Our freight levels are currently exceeding pre-Covid-19 levels.

4 MotorTransport

Do you think the government did enough to help the road freight transport industry specifically through the lockdown?

With operators working on small margins, the query is whether a payback will be possible and whether we are simply delaying an inevitable.

Do you think the goodwill among the general public towards the transport industry will last beyond the pandemic?

Regrettably, the norm will return to be an expectation that goods will simply appear on supermarket shelves, with no care of how it happens.

Turners Group, Paul Day, MD

Coverage: UK national.

Main business sectors: Temperature controlled, containers, tankers and general haulage for transport and temperature controlled warehousing and packing services. The food sector continues to be buoyant.

Container sector is quite strong but volatile. Building has recovered well although activity remains around 5% down. General haulage has also recovered quite well. Fuel sector remains well below pre-Covid-19 – aviation very badly impacted and general road fuels down 13%.

1 August 26 August Trucks on the fleet 2,031 2,067 Laid up (%) 0 2.5 Drivers employed 2,348 2,387 Furloughed (%) 6 3 Nine staff made redundant in August.

When do you expect volumes to return to pre-Covid-19 levels?

The economy has recovered quicker than I expected and appears to still be growing. Short term, I expect the improvement trend to continue but flatten out at around 95% to 97% of pre-Covid-19 levels. I remain cautious about 2021 when the positive impacts of the various government schemes to assist business and the economy are removed. It may take several years for the economy to reach pre-Covid-19 levels.

Do you think the government did enough to help the road freight transport industry specifically through the lockdown?

I feel the government has been slightly too generous overall but the economy is recovering faster than it may have done without the full help given. Realistically the government couldn’t have done any more without long-term debt increasing even further.

Do you think the goodwill among the general public towards the transport industry will last beyond the pandemic or will it quickly be taken for granted again?

I suspect goodwill towards our industry will be short lived.

7.9.20

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News Don’t miss the new CM Show: the virtual event with all the answers

Recognise the benefits Ever considered joining the DVSA’s Earned Recognition scheme?

The voluntary programme sees hauliers regularly sharing fleet performance data in exchange for their vehicles being less likely to be stopped for roadside checks, or visited by DVSA officials on site.

Join us online at the Commercial Motor Show 2020 and hear firsthand from the DVSA how the scheme has been progressing.

You’ll also learn about the real-

life experience of membership from family haulier Freightlink Europe, and the type of technology you might use for your data analysis from Aquarius IT. The Commercial Motor Show 2020 brings you exciting knowledge sharing seminars and a vast virtual exhibition of the latest vehicles, technology and services. It takes place from 29 September to 1 October. Register now for your free entry pass at thecommercial motorshow.vfairs.com.

DAF backs show as step back to normality DAF Trucks is calling on operators to attend the Commercial Motor Show virtual exhibition, which takes place from 29 September to 1 October.

MD Laurence Drake said: “Here is a fantastic opportunity to reconnect and to re-energise the industry’s community spirit – something that has always been evident at regular shows.

“I urge everyone – operators, manu-

facturers and industry bodies – to register and to attend the show, and to engage with each other once again.”

As well as highlighting the extensive DAF range – including the latest FAW 8x4 rear-steer ‘tridem’ chassis – the manufacturer will be discussing key industry topics including London’s HGV Safety Permit scheme, MoT testing, clean air zones and Brexit.

Mercedes-Benz has it all virtually covered Mercedes-Benz Trucks UK is showcasing its marketleading products and services at the Commercial Motor Show 2020.

Attendees can find out why the new Actros was crowned International Truck of the Year 2020 and learn about its features including MirrorCam, Multimedia Cockpit, Enhanced Predictive Powertrain Control, Active Brake Assist 5 and Active Drive Assist.

Its Econic will be on show after being awarded a five-star rating by TfL, which means no additional equipment is required to obtain a 10-year HGV Safety Permit. eMobility is set to be a hot topic, and Mercedes-Benz Trucks UK’s parent – Daimler Trucks – leads the way. It was the first manufacturer to offer a series-production allelectric 7.5-tonner – the FUSO eCanter – which has been in operation in the UK since 2018.

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7.9.20

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Hydrogen has a long and rather unsuccessful history in the transport industry but now, two years after its initial presentation at the 2018 IAA show in Hannover, a joint project of Swiss start-up H2 Energy and Hyundai Truck & Bus is becoming a reality.

For a long time truck makers and energy suppliers were slow to adopt hydrogen as a transport fuel. More recently a shift of perspective has occurred, and everybody now seems to be turning to hydrogen fuel cells. But patience has been needed, because most of the plans only foresee tangible results from 2025 onwards.

New Swiss project has managed to circumnavigate the chicken-andegg conundrum over hydrogen adoption, writes Martin Schatzmann

Heading home on hydrogen

Which comes first?

There is a major problem when deploying hydrogen and fuel cell vehicles. Without filling stations, there can be no vehicles. And without vehicles, there are no filling stations.

But this is what the H2 Energy and Hyundai Truck & Bus project in Switzerland has managed to address by unifying all the parties involved, from truck maker to hydrogen producer to hauliers and filling stations, to create an environment in which it can all happen at the same time.

That’s why the International Truck of the Year jury honoured the Hyundai Hydrogen Mobility (HHM) joint venture with the firstever Truck Innovation Award 2020 last November.

As part of the push from HHM and its partners to create a circular economy for hydrogen in the transport sector an important step was taken on 7 July 2020 with the opening in St Gallen, in the east of Switzerland, of the second commercial filling station for hydrogen.

Four additional stations will follow before the end of 2020 along the main east-west traffic axis, leaving a total of six stations between Lake Constance and Lake Geneva.

More stations are in the planning stage and by 2023 the hydrogen supply should extend nationwide. Unlike some countries, in Switzerland no government incentives have been required to deploy the technology or infrastructure, because, as those involved concede, the business has to stand on its own two feet to assure the project’s continued success.

