Author: Simon Pavey

The haulage industry has seen a whole host of fluctuations and hurdles in recent years, with driver shortages and inflation impacting fuel economy, while the impacts of the Russia-Ukraine war have had a knock-on effect on haulage operations in the UK. Additionally, hauliers are still facing adjusting their operations to a post-Brexit landscape, with new challenges continuing to arise as we move forward.

Moving into 2023, many of these hurdles remain present, and haulage companies are still grappling with finding drivers that operate to a high standard and managing fuel costs. Additionally, pressures to make HGV fleet operations more sustainable is significant, meaning fleet managers need to take affirmative action now to:

• Assess the viability of electrifying a business’ fleet;
• Identify necessary changes to infrastructure;
• Develop a long-term fleet strategy that balances environmentally conscious practise with cost effectiveness.

To help haulage fleets take the first few crucial steps, we’ve prepared some insights to help flag the key considerations that need to be made.

Operational Costs

2022 saw an onslaught of cost increases with inflation and rising fuel costs hitting almost all industries hard, and paired with industrial action many businesses including those in haulage have felt the pressure heading into the new year.

With such financial uncertainty, it has been difficult for many businesses to manage cashflow and keep a lid on operational costs. Despite these difficulties, it seems that the haulage industry is balancing the situation well with haulage price-per-mile falling 3% month-on-month as of March 2023, despite the 12% rise that we have seen on diesel over the past year.

For haulage fleet managers looking to improve spending where possible, there are tools that can help you to identify points of weakness within your operations and boost efficiency. Telematics services such as Tele-Gence can help you to monitor driver performance and idle time with real-time tracking to help you get accurate mile-per-gallon reports – which could help open up a conversation with drivers around how to rest efficiently, plan fuel-efficient routes, and improve safety.

Taking route planning to the next level, tools like My Transport Planner offer an improved method of route planning that not just organises your fleets trips but does so to ensure they are fully optimised for efficiency. My Transport Planner also utilises a pay-as-you-go system to help keep operational costs low.

EVs

Electric vehicles are rising in popularity both for business and personal use, with more companies opting for electric cars and vans for their business travel. While the haulage industry is lagging behind on EV uptake, there are signs that this could be about to change.

The number of clean air zones is increasing in the UK and pressure on the fuel economy resulting from the Russia-Ukraine war has only further ramped up the shift to electric and alternative fuel source vehicles for the haulage industry.

Fortunately, the landscape for electric HGV vehicles is rapidly developing and we are seeing improvement in the capability of these vehicles that is making them an increasingly viable alternative to traditional diesel engines. It is expected that these vehicles will be cost-competitive as soon as 2030 or sooner.

Driver shortage

One of the main areas of ongoing concern is the acquisition and retention of talent within the industry. The driver shortage first saw significant increase prior to 2020 and in the last four years the HGV industry has lost 53,000 drivers.

In a domino type effect, poor rates of pay and unsociable hours have pushed many to leave the role and the increased pressure on remaining staff is increasing the number of those stepping away from the industry. Lack of appeal for potential new starters combined with an aging pool of drivers means that as more HGV drivers retire there aren’t enough being trained to compensate.

In order to rectify the shortage, industry leaders within Haulage need to incentivise new starters and increase retention – and this applies to SMEs too. There are a number of ways that you can rethink your hiring process and job benefits in order to do this, starting with simple things like:

• Updating your company website.
• Investing in strong advertisements to attract staff.
• Ensuring that your company compensation package is appealing with good wages.

If you’re interested in reading more around how to build a positive working culture that helps acquire and retain staff, read our insights on staff attraction and retention.

Driver Safety

Driver safety is always of the utmost importance, both for the wellbeing of your staff and for the safety of those around them. Unfortunately, news stories of HGV collisions, drifting, and other dangerous practises are all too common – and this is something that the industry has to answer for.

Safe driving not only protects the wellbeing of those on the roads, but it is also vital to protecting the reputation of haulage companies, which in turn is vital to attracting and retaining both staff and business. An important component of the driver shortage is the lack of highly trained drivers who adhere to the practices necessary to operate a HGV to a high standard of safety, and as such it’s important that fleet managers monitor driver safety, especially when onboarding new staff.

MyDriveSafe.Expert is a great option for streamlining safety checks on vehicles so that you can reduce time and money spent managing the upkeep of manual vehicle safety checks. Used in conjunction with driver tracking telematics, fleet managers can be sure that vehicles on the roads are safe to drive and are regularly checked and monitored as well as keeping a tab on driver performance.

Supporting Haulier Management

Fuel Card Services offer a range of software and tools designed to streamline fleet management and administration, that could support your haulage fleet in tackling the turbulent landscape. Whether you are looking to improve driver safety, optimise your fleet routes, or are looking to cut costs on maintenance and services, and improve mileage tracking, our software and telematics tools integrate seamlessly and offer great savings on time and money.

If you would like to learn more about the services available through Fuel Card Services and how they can support your haulage fleet then please get in touch.

The pursuit of decarbonisation and NetZero 2050 is driving more and more businesses to look for alternative fuel sources to power their fleets. With the variety of low carbon alternative fuel sources rising and access to these products increasing each month, there’s an interesting question for fleet managers to answer concerning the role that different fuel types play within commercial fleets.

Making sustainable changes to the way we power our fleets is no simple nor cheap task, and the logistics of this shift means many fleets are already using a range of fuel types across their vehicles. Recent studies suggest this is a pattern we could see continue.

So, is multifuel the future of fleet power, and how does it help the process of decarbonisation? In this article, we take a look at a recent survey of multifuel use in shipping fleets and consider what the findings could similarly mean for road travelling fleets.

The Global Centre for Maritime Decarbonisation survey

The topic of multifuel fleets has come into recent discussion with the publishing of results from a survey by the Global Centre for Maritime Decarbonisation. The survey, conducted across 29 shipping companies making up 20% of global capacity, showed that 46% of respondents already had run pilot programmes for use of one or more low carbon alternative fuels and had plans for further implementation in place.

The survey also showed that across the respondents there was uncertainty for what fuel use might look like by 2050, however many expected there to be a variety of fuel alternatives used across fleets. Some of the fuels in discussion included green ammonia, biodiesel, liquefied natural gas (LNG), biomethanol, and biomethane.

This survey, whilst focused on the fuel trends of maritime fleets, sparks an important conversation about how the uptake of more sustainable fuel alternatives might look as we move forward.

Multifuel use in road fleets

Decarbonisation is of growing importance for fleet managers and is a growing focus in vehicle acquisition. But despite growing awareness of the importance of decarbonising our fleets and the variety of Government incentives that aim to help finance this change it is still a costly process, especially for larger SME fleets.

The likelihood of a swift and total shift from combustion engines to, for example, electric vehicles is low for most fleets. Electric vehicles are expensive, and there is infrastructure required to facilitate their use. Add on the developments that we are seeing in alternative fuels and the increasing availability of these means that more than likely we will see multifuel use across fleets come way before isolated use of a carbon neutral solution.

Taking a moderate approach to decarbonisation of fleets is likely to be one of the more practical and affordable ways that fleets can reduce emissions. Introducing alternative engine type vehicles when affordable, and utilising compatible alternative fuels that reduce environmental impact where possible in traditional engine vehicles.

How this could affect fleets

Fleet managers have historically only had to worry about diesel and petrol when managing fuel usage and purchase. A fleet that features combustion and electric vehicles, and perhaps hydrogen vehicles or vehicles running on biodiesel might seem like a quick trip to a complicated fuel management process.

Fortunately, a diverse fleet doesn’t need to be a hinderance for fleet managers, and the task of fuel management doesn’t need to become something exceedingly complicated or long winded.

EV charge cards such as the Allstar One Electric, Shell Recharge Card, and the bp Fuel & Charge card are great examples of how the shift to multifuel fleets is already being accommodated. These cards are versatile, meaning whether you use traditional fuels or electric, you can use these cards to get them filled up and recharged.

With access to thousands of refuelling/charging sites around the country, these cards are great for diverse fleets.

You can learn more about our range of EV charge cards, or get in touch with our team today to discuss the right fit for you, whatever your fleet looks like.

In recent years, the haulage industry has seen staff numbers drop by nearly 17%. Combined with other elements of a turbulent landscape, including navigating a post-COVID and post-Brexit market, and the impacts of the Russia-Ukraine conflict, the HGV driver shortage is leaving supply chains around the country under immense pressure.

Why is there a shortage of lorry drivers?

Such a significant drop in qualified HGV drivers in the last four years, estimated to be at least 76,000, is indicative of a number of challenges within the industry, including the age of the haulage workforce and the demanding nature of the jobs with insufficient compensation.

Aging workforce

One of the biggest hurdles haulage faces is the fact that the average age of hauliers is only increasing. With nearly 50% of HGV drivers in the UK aged over 50 years old, more and more of HGV fleet drivers are reaching retirement age. With an insufficient uptake of HGV roles in younger workers, the more HGV drivers we see leave the industry for retirement or other reasons, the thinner the workforce will become.

With fewer than 16% of the workforce aged 16-35, the disparities will only grow without proper measures taken to increase retention of those not at retirement age and increase uptake of HGV driver training by those starting their careers.

Physically and mentally demanding work

Haulage is a demanding industry and one that a career in will put significant pressure on ones body and mind. With working days frequently lasting longer than 9 hours, and the role requiring physical strength as well as the mental strength and resilience to remain focused while driving in isolation for hours and even days at a time.

The role of a HGV driver is not a social one, and for many the isolation of the job can get increasingly difficult as the years go on. Paired with the physical impacts of an often sedentary work life, a career as an HGV driver can have a lasting impact on mental and physical wellbeing.

In significantly male dominated industries, it’s also important for fleet managers to be aware of how culture impacts how wellbeing in all its forms is handled. Mental health and the open discussion of mental health difficulties is something that is still not widely undertaken, particularly in industries like haulage where the workforce is predominantly older men.

These are all factors that need to be carefully considered by haulage companies and trainers looking to reshape the industry to attract new talent and retain it.

How do we solve the HGV driver shortage?

With haulage playing such an essential role in the supply chain for business around the country, finding a solution to the driver shortage is one marked with urgency to prevent further disruption, but the solutions require some significant change from within the industry.

To attract new talent

Haulage companies need to rethink how the industry is marketed to potential new starters, in order to increase appeal and get people interested in training to be a HGV driver. This starts with quality training, increasing the availability of apprenticeships and improving rates of pay.

Inflation and the cost-of-living crisis in the UK have been hard hitting on individuals and businesses alike. With these economic challenges expected to last well into 2024, haulage companies need to consider how to persuade new starters that taking on this new and challenging roll will be a beneficial decision.

Additionally, investing in high quality and attentive training is what will give new starters their first impression of the industry, and will set them up with all the skills necessary to undertake the job confidently, safely and effectively. It’s also worth implementing training on mental health, wellbeing, and physical awareness to help foster a culture of care within the industry.

To retain talent

Staff retention is important both for new starters as well as those already working in the industry. To help limit the number of drivers choosing to leave the industry early, creating a positive working culture and ethos will help to demonstrate to all staff that the industry is a valuable and attentive on to work in.

Rewards programmes are a great way to incentivise workers, and continuous training can help to ensure that fleet drivers are always up to date on the knowledge and aware that their growth and development are being invested in.

Keeping an open dialogue is also a great way to demonstrate to staff that they are more than just industry tools. What this can mean for fleets is regular conversations about things the company does well and areas that could use improvement, as well as open communication about drivers personal experiences within the industry.

You can read our tips and tricks on attracting and retaining drivers for more insights.

What are the government doing to help the haulage industry?

There are a number of measures the government has put in place in recent years to help combat the HGV driver shortage, of which many were outlined in an open letter addressed to the UK Logistics Sector delivered off the back of the coronavirus lockdowns.

Firstly, the DVSA (Driver and Vehicle Standards Agency) increased the amount of testing through overtime and allocating additional staff. Successful passes then increased from 1,150 per week (pre-COVID) to 1,500. The DfT (Department for Transport) aims to increase this number to 2,000 by consulting about the “delegation of the off-road manoeuvres as part of the HGV driving test”.

Changes to provisional licenses could allow candidates to progress straight to the articulated lorry test without first having to pass the rigid lorry test.

Relaxed requirements are also being considered in relation to newer car license holders taking extra tests to drive car/van and trailer combinations. The hope is that this would free up more testing capacity for HGVs.

The government also increased funding to the Large Goods Vehicle Driver apprenticeship. This aims to tackle the huge issue of the barrier to entry for younger people. With an apprenticeship such as this, they will be more financially supported, making becoming a licensed driver a more realistic prospect.

This letter outlined further steps such as increasing support towards hiring, relaxation of driver’s hours rules and maximising retention.

The full letter can be read here.

Is the end of the HGV driver shortage in sight?

While the driver shortage is a tricky hurdle to handle for the haulage industry, there is hope for a resolution. Whilst the shortage still puts pressure on the supply chain for now, with dedicated efforts from haulage companies and trainers there is the potential for a positive shift in the industry that will see the an increase in haulage trainees and new starters and an improvement in retention of all staff.

HGV fleet managers should look to start making changes where possible to encourage a positive change in culture that will get the workforces growing.

HGV fleet fuelling with Fuel Card Services

While haulage fleet managers are dealing with the impacts of the driver shortage and the difficulties of a fluctuating fuel economy, one way to keep costs down and ease up on the admin is with the right fuel cards.

Fuel Card Services provide a range of fuel cards with a host of benefits that mean you can help to increase the efficiency of fleet fuelling and cost management, and reap benefits for your fleet along the way. You can browse our range of fuel cards here, or enquire today for support from our team of experts.

The last year has been a turbulent time for fuel prices, and while the cost of fuel hit its peak in July of 2022 the high prices are still hitting businesses and homes alike. For fleets, fuel is an essential that cannot be easily cut back on meaning that businesses with fleet vehicles have been some of the hardest hit by the prices and continue to feel the pinch.

What are the current fuel prices?

After the peak in the summer of last year, we have seen prices begin to come down. Despite this drop, prices remain high, and it’s predicted that the cost of diesel will see another rise later this year.

These harsh spikes in fuel prices that we have seen and the levelling out of fuel at a price that remains much higher than the average 4 years ago is amplified by the stark comparison to the record lows seen during the first lockdown, where lack of demand saw fuel prices plummet.

Why are fuel prices still high?

The main cause of these high fuel prices remains to be the ongoing Russia-Ukraine conflict and the impact it is having on the wholesale price of crude oil, with Russia being the second biggest source globally.

Further pressure is put on the oil market as major supplying countries including Saudi Arabia, Iraq and several Gulf states announce their plans to cut output of crude oil by as much as 1 million barrels per day; a cut that will hit fuel prices and put further pressure on fleets and other vehicle operations.

Government decarbonisation package

At the end of March, the UK government unveiled a new decarbonisation package committing £400 million to the rollout of charging infrastructure across the country following a new zero emission vehicle mandate.

The package is intended to help propel the uptake of electric vehicles in a bid to reduce carbon emissions from transportation significantly. In relation to the fuel market fluctuations and the high price of traditional fuels, increased uptake of EVs reduces reliance on these types of fuel and reduces demand on the crude oil market.

For fleets, introducing electric vehicles could be a useful tool to weather the fuel-price storm and move towards a more modern operation that sees electricity overtaking petrol and diesel as the ‘fuel’ of choice.

Understandably, there is hesitance to invest in EV vehicles for industries using larger vehicles than cars.  However, developments in technology mean that electric last mile delivery vehicles and vans, as well as larger vehicles and HGVs are all seeing technological advancement that are bringing them quickly up to speed with their small EV cousins.

Managing fleet fuel costs

There are no signs that the cost of fuel is due to drop significantly in the coming months, and shortages caused by reduced output could even see costs go up again as we move through 2023, so it’s important that SMEs take any and all reasonable steps to reduce their fuel bills.

Investing in electric vehicles and infrastructure is one way that fleets can defend themselves against the fluctuating fuel landscape, but for more immediate and affordable measures fleet managers can implement now, route optimisation and the right fuel cards are a great place to start.

My Transport Planner

My Transport Planner is a pay-as-you-go tool designed not just to plan routes, but to optimise them. What this means for fuel economy is the most efficient and effective routes that get your drivers to their destinations via the smartest route.

Where traditional route planning tools miss tricks that end up costing your fleet more in fuel expenses, My Transport Planner uses innovative tech to help you make savings not just on fuel but also on time.

Fuel Cards from Fuel Card Services

The right fuel card is not just a tool for saving money on fuel, however this is a huge benefit for fleets looking to make savings wherever possible. Other than help your fleet get the best rates on fuel, a suitable fuel card can also help reduce admin costs, improve monitoring, and increase control, as well as offering perks and benefits that your business and drivers can utilise.

You can browse our range of fleet fuel cards or fill out a quick enquiry form and our team will be on hand to help you find the right card for your fleet.