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Learn from these expert speakers at the Fleet Summit this November

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There’s a complimentary guest pass reserved for you to attend the Fleet Summit – where speakers from National Highways, Dundee City Council, WhichEV and the AFP will inform your business strategies.

15th-16th Novembern 2023

Radisson Hotel & Conference Centre, London Heathrow

Hear from expert speakers in the event’s seminars, including:

Fraser Crichton – Corporate Fleet Manager at Dundee City Council, 

Martin Edgecox – National Fleet Manager at National Highways. 

Andrzej Bania – Co-Founder of WhichEV

Association of Fleet Professionals (AFP)

Your place is entirely free of charge, included will be:

– An itinerary of pre-arranged meetings with suppliers based on your requirements and upcoming projects

– Overnight accommodation, all meals and refreshments throughout

– Numerous opportunities to network with other industry professionals

– A place at the 3-course dinner, with entertainment

CONFIRM YOUR PLACE

Alternatively, contact us today for further information.

Do you specialise in fleet LPG/Alternative Fuel & Fuel Management solutions? We want to hear from you!

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Each month on Fleet Management Briefing we’re shining the spotlight on a different part of the fleet market – and in August we’ll be focussing on LPG/Alternative Fuel & Fuel Management solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help fleet buyers find the best products and services available today.

So, if you’re a supplier of LPG/Alternative Fuel & Fuel Management solutions and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Chris Cannon on 01992 374096 / c.cannon@forumevents.co.uk.

Here’s our features list in full:

Aug – LPG/Alternative Fuel & Fuel Management
Sept – EV Infrastructure
Oct – Duty of Care
Nov – Grey Fleet
Dec – Service, Maintenance & Repair
Jan 24 – Electric & Hybrid Vehicles
Feb 24 – Dash Cams
Mar 24 – Driver Training
Apr 24 – Accident & Risk Management
May 24 – Fleet Management Software
Jun 24 – Telematics/Tracking
Jul 24 – Contract Hire & Leasing

Image by Paul Brennan from Pixabay

EV myths and misconceptions tackled in ATS white paper

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ATS Euromaster has published a White Paper with the aim of unpicking many of the myths and misconceptions surrounding electric vehicles on fleet.

Called EV Mythbusters, the firm has engaged the views of experts in the electrification field to provide a more balanced perspective on fleet electrification as the sector continues to grow.

The latest leasing report from the BVRLA has shown that the overall leasing fleet has grown marginally despite the lack of vehicle supply – by 0.3% – but behind the growth has been the increase in business contract hire (up 4% year on year) and salary sacrifice (up 34% year on year) supported by fleet sales up 39% year on year.

Electric vehicles accounted for 53% of all the new cars that were put onto business contract hire yet, with many of the national media titles continuing to take a strong anti-EV stance, misconceptions freely circulate about the suitability of EVs for fleets.

However, says the tyre and maintenance provider, that doesn’t mean that fleet managers and drivers can simply swap ICE for EV without a change of approach both to fleet management and driving.

“We fully support the move to electrification but there appears to be a high level of misconception disseminated at the moment. This White Paper shines a light on the myths to get to the truth about EV suitability, such as EV battery degradation and appropriateness of commercial vehicles for electrification,” said Jason Chamberlain, sales director at ATS Euromaster. “We’re not suggesting that fleet electrification is an easy task, and it will require a new mindset from both fleet managers and drivers, but it’s not insurmountable, and some of the stories surrounding EVs are at best misinformed or just false. This White Paper helps balance the narrative.”

Among the contributors to the White Paper are Dr Euan McTurk – Consultant Battery Electrochemist at Plug Life Consulting; Paul Kirby – eLCV Expert at EV Essentials; and Philip Nothard – Insight & Strategy Director at Cox Automotive.

The White Paper takes a look at the myths surrounding service, maintenance and repair (SMR), battery degradation, commercial vehicle fleet suitability, and EV residual values, and provides straightforward answers to the many uncertainties of electrification.

Why Europe’s driver shortage isn’t just a personnel problem 

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By Stephan Sieber, CEO, Transporeon

It’s no secret that global supply chain disruption has dominated headlines since mid-2020. And, over the past three years, the continuing aftershocks of the COVID pandemic, combined with geopolitical factors and an economic downturn, have caused significant upheaval for shippers, cargo receivers, service providers, brokers, freight forwarders, carriers – and of course consumers.