With the rollout of the filling stations, all those involved in the hydrogen economy can play their role, including truck makers and hydrogen producers. A crucial part of the process is H2 Mobility Switzerland which combines all 8 MotorTransport

the major service station operators, as well as many of the big Swiss hauliers and large retailers.

The first hydrogen vehicle started work on 18 February – an Xcient Fuelcell being used by Hyundai itself to test the vehicle technology and infrastructure prior to serial vehicle production.

At the same time as the inauguration of the new filling station in St Gallen, Hyundai shipped the first 10 Xcient Fuelcell trucks from South Korea for customers. These trucks will all start work in daily operations by the end of September.

Building momentum

By the end of the year a total of 50 customer trucks are expected to be in operation. Another 150 trucks are planned for 2021, with a total of 1,600 hydrogen vehicles expected to be on the road by the end of 2025.

The hydrogen involved is being provided by Hydrospider. The first 2MW electrolyser is already up and running at a hydroelectric power station in Goesgen and can produce up to 300 tonnes of green hydrogen per year. This is enough to supply 40 to 50 fuel cell trucks

or up to 1,700 cars. A second unit under construction near the new service station in St Gallen should be operational in 2021.

In the Swiss project, the trucks remain under the ownership of HMM and are charged out on a pay-per-use basis, with hauliers and retailers negotiating their specific transport requirements.

HHM sets a specific price per kilometre, which includes the hydrogen, service and support, and the service stations allocate fuelling costs direct to HHM. This allows precise calculation of the total operating costs and helps to forecast the volume of hydrogen required more accurately.

The service stations negotiate their purchase price for the hydrogen with Hydrospider and resell it with a surcharge. Despite the high initial costs a filling station needs no more than 10 to 12 trucks using their site to make a profit.

All the filling stations are equipped with 350 bar nozzles for trucks and 700 bar ones for cars.

The key to the commercial success of the project lies in the heavy goods vehicle tax in Switzerland (LVSA), which is

waived for trucks with zero emissions. This allows Hyundai to bring the total cost of ownership down to parity with a traditional diesel truck.

A similar project is now underway in Norway in the form of joint venture Green H2 Norway. There, the game-changer will be the lower production cost of hydrogen , thanks to a very low electricity price.

■ Martin Schatzmann is senior editor of TIR TransNews and the Swiss member of the International Truck of the Year jury.

7.9.20

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As the world continues to grapple with the consequences and effects of the coronavirus pandemic, the climate change challenge has been all but removed from the front pages.

One of the changes brought about by the pandemic, however, is that reduced transport use, especially the use of freight transport, has had a major effect on city air pollution.

The challenge of climate change and the target of achieving zero emissions will remain long after a solution for the pandemic is found, and very soon the world’s attention will be back on the search for the most effective ways of achieving this most ambitious target.

As a new book, The Road to Zero Emissions, explains, electric trucks will involve new challenges, new business models and the emergence of technology, artificial intelligence and applications that will drive massive change in this industry.

A new book, The Road to Zero Emissions, explores the history of road transport motive power and looks ahead to a zero carbon future

A bumpy road to zero emissions?

when it is introduced to hydrogen trucks, will provide the industry with a game-changing combination of compliant, profitable and environmentally acceptable transport.

It will see major changes to both demand and supply chains around the world and provide many new opportunities for high-paid, sustainable employment.

What is very interesting, however, is that many of these changes are being instigated by Chinese organisations. Geely, Huawei and Alibaba are all names that will soon be as well known as Apple, Amazon and Google.

A change unnoticed

One of the biggest changes in the heavy truck industry over recent months, which has largely gone unnoticed, has been the activity of Chinese company Geely, owner of Volvo Cars.

A company that is arguably not that well known in UK commercial vehicle circles, Geely is also the largest shareholder in both Daimler and Volvo Trucks, the world’s two largest manufacturers of heavy duty trucks.

This will no doubt have a significant influence on the future strategies of both truck companies – as was borne out with the recent announcement that Daimler is to join forces with Swedish competitor Volvo Group to develop fuel cells for trucks, with the aim of bringing hydrogen-powered heavy duty vehicles to the market in the second half of the decade.

The German truck maker will create a new €1.2bn legal entity, which will consolidate its 25 years of hydrogen expertise. Volvo will pay more than €600m (£540m) in cash for 50% of the as-yet unnamed business.

The joint venture by the world’s two largest truck makers marks one of the biggest investments by the industry into fuel cell technology, as it braces itself for strict EU-wide emissions targets.

Hydrogen trucks cost much more to produce than diesel models, which make up the vast majority of European fleets.

However new European regulations require manufacturers to bring the CO2 footprint of trucks 10 MotorTransport

down by 30% in a decade, and lithium batteries used in electric vehicles tend not to offer the range required by commercial customers.

Showing promise

Although hydrogen fuel cell technology lags behind batteryelectric in progress towards widescale use for heavy duty trucks, it is nonetheless beginning to emerge as a promising solution.

In fact, some experts believe this particular fuel-technology platform may offer the long-term zero emissions solution for heavy duty trucking applications, because of the benefits it offers on driving range and refuelling time.

For heavy duty fleets, fuel costs are paramount in determining total operational costs. The cost of hydrogen fuel, which is currently much more expensive than diesel, is a significant barrier to commercialisation of heavy duty fuel cell vehicles. Hydrogen costs approximately $10 (£8) to $15 per kg.

To achieve parity with current global diesel costs the cost per kg for hydrogen needs to be closer to $3.

Current diesel costs are around $2.75 per gallon in the USA and £6 in the UK, equivalent to $8.

Therefore, the cost of diesel fuel

in Europe is currently three times that of the USA. In spite of the current relatively high cost of hydrogen there is clearly an opportunity for the UK and Europe to be early adopters of hydrogen as a fuel for the future in medium and heavy trucks but it will require government intervention at some stage from both the UK and EU administrations.

This will apply to both taxation regimes and refuelling infrastructure development.

Today, however, there is almost no hydrogen fuelling infrastructure designed to serve medium and heavy duty trucks as the limited existing or planned hydrogen fuelling stations are mainly designed to serve passenger vehicles. Other than a few demonstration programmes, the only hydrogen stations that can accommodate heavy duty vehicles are designed to refill fuel cell buses.

Complex journey

The Road to Zero emissions will be a complex journey and many of the current players in the field of transport, logistics and automotive manufacturing, in the face of the Chinese competition, may not be able to make it. They will need to be prepared to challenge their current business models and develop collaborative partnerships along the lines demonstrated by Geely, Daimler and Volvo.

■ The Road to Zero Emissions by Dennis Evans, Des Evans and Alistair Williamson is published

by Kogan Page, priced £49.99. MT readers can get a 20% discount by quoting code MTR20.

Connectivity drive

In addition to the development of hydrogen fuel cells there is also the development of vehicle connectivity.

Volvo Trucks now has over a million trucks worldwide connected and this has major significance for monitoring vehicle performance and compliance.

This level of technology, if and 7.9.20

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Business barometer

motortransport.co.uk

Between Covid-19, the US election, and the UK-EU trade deal, there is some turbulence ahead

Fasten your seatbelts...

GDP

Our chart illustrates the severity of the UK economy’s decline during the second quarter (Q2). The comparison is with the pre-Covid Q2 of last year.

The hit to UK GDP is not solely because of our high Covid-19 rate.

It is compounded by the fact that so much of the UK’s GDP comes from household consumption, especially, says the Bank of England, “spending that involves interactions with other people”. So the shutdown of hospitality, 12 MotorTransport

Oil and fuel

At the time of writing (late August) Brent crude oil cost $45 per barrel and bulk diesel was typically 88ppl to 92ppl.

The US Energy Information Administration forecast last month that Brent’s average price in Q4 will be $43.5, before rising to $49

by Q2 2021. Other analysts expect to see $55 in Q2 next year.

So, at current exchange rates, fuel prices should not change

RPI

2.5%

CPI

2.0% 1.5% 1.0% 0.5% 0.0% Jan

Feb

Mar

Apr

May

June

July

Poland

Sweden

Netherlands

US

Japan

Germany

-5%

EU

0%

Italy

GDP PERCENTAGE DECLINE: Q2 2020 vs Q2 2019 Belgium

Good economic data is hard to find, but sterling’s value against the dollar offers some respite.

The pound’s average value of $1.31 in August was the highest seen for eight months, helping counter the rising fuel price. The pound’s gain is actually due to the fact that the dollar has been shedding value rapidly throughout the summer.

However, the pound has continued to lose value against the euro.

It averaged just below €1.11 in July and August, the lowest for a year and well below February’s average of almost €1.19 after the ‘Get Brexit Done’ deadline of 31 January.

Sadly, the pound’s contrary performances against the dollar and euro do not cancel each other out. Data from the Bank of England shows that 19% of UK trade value is with the US whereas 48% is with countries using the euro.

3.0%

France

Sterling

ANNUAL INFLATION

UK

entertainment and tourism is a hammer blow to countries like the UK and Spain which depend on them so much.

Countries faring better, such as Germany, Japan and Sweden, derive more of their GDP from manufacturing and other sources.

And if they handled Covid well, their GDP figures look even better.

South Korea’s Q2 GDP is only 2.9% below Q2 2019, while China’s is reported to be 3.2% up.

So when will GDP recover? The Bank of England’s best estimate is that Q3’s GDP will be approximately 18% above Q2’s. But the Bank believes it will be late 2021 before GDP is back to the preCovid level of Q4 2019. And that is assuming an “orderly move to a comprehensive free trade agreement between the UK and the EU on 1 January 2021”.

Spain

A dramatic downturn in inflation reflects the Covid-related collapse in consumer demand. Falling fuel and energy prices were central to May’s CPI (consumer price index) inflation rate of just 0.5%, the lowest for four years. These prices have hardened in the last couple of months, so inflation has picked up slightly.

But in its Monetary Policy Report last month, the Bank of England forecast that CPI will head down again as the new temporary VAT cut for hospitality filters through.

The bank believes CPI inflation will hit 0.2% in Q3, but rise sharply to sit at 1.2% to 1.8% throughout 2021.

Our chart also shows RPI (retail price index) inflation, which is running well above CPI as usual.

RPI has been in limbo ever since the Office for National Statistics (ONS) removed its status as a ‘national statistic’ in 2013. “We do not think it is a good measure of inflation and we discourage its use,” said the ONS. Nevertheless, RPI still determines annual increases in business rates, rail fares, government gilt investments and countless commercial contracts.

Rejecting the idea of ditching it altogether, a government consultation on how to improve RPI’s calculation method closed last month. The objective is to bring RPI inflation into line with that of CPIH (Consumer Prices Index including owner occupiers’ housing costs), which has averaged around 0.9 of a percentage point below RPI over the last five years.

The response to the consultation is due to be published in the next couple of months.

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EXCHANGE RATE 1.32 1.30 1.28

$ to the £

Inflation

1.26 1.24 1.22 1.20 1.18 Jan

Feb

Mar

Apr

much over the next few months, but could rise to 93ppl to 100ppl

by Q2 next year.

This outlook, however, could easily be upset, and not only by Covid-19. The US election is on 3 November: oil prices are often turbulent immediately after the

May

Jun

Jul

Aug

event. Ditto the value of the dollar, especially if the result has a bearing on the US-China trade war. And UK-EU trade deal negotiations come to a head soon, which will certainly bring a swift reaction in the pound as financial markets interpret the outcome.

7.9.20

AWARDS CEREMONY ONLINE BROADCAST ON WEDNESDAY 7 OCTOBER, 7PM We will always put safety first, as we know all of you do every day in your operations. This year we will be broadcasting the awards ceremony online to make sure our entrants and winners get the recognition they deserve.

Registrations are now open for the Motor Transport Awards broadcast where the 2020 winners will be revealed. Registration for the broadcast is free so sign up today

REGISTER HERE: WWW.MTAWARDS.CO.UK

#MTAwards2020 @motortransport

|

@motor_transport |

Motor Transport

Viewpoint

motortransport.co.uk

Can we hold on to the love?

T

he operators who responded to our latest Trucking Britain out of Covid-19 survey (see page 4) were generally pessimistic about the prospects that the goodwill generally felt toward the transport industry during the Covid-19 lockdown will last once things return to a Steve Hobson more semblance of normality.

Editor But the comments to an excellent article Motor on the trials and tribulations of hauliers in Transport The Times online edition might offer some hope that people do understand the valuable role played by logistics in delivering just about everything people take for granted.

Out of the 22 reader comments on the story only two were less than positive: “Maybe time to have a real push at train freight – M62 east this morning, 2 lanes, wall to wall trucks” and “Is this really newsworthy? No”.

Of course, it is hard to know from the bylines if those praising the industry and echoing the article’s messages about how a low-margin sector has struggled to survive in lockdown are actually in the industry rather than members of the public.

Some were clearly drivers judging by

their intimate knowledge of the poor rates of pay: “Class one around Chester get paid like £10-£11 per hour, or about £100 daily, but you could be stuck behind the wheel for up to 15h. Class 2 is even less than a tenner,” said one.

But typical of the feedback was this: “Many don't understand the huge importance the haulage industry is to the economy. Often operating on wafer-thin margins constantly pressured by compliance as indicated in the article.

Logistics as a whole massively undervalued.

They don’t teach much haulage/logistics in politicians’ choice of useless degree” and “It is also an industry that all other industries in the UK cannot operate without.

“We do seem to find the jobs most essential and fundamental to the continued functioning of our society are paid the least.

Some of those are involved at the coal face in food supply, cleaning, heathcare, social care and protection of citizens. Not many of them could work from home. They just had to get on with it for a few months before anyone remotely thought that face masks could be useful”.

Couldn’t have put it better myself.

Making procurement your digital hero B Dave Brittain Director Amazon Business UK

usinesses in the UK are experiencing digital change, not least in their procurement teams. According to an Accenture report, freight and logistics companies that embrace digital technologies can significantly enhance their competitiveness and boost earnings by up to 13%.

So how can transport and logistics providers use the power of online purchasing to stay on top?

Focusing on ‘tail spend’ – everyday purchases that aren’t needed for production such as office supplies, IT accessories, or staff kitchen items – is one way. These can make up as much as 20% of all expenses.

Money, time and effort costs in tail spend can add up rather quickly. But buying tail spend items online, using a central transparent and efficient system, can recover the unbalanced loss and free the surplus for other digital efforts.

Integrating digital buying into your operation should be as uncomplicated and non-disruptive as possible. A B2B online shop like Amazon Business offers a familiar experience that is easy to use.

14 MotorTransport

Going through the mild disruption of implementing change is worthwhile if the end goal is to keep your business moving forward. So keep focused on the value that an online shop could add to your business.

Digital buying can save businesses a substantial amount of money and time, which is especially useful in transport and logistics where speed of response and flexibility are often indispensable.

Authorised purchasers will benefit from easy and fast access to a wide range of products without having to carry out research in advance.

As a result, through better control and visibility, procurement processes will become more transparent and significantly more efficient.

Procurement, especially of the little things, may not be at the top of every CEO’s list of priorities. But cost saving and innovation certainly are.

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 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 Casling 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.

RoW £163/year. Cheques made payable to Motor Transport.

Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2020 DVV Media International Ltd ISSN 0027-206 X

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 7.9.20

#CMAwards2020

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The

Commercial om m Motor Show 29 September - 1 October 2020

Bringing you a truly virtual experience

Knowledge | Innovation | Inspiration The Commercial Motor Show virtual exhibition hall is filling up well, with an exciting mix of manufacturers and technology firms at the ready to greet visitors.

Taking place from 29 September to 1 October, the brand-new online event brings together all the buzz of a tradeshow, from the socially distanced safety of your keyboard. With three full days packed with live webinars, networking sessions and exhibitors, we can’t wait for readers to head in through our virtual doors.

Commercial Motor has worked hard with its technology

platform partner VFairs to create a virtual exhibition hall experience to rival that of a live event. Visitors will be able to explore products from suppliers ranging from camera equipment and weighing technology right up to the latest model releases from major truck OEMs. You’ll be able to ask questions through live chat forums, watch product demonstrations and download free literature into your virtual briefcase, which you can take home at the end of your session.

Check out what’s happening and book your free place!

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29 September 2020 seminar sessions PLENARY SESSION

BREAKOUT SESSION 2

The post-Covid-19 future

Eco trucks

As the UK recovers from the Covid-19 pandemic, what will its short-to-medium term legacy for the logistics sector be?

While the focus has shifted to cutting emissions from truck engines, has the UK neglected a huge opportunity to reduce carbon emissions per tonne-km by moving to larger, more efficient vehicles? So what are the options for increasing the payload and so the efficiency of HGVs?

10.30am Can the high street make a comeback?

Dino Rocos, non-executive director, Clipper Logistics and former COO, John Lewis Partnership

10.50am Fashion retail logistics in the 2020s Tony Mannix, chief executive, Clipper Logistics

11.10am The role of infrastructure logistics Steven Cleary, sales director, Wincanton

11.30am How will the industry finance new trucks?

2.00pm High cube, high efficiency Kevin Buck, MD, Hazcomp

2.15pm 48 tonnes within 48 miles Andrew Malcolm, chief executive, Malcolm Group

2.30pm The Swedish experience with LHVs Thomas Hull, owner, Gnesta Frakt

Toby Poston, director of corporate affairs, BVRLA

BREAKOUT SESSION 3 BREAKOUT SESSION 1

The Road to Zero The Covid-19 pandemic will not deflect the government from its Road to Zero strategy of achieving net zero carbon emissions by 2050, and with 30 years representing just six more buying cycles for heavy trucks, the industry needs a steer on what technology to invest in – quickly.

2.00pm Hydrogen v battery power for road transport David Cebon, professor of mechanical engineering, Cambridge University

2.20pm The role of biofuel in cutting emissions Brian Robinson, head of commercial vehicles, LowCVP

2.40pm Tomorrow’s electric vehicles today

Future technology The pace of change in road transport will not slow just because of the Covid-19 pandemic and operators have to keep up to stay afloat.

Tyres, fridges and tachographs are all seeing rapid technological progress and smart operators need to be aware of what is coming over the horizon.

2.00pm Future tyre technology Gary Powell, technical manager – north region, Bridgestone

2.15pm Fridges without engines Graham Usher, MD, Eco Truck Refrigeration ( Hultsteins distributor)

2.30pm Electrification and decarbonisation of transport refrigeration

Rob Fowler, CEO, Volta Trucks

Francesco Incalza, president, EMEA Transport Solutions, Thermo King

3.00pm Low carbon heavy trucks

2.45pm Smart tachographs

Jorge Asensio, Iveco, alternative fuels business development manager

Adrian Barrett, director, Road Tech

Go online to see the agenda for day two and day three.

Register now at: https://thecommercialmotorshow.vfairs.com/

Commercial Motor Show

Connecting from afar The inaugural Commercial Motor Show will take place online this autumn... don’t miss your chance to join the must-attend event of the virtual calendar

T

he Commercial Motor Show 2020 is an exciting new concept – a virtual exhibition and conference for the road transport industry. Taking place from 29 September to 1 October, it will provide an opportunity for road haulage operators to check out the latest vehicles, products and services on the market, all without the need for social distancing.

Visitors to this free-to-attend event will be invited to take part in a range of interactive webinar sessions covering topical issues including Brexit, reducing emissions, the industry’s skills shortage, the Direct Vision Standard and much more. There will also be the chance to partake in live exhibitor chats, video calls and product demonstrations.

To answer any questions regarding this exciting event, MT has put together a handy guide for you. We look forward to seeing you in the virtual world!

What exactly is a virtual exhibition?

Simply put, it’s an event run completely online, which is hosted on a webpage for a period of time. Think of it in the same way as a traditional, live trade show, but with exhibitors and visitors connecting with one another on the web, rather than in person.

Is it easy to take part/attend?

Absolutely. You simply register and click on the link that is sent to you (remember to check your spam if it doesn’t arrive in your inbox), log in and you will find yourself in the event. You’ll then be able to move about between webinars, exhibitors and the networking lounge.

Do I need to download specific software?

No. Popular web browsers, such as Google Chrome, Safari, Firefox and Edge, will work just fine.

Will there be technical help available?

Yes, 24/7 – and a simple link to access it.

Do I need to stay on my computer all day?

Not at all. You can come and go as and when it suits your working day.

Will I be able to talk directly to the exhibitors?

Of course. Incorporating audio, video and text-based 18 MotorTransport

chat, exhibitors can answer any questions you may have.

Is there a webinar programme?

Yes. Visit thecommercialmotorshow.vfairs.com/ for speaker line-up and full timings for every day of the show.

What happens if I miss a webinar?

Webinars will all be available online to watch at your convenience after the live event.

How will the networking lounge work?

An informal chatroom environment will encourage all visitors to make valuable connections with key industry peers and businesses they would potentially like to work with. There will also be the opportunity to meet the experts taking part in our seminar programme.

Are the truck OEMs exhibiting?

Six of the major manufacturers are taking part: DAF, Iveco, Isuzu Truck (UK), MAN Truck and Bus UK, Mercedes-Benz Trucks and Renault Trucks. There is also a range of exhibitors from across the industry to explore in the live exhibition hall area.

How long after the show will the information still be available?

It will remain live for 30 days after the event.

7.9.20

motortransport.co.uk

Is it free to attend?

Yes, completely free. Simply register online.

How do I register?

How can I exhibit?

For more details, contact our sales team: emma.tyrer@roadtransport.com.

thecommercialmotorshow.vfairs.com/

Who’s organising this?

The show is organised by Road Transport Media, the group that produces Commercial Motor, Motor Transport, Truck & Driver and Transport News, and their associated websites and events.

What will you do with my details?

We will only share your details with the event exhibitors that you visit so they can follow up with you after the show has finished.

How long will a visit take?

This is entirely up to you. You can dip in and out of the scheduled webinars according to your interests, and spend as long as you like in the lounge and perusing the exhibition stands.

Are there goody bags?

The exhibition stands will have competitions running and may offer virtual goody bags when you visit them.

7.9.20

MotorTransport 19

Asset finance

Borrowed time for leasing?

Despite industry flexibility, the impact of Covid-19 could have had a similar effect on asset acquisition that the 2008/9 financial crash did. But are leasing companies now waiting for the inevitable? Louise Cole reports

T

he Financial Conduct Authority (FCA) helped consumers but did leasing companies no favours by announcing that leasing agents should voluntarily offer payment holidays to lessees during the Covid-19 lockdown There was no specific industry policy on B2B arrangements that MT has been able to find, and unfortunately the national leasing association BVRLA was unable to comment. Once the FCA announced guidance on payment holidays for consumers, it was very difficult for the leasing companies to refuse forbearance when business customers requested it.

‘Almost all’ approved

According to Paccar Financial MD Steve Barfoot, 700 operators asked for help and “almost all were approved”.

MAN Financial Services’ director Peter Collins says MFS gave payment holidays of various kinds to 430 customers, covering 4,500 vehicles.

Every payment holiday request required the business to be rewritten, including rescheduled direct debits and recalculation of charges. Some customers have also expressed surprise that their resumed costs are higher than they were before, to reflect either the period of non-payment or the extension of the agreement.

“It was like writing a year’s worth of business in two months,” he says.

The distinction has been that the finance or leasing companies have seen their cashflow under pressure and their risk increase.

“It was our choice. We want to support our customers anyway,” says Collins. “If you have a good customer who is in genuine difficulty, it’s right to stand by them. We learned that in 2008 and then reaped the dividends subsequently.”

20 MotorTransport

John Fawcett, CEO of the transport division at Close Brothers Asset Finance, says it devised a range of options for those whose turnover dropped, including payment holidays and reduced payments.

“We are an approved lender on the CBILS (Coronavirus Business Interruption Loan Scheme), which has allowed us to continue to lend to customers adversely affected

by Covid-19.

“We’ve provided both CBILS unsecured loans and released equity from existing finance agreements to inject much-needed cash into customers’ businesses.

For those customers who can no longer afford deposits because Covid-19 has drained their case reserves, additional funding has been provided to anyone requiring new or replacement assets.”

Fawcett says Close Brothers moved its team to home working but didn’t furlough anyone so that they could all be available for customer service.

A custom approach

Ryan Jones, sales director of Trailer Resources (TRL), says it treated every customer request on a case-by-case basis. “If customers can get through difficult times, you need to help them get through them because otherwise you’ve lost that custom. It serves no one to play hardball and end up driving people into bankruptcy.”

The asset finance houses were indeed between a rock and a hard place. It is always in their interests to try to get the customer to remain in the contract, because 7.9.20

motortransport.co.uk

Oiling the wheels: John Fawcett, CEO of the transport division at Close Brothers Asset Finance, highlights payment holidays and government loans as a positive step during the pandemic

voiding it leaves them with an extremely expensive lump of metal sitting on a forecourt – and too many returns will devalue their entire portfolio.

TRL says it absorbed all the costs of the flexibility it gave customers and sought no help or deferrals on its own behalf, as this would leave it in the best position when business returned to normal.

MV Asset Finance broadcast its willingness to offer flexibility as soon as lockdown kicked in. Saying that “literally nothing is off the table”, MD Steve Cairns says they had developed a list of support measures for companies of all sizes, including start-ups.

This included VAT deferrals, flexible finance with zero deposits, interest-only repayments for the first 12 months, and invoice finance utilising up to 90% of unpaid invoices.

It also offered to refinance existing assets to raise cash to inject into the business.

Anecdotally, various people mention rumours of leasing or finance companies that stopped answering the phones, went to ground or experienced severe delays in answering customers’ queries. However, MT has not been able to substantiate specific incidences of this, and it is fair to say that all companies were working under extreme conditions, with limited staff numbers and unprecedented levels of customer service enquiries.

But many leasing and finance companies were unavailable for comment for this article.

Payment holidays carried most hauliers through the difficult months of lockdown and the CBILS has also 7.9.20

eased business interruption. However, the CBILS is due to end in October, which is potentially when the real effects of coronavirus on the UK economy will be felt.

There is still a great deal of uncertainty otherwise – for example about whether another lockdown might happen, and whether the economy will spring back or slowly subside as the effects of suppressed demand wear off – and at year end we face the prospect of Brexit fallout, with no more idea what that will mean for trade than we had three years ago.

Hold tight

For the leasing companies, this suggests a bleak horizon.

Although there has been a strong resurgence of new business – as with freight volumes – there is little surety that this will be maintained.

TRL’s Jones says he is optimistic about the remainder of 2020, however, as the TRL fleet is at 99% utilisation after customer volumes exploded.

“It’s been like Christmas in the middle of summer,” he says. “Barring another lockdown I’m very confident for the rest of this year. Of course, we don’t know what will happen in January and February.”

And Paul Wright, sales director of Asset Alliance Group, says that while Covid-19 created even more uncertainty in the market – particularly when it came to operators making future fleet investments – he is starting to see recovery and confidence returning, as companies begin to renew and expand their fleets. ➜ 22 MotorTransport 21

Asset finance

motortransport.co.uk

A spokesperson also says: “Our guidance is clear that credit files should not be negatively impacted because of entering into payment deferrals, whether full or partial, under our guidance. However, lenders may consider other information when making lending decisions, including for example information provided by customers or bank account information. This means that there are other ways lenders can tell whether a customer has taken a payment deferral, which could impact future creditworthiness assessments. This is not a breach of our rules, as lending is a commercial decision for firms based on their own credit risk appetite and the lending criteria which they choose to set.”

In other words, they shouldn’t but they almost certainly will and no one is interested in stopping them. As ever the power rests with the banks – the asset providers will always want to give fleets vehicles, but whether they can secure funding at a reasonable cost is another matter.

Uncertain future

“From an initial slowing, used sales have also recovered significantly. Although not yet back to pre-coronavirus levels, business is beginning to return to what we would expect to see around this time of year,” he says. “It’s likely that flexible rental offerings will be more of an attractive proposition for operators. Customers need reliable, committed fleets to keep business moving and we have seen an increase in demand for those needing additional vehicles to meet increased volume.”

Credit risk

Asking for a payment holiday may have bought hauliers a cashflow lifeline, but it has also risked their credit lines.

Early on in lockdown the FCA and various credit risk organisations made noises about such measures not being reflected in consumers’ credit scores. However, Dawson Finance says this courtesy has not been extended to many fleets who took advantage of payment breaks.

The FCA told MT that no organisation had to grant a three-month deferral if it clearly wasn’t in the customer’s best interests, but that they should all, without delay, find some way of providing “temporary relief” in line with the principle of “fairness”. It also says that none of the guidance published in April or July applies to credit or hire agreements for business purposes.

ALL ABOUT THE MONEY Unsurprisingly virtually no one wrote any new business during April and May. Ryan Jones of TRL says that the spot rental market (the smaller part of TRL’s business) took a heavy dive in April.

Overall Finance and Leasing Association (FLA) figures showed a 47% drop in asset finance in April, a 60% drop in May and a 41% drop in June. Commercial vehicle finance specifically clocked in at £305m in April, 65% down on the previous year; £291m in May, 62% down year-on-year; and £481m in June, which although stronger was still 44% down.

In contrast with these leaden figures are those organisations such as TRL and MAN Financial Services, who say the bounceback has been strong enough to almost put them in a stronger position than they were before. Peter Collins of MFS says although they suffered a two-thirds reduction in new business earlier in the year the July spike has returned them almost in line with their original forecasts.

While hauliers got a measure of protection through their lockdown months, the leasing companies had to weather a cashflow crisis of their own, and, says Barfoot, customers returning vehicles early had a negative impact on residual values. So will the sector suffer losses in its ranks?

The broad consensus is probably not – the problem is not going to be liquidity but appetite for risk. If the market’s funders decide as in 2008 that transport is not a healthy place to lock up their money, the credit lines for the leasing companies will tighten and the price for hauliers will inevitably increase.

22 MotorTransport

The future looks highly uncertain. Covid-19 is not yet defeated, and Brexit might not just disrupt trade but add 10% to the cost of trucks if the UK operates under WTO rules. While everyone in the leasing and finance business talks about “bespoke solutions”, the basic asset acquisition products haven’t changed for decades and while those wrappers suit the tax collectors and the banks, they probably won’t change anytime soon.

So the only choice for operators becomes: do you buy, rent or lease? MFS says it’s seeing a distinct swing away from the old HP ownership model towards leasing, even among smaller hauliers: leasing now represents 60% of the business.

Asset Alliance’s Wright Flexible friend: Asset says: “We know that with Alliance Group sales funding, one size doesn’t director Paul Wright sees fit all. Over the past few some signs of recovery years there has been a move towards more ‘flexible’ versions of traditional funding options. This provides the end-users with even more control and the ability to return or replace assets early depending on operational needs.

“At Asset Alliance Group, we believe lease agreements effectively reflect a relationship rather than simply a price or contract period and we will always work with clients to support their needs and flexibility.”

Danny Glynn, MD of Enterprise Flex-E-Rent, says that lockdown has led to “a real evolution in what fleets ask for”, adding: “They now know that the flexibility to be able to scale fleets down during periods like lockdown – but importantly, to scale them back up again as the situation eases – is vital to effective transport.”

Of course, operators have always known how to use rental to flex their fleets. But he adds that flexibility is also needed to cope with social distancing in what were previously multi-driver vehicles.

Contract hire does appear to be finally gaining some traction among hire or reward fleets, where traditionally it held more appeal for own-account specialists. John Musumeci, director of Central Logistics Solutions, which provides haulage and palletised freight distribution and partners with DHL, says he now takes all his new vehicles on contract hire. “I’ve done the figures repeatedly but it’s simply not cheaper to try to maintain them yourself anymore,” he says.

Collins of MAN Financial Services says the growing sophistication of engine technology has made this move to contract hire almost inevitable. ■ 7.9.20

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MT Awards 2020 shortlists Clean Fleet Van Operator of the Year MT profiles the shortlists for this year’s awards DPD

In line with is wider urban delivery strategy, parcels firm DPD is building its all-electric fleet in “double-quick” time.

By the end of 2020 it plans for more than 600 vehicles – around 10% of its fleet – to be fully electric, up from 147 by the end of 2019.

Six electric models feature on its new fleet, with DPD continuing to encourage vehicle manufacturers to up the pace in bringing new models to market.

Largest of these is a pair of 7.5-tonne all-electric FUSO eCanters, which carry out 200 trunking movements each week transporting goods into DPD’s city centre micro-depots.

These are joined by more than 300 zero emission vans, including Nissan e-NV200s, Peugeot ePartners, Mercedes eVitos and DPD’s “workhorse” 3.5-tonners in the guise of the new MAN eTGE due to roll off the production line this summer.

So keen was DPD to transition its 3.5-tonne models that it even ordered left-hand-drive variants for conversion in the UK, rather than wait until right-hand-drive versions were available.

For the ever-challenging last-mile drops, DPD opted for two UK-first options: Norwegian-built Paxster micro-vehicles, and a bespoke electric cargo bike developed with British start-up EAV. DPD also focused on supporting its driver workforce to install home charging technology, with financial help available for set-up.

Judges said DPD demonstrated “a pioneering approach” and was “taking a leading position for clean vehicles in our industry”.

Gnewt/Menzies

Menzies Distribution subsidiary Gnewt operates a 120-strong fully electric delivery fleet.

It has pioneered sustainable last-mile deliveries for a decade, to date delivering approximately 10 million parcels and reducing CO2 emissions by 67% per parcel. It has saved 687 tonnes of carbon and driven 1.1 million miles emission free.

While Gnewt built up its zero emission delivery business in London, Menzies Distribution has now begun to roll out electric vehicles nationwide, with 48 new electric vans joining the national fleet.

The national launch of the new vans has started in Scotland with three new electric vans, Nissan ENV-200s with a Voltia conversion, operating from Oban and serving routes across West Scotland. These vehicles have a ‘real-world’ range of around 120 miles, with Menzies Distribution working towards using renewable energy for charging across its entire operation.

24 MotorTransport

Sponsored by

The business also has the largest private charging infrastructure in the UK and has developed a smart Vehicle to Grid (V2G) solution to help relieve power demands from the National Grid.

This technology feeds energy from the vehicles back to the grid at peak times and charges vehicles during off-peak demand.

Gnewt has also been working on more aerodynamic van bodies which have reduced drag by 30% and fuel consumption by 10% to 15%.

In addition, environmentally friendly non-PVC wraps have been trialled on part of the fleet.

Judges said: “The Menzies fleet, via its acquired Gnewt business, is making great strides towards a cleaner future.”

UPS

Global parcels giant UPS is aiming to make a quarter of all new vehicles added to its fleet alternative fuel or advanced technology by the end of 2020.

This supports its business-wide ambition to reduce the overall greenhouse gas emissions of its ground operation by 12% by 2025.

The business began its journey with clean technology in 1930 with the very first electric vehicles, before modern EVs emerged in the early 2000s.

It now plans to expand its electric focus through a strategic partnership with technology firm Arrival, which builds Generation 2 EVs. The two firms are developing a pilot fleet of electric delivery vehicles to be trialled in London and Paris. Vehicle design will comprise lightweight composite vehicles with a battery range of more than 150 miles.

UPS has committed to ordering 10,000 units from Arrival over the next five years.

The parcels firm has also tackled the challenge of simultaneously charging a fleet of electric vehicles without an expensive or disruptive upgrade to the power supply grid.

Its charging technology project, Smart Electric Urban Logistics (SEUL), was a collaboration with UK Power Networks and Cross River Partnership, established with funding from the UK’s Office for Low Emission Vehicles.

This saw the development of a smart grid operating system, with the UPS Camden depot acting as test bed for a charging solution to electric vehicles via control algorithms, which respond to network grid capacity.

Judges said: “UPS's commitment for cleaner vehicles is clear, working on a brand new EV and launching in London and Paris and building on what was their ground-breaking charging programme launched back in 2017.”

7.9.20

CLEANER QUIETER 100% ELECTRIC

Renault Trucks’ latest generation Z.E. all-electric range, from the new Master Red EDITION at 3.1 and 3.5 tonnes in van, platform and chassis cab to the Range D and D Wide up to 26 tonnes.

Cleaner, quieter, more efficient vehicles, ideally suited for urban operations and a cleaner world. renault-trucks.co.uk

MT Awards 2020 shortlists Low Carbon Award Sponsored by JLP

John Lewis Partnership (JLP) has committed to a zero-carbon commercial vehicle fleet by 2045, with an interim target of fully fossil-free vehicles by the early 2030s.

A plan spanning JLP's 600 heavy trucks, 750 refrigerated trailers, 1,750 home delivery vans and light trucks and 20 farm vehicles has been developed.

JLP began trials of two Waitrose-branded, biomethane-fuelled Scania 4x2 tractor units in 2016. The successful pilot scheme was followed by the introduction of a further 83 biomethane-fuelled vehicles between 2017 and 2019.

This rolling replacement programme is now being accelerated with 143 biomethane trucks scheduled to enter service in 2020. By 2028, all 600 JLP heavy trucks will operate on biomethane.

Working with gas suppliers to establish a network of biomethane refuelling hubs is also a key focus, with all sites providing open access to other operators.

JLP has also taken steps to reduce carbon dioxide emissions by using telematics and aerodynamically optimised trailers to lower fuel consumption.

On its home delivery fleet, the operator is trialling electric vehicle manufacturer Arrival's Generation 2 concept, with more vehicles in the pipeline.

On 13 of its refrigerated trailers, the operator is piloting an additional alternator on its biomethane artics to provide electrical power for the units.

JLP aims to begin the transition to electrically-powered heavy trucks in 2035, with full electrification completed by 2045, at which point a zero-carbon operation will be achieved.

The judges said JLP had shown “truly exceptional commitment to road freight decarbonisation and innovation”.

Hovis

Since 2015, Hovis has been focusing on four elements in its carbon-reduction strategy: reducing operating miles; improving mpg; reducing or removing the need for fossil fuels; and improving driving styles.

Since the initiative began, the bakery has removed around two million road miles through better route utilisation, adoption of the latest Microlise technology, and retiming customer deliveries.

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It has also boosted mpg around 12% in the same period, introducing lighter vehicles and more aerodynamic trailers into its core fleet.

Driving style has been addressed through telematics training and monitoring, alongside a new CPC module being introduced.

One of its largest carbon-reduction gains has been through the adoption of new technology and fuels.

In November 2018, Hovis became one of the first UK operators to receive two new all-electric FUSO eCanters to trial. In their first 15 months of use, the zero-emission 7.5-tonners saved around 16.8 tonnes of CO2 compared with their diesel equivalents.

Hovis also made the decision to trial HVO (Green D) – a drop-in fuel supplied by Green Bio Fuels in a 12-month trial to include both Euro-5 and Euro-6 vehicles. This saw a CO2 reduction of 5,713 cubic tonnes.

Hovis will now roll out Green D across all its fleet vehicles, with predicted savings by the end of 2021 of 19,364 cubic tonnes of CO2.

The judges said: “Very good example of what companies can do right now, with their existing vehicles, to get within touching distance of net zero.”

Royal Mail

With a 49,000-strong fleet and a universal obligation to deliver to 30 million UK addresses, six days a week, Royal Mail recognises the importance of reducing commercial vehicle emissions, as they generate 59% of the organisation’s carbon footprint.

Through a series of initiatives, the company has already beaten its target for a 20% reduction in CO2 by 2021 compared with a 2004 baseline, achieving 29% to date.

Fleet procurement ensures that the cleanest ICE models only join the fleet, alongside additional electric vans where possible.

Effective route optimisation and driving style analysis through telematics help reduce fuel consumption, alongside trials and fleet adoption of new technology.

These include aerodynamic nose cones which have been retrofitted to 130 double-deck trailers and achieve a 5.15% fuel reduction at 56mph; solar panels for battery charging; and a new moving roof design on double-deckers that can be lowered after loading to reduce drag. Trials are also taking place of CNG fuel and e-cargo bikes.

Royal Mail is also participating in the world’s biggest trial of electric commercial vehicles, Optimise Prime, with investment in three LDV EV80s, 130 Mercedes e-Vitos and 60 additional Peugeot Partners in 2019 – expanding its total EV fleet to 295.

The judges said: “It’s doing all the right things, but on a much bigger scale which is impressive.”

7.9.20

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