Today, driver shortages in the road freight sector are threatening to cause further disruption. Catalysed by initial pandemic downtime – which saw many drivers leave the industry, take early retirement or extended sick leave – driver shortages are now a significant strain on supply chains. Especially given rising demand for road freight transportation.

A recent report by the world road transport body IRU revealed that there could be an eye watering two million unfilled driving positions in Europe by 2026 (already now there are around half a million unfilled positions in Europe).

In the UK, a drop in migration from Central and Eastern Europe caused by Brexit has further highlighted driver shortages where, according to the French transportation union FO Transports, the number of driving vacancies in France could currently be as high as 50,000. The situation is even worse in neighbouring countries where there are currently around 80,000 vacant driving positions in both Germany and Poland (IRU).

Transforming the ‘Great Retirement’ into greater opportunities

With a global recession looming, it’s widely believed that we’ll soon see an influx of candidates onto the job market. Though this may ease personnel shortages in some sectors, it’s unlikely to solve road freight driver shortages.

The primary reasons for this are demographic shifts leading to the ‘Great Retirement’. The same IRU report found that 30% of drivers are planning to retire by 2026 – outstripping any potential recession-related increases in driver availability. So, it’s clear that simply poaching drivers from elsewhere in the industry isn’t a long-term solution for companies.

The IRU also found that young people are joining the driver community in the road freight industry at a rate between four and seven times lower than drivers are retiring – with the average age for European drivers now over 50 years old.

Twentieth-century approaches won’t solve a twenty-first-century problem

The bottom line is that the European driver shortage is not just a personnel problem. Dwindling driver numbers would not present such a challenge if transport operations were smarter and more efficient. According to scientists at the MIT Center for Transportation and Logistics, increasing the efficiency of US drivers by just 18 more minutes of active driving time per day could solve the country’s driver shortage. This claim was based on research in the US but pointed out that the same principle is likely to apply in Europe.

There’s a multitude of ways that companies can look to boost efficiency. But to do so, they must first understand where there’s room for improvement. More are now turning to solutions that offer real-time insights. This helps companies to uncover previously hidden inefficiencies (like empty runs and excessive waiting times in yards) and improve visibility by tracing deliveries.

Within the logistics industry, another trend we’re seeing is Autonomous Case-handling Robot systems (ACR) to reduce labour needs. Self-driving trucks are still a long way off in logistics transportation, but it is possible to make significant efficiencies within warehouses in loading and unloading processes, as well as automating time slot and yard management processes. But by implementing smart software, businesses can start to look to reduce waiting times for drivers from hours to minutes.

Conclusion

Ultimately though, enhancing the effectiveness of transport logistics depends on increasing collaboration between all participants, rather than companies simply working to optimise its own performance – as is currently often the case. Indeed, a recent survey of international supply chain experts revealed that the vast majority rate ‘increased collaboration between supply chain partners’ as both ‘highly probable’ and ‘highly desirable’ in the run-up to 2025.

When working collaboratively as part of a wider network, rather than in isolation, organisations can significantly streamline key processes such as freight sourcing, transport execution, dock scheduling, freight matching, payment and settlement.

Solving the UK and Europe’s road freight driver shortage can’t be done overnight. And, moving forward, companies should view this as an operational matter, rather than simply an HR or personnel problem. The solution lies in adopting a network approach and collaborative solutions that focus on finding new efficiencies.

With the unique approach of combining automation, real-time insight, and collaboration, a transportation management platform can alleviate the driver shortage, reducing empty miles, eliminating unnecessary dwell times and optimising yard operations – the integral intersection between the road and the warehouse.

Lightfoot’s Elite Driver Championship reveals first winner

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Lightfoot has announced the first four-figure winner of its new driver engagement initiative, the Elite Driver Championship.

Providing prize draws ranging from £1,000 to £7,000, the new, big cash prize pot joins the suite of rewards that Lightfoot Elite drivers can win through the Lightfoot driver app, including its weekly Drivers’ Lottery, where individuals can win up to £200.

The difference with the Elite Driver Championship is that to be eligible for the big-ticket cash prizes, drivers must maintain an average score at or above 85% – Lightfoot’s Elite Driver Standard – for the duration of the prize draw.

That’s exactly what Tom Curtis of DeterTech in Telford achieved, bagging himself £4,000 in the very first draw.

Launched in April, the Elite Driver Championship gives drivers who consistently achieve the Lightfoot Elite Driver standard the chance to win £1,000 every single month, as well as the opportunity to enter the mid-year bonus bonanza, where three drivers will win between £500 – £2,000.

At the end of year, drivers who have maintained the Elite Driver Standard from April through to December will be eligible for the Championship Christmas cash pot of £7,000. Three drivers will also win between £500 – £2,000.

Paul Hollick, Managing Director of Lightfoot, said: “Adopting a driver-focused rewards-based approach has been a game changer for fleets using our ‘beyond telematics’ tech. Now, thanks to Allianz’s sponsorship, we have serious sums of money on offer that can be won in the Elite Driver Championship. We believe this will lift driver engagement to all-time highs, week-in and week-out, helping to streamline the process of fleet management.

“That’s important because drivers who actively engage with Lightfoot through the app perform at least 10% better drivers than those that don’t, which means that fleet managers only need to focus on the few drivers that consistently fail to hit KPIs. In terms of fuel savings, emissions reductions, driver safety, and lower accident levels that’s huge, bringing immediate and lasting benefits to fleets, their drivers, and the environment.”

Lightfoot’s in-cab device engages with drivers in real-time, delivering ‘in-the-moment’ nudges that modify driving styles for the better, aided by audible end-of-journey scores. This guides drivers towards their weekly goal of achieving Elite Driver status, which unlocks access to weekly prizes, The Drivers’ Lottery, and the Elite Driver Championship.

Lightfoot’s ‘beyond telematics’ approach has helped fleets achieve engagement of 90%+, realising average fuel and emissions savings of up to 15%, EV range extension of up to 15%, as well as reductions in at-fault accidents by up to 40%, wear and tear costs by 45%, and vehicle idling by 24%.

Since the launch of the Drivers’ Lottery in 2019, Lightfoot has given away over 111,000 prizes, with a total value just shy of £370,000, and has helped cut CO2 emissions in fleets by over 200,000 tonnes, reducing fuel use by almost 90m litres.

Fortescue’s new Banbury facility to focus on powertrains for off-road EVs

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Fortescue is ‘significantly’ expanding its battery and electric powertrain and battery production operations in the UK via an additional facility in Oxfordshire that will create more than 120 jobs.

The expansion is part of Fortescue’s aim to grow its British presence through the recent integration of British manufacturers WAE (formerly Williams Advanced Engineering).

“With Fortescue’s investment, British engineering will be at the cutting edge of the green energy economy with WAE’s battery systems providing world leading technology to the entire global industrial sector,” said Fortescue Chairman Andrew Forrest. “It is heartening to have the UK’s Trade Secretary today at our factory in Oxfordshire to support this message of British technology excellence for both its people and its highly attractive working environment.”

Following entry-into-force of the Australia-UK Free Trade Agreement (FTA), Fortescue will open the new site this year in Banbury, significantly expanding its UK manufacturing capability, supplying advanced batteries and electric powertrains globally.

The new location will be focused on production of a wide range of zero-emission products for the off-road sector, including trucks and trains. It will form part of a new global business aimed at driving decarbonisation in all fields of economic activity, while building sovereign capabilities in emerging technology.

The factory will cover over 13,500m2 in total and employ over 120 highly skilled engineers, technicians, apprentices and graduates, with recruitment for the industrialisation programme starting now.

This announcement ensures Australia and the UK build sovereign capability in an area of central importance to future economic development and is another key win of the UK Government’s free trade agenda.

The integration follows Fortescue gearing up to meet growing global demand for the development, manufacture, and supply of advanced electrification technology solutions to the off-highway sector.

The first prototype build is targeted for July/August 2023 with the first mining haul truck module due for completion in August 2023.

Rising affordability will see commercial EV market ballon to $680bn by 2027

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The global commercial Electric Vehicle (EV) market is projected to grow from $30.7 billion in 2020 to more than US$682 billion by 2030, driven by fleet usage and public transport.

That’s according to ABI Research, which cites commercial segments such as local delivery, public transportation, logistics, and governmental fleets as being among the biggest early adopters.

“The growing affordability of EVs has been one of the biggest drivers for fleet electrification efforts. There has been a trend of EVs becoming more and more affordable due to advancements in battery technology and economies of scale in production. One of the main factors driving the affordability of EVs, especially EV trucks, is the decreasing cost of battery technology. Lithium-ion battery costs have fallen by over 85% since 2010, and this trend is expected to continue,” said Adhish Luitel, Supply Chain Management & Logistics Senior Analyst at ABI Research.

Beyond affordability, factors such as government incentives, lower operational costs, simplified maintenance, and enhanced performance compared to regular internal combustion engine vehicles also have been key drivers of adoption among private sector fleets.

“A good example of government regulation is the EU’s recent ‘Fit for 55’ legislation in Europe. This legislation will only allow the sale of zero-emission vans by 2035 and has been a big driver for ZEV adoption among fleets in Europe. Similar requirements are also being considered for trucks and might be implemented soon,” says Luitel. Amazon announced last year that it was ordering 100,000 EV trucks from Rivian, an American EV startup. DHL has been using EV trucks in its urban delivery operations for several years and has announced plans to electrify 60% of its fleet by 2030. UPS has also been an early adopter of EV trucks, with more than 12,000 electric and hybrid vehicles in its fleet worldwide. IKEA US has converted all its last-mile fleets in New York to EVs. Domino’s Pizza has said it will roll out a fleetof 2023 Chevy Bolt EVs across the United States to reduce its environmental impact and attract new delivery drivers.

As trucking rentals and third-party logistics companies have started electrifying their fleets, OEMs have also been actively rolling out new EV and ZEV models to accommodate the market demand. OEMs like Daimler, Volvo, Ford, Navistar, Toyota, Hyundai, Nikola, BYD, Hino, and Isuzu have recently been rolling out new EV and ZEV truck models. Yet, despite the pickup in EV and ZEV production, charging and refueling infrastructure remains a barrier for long-haul trucking.  

“One of the critical aspects of successful fleet electrification is establishing a robust charging infrastructure to support the charging requirements of fleets. This is especially key in long-haul trucking. Balancing on-premises and public charging is a key consideration when investing in fleet electrification. Although OEMs are trying to address long-haul trucking drivers’ range anxiety with larger battery packs, more efficient electric drivetrains, and using hydrogen fuel cell technology, fleet operators need to strike a balance between on-premises charging and public charging. The optimal approach depends on factors like fleet size, operational requirements, geographic distribution, and available resources,” concludes Luitel.

These findings are from ABI Research’s Zero-Emission Vehicle Adoption in Fleets: Investments, Use Cases, Reduced Costs, Regulations, and Infrastructure application analysis report.

Image by RAEng_Publications from Pixabay

SAVE THE DATE: Fleet Summit Winter 2023

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Did you miss last week’s Fleet Summit? Not a problem! The next event will take place in November 15th & 16th 2023 at the Radisson Hotel & Conference Centre Heathrow – Join us!

Make sure you register today as demand is already high following the most recent event.

Your delegate pass will give you access to industry presentations, as well as your itinerary of 1-2-1 relaxed meetings with budget-saving suppliers.

There is no hard sell at this event, just a great opportunity to gain industry insight and build business relationships to prepare for every eventuality.

Confirm attendance here.

Do you specialise in fleet Contract Hire & Leasing? We want to hear from you!

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Each month on Fleet Management Briefing we’re shining the spotlight on a different part of the fleet market – and in July we’ll be focussing on fleet Contract Hire & Leasing solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help fleet buyers find the best products and services available today.

So, if you’re a supplier of Contract Hire & Leasing solutions and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Chris Cannon on 01992 374096 / c.cannon@forumevents.co.uk.

Here’s our features list in full:

Jul – Contract Hire & Leasing
Aug – LPG/Alternative Fuel & Fuel Management
Sept – EV Infrastructure
Oct – Duty of Care
Nov – Grey Fleet
Dec – Service, Maintenance & Repair
Jan 24 – Electric & Hybrid Vehicles
Feb 24 – Dash Cams
Mar 24 – Driver Training
Apr 24 – Accident & Risk Management
May 24 – Fleet Management Software
Jun 24 – Telematics/Tracking

SMMT data indicates 10th consecutive month of UK new car sales growth

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The UK new car market has posted its longest uninterrupted period of expansion for eight years, as registrations grew 16.7% in May to reach 145,204 units according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The performance marks 10 consecutive months of growth, although registrations remain -21.0% below pre-pandemic 2019 levels.

Large fleet registrations continued to drive the growth, up by 36.9% to 76,207 units, reflecting a regularisation of supply following challenging supply issues in 2022. Registrations to private buyers fell slightly by -0.5% to 65,932 cars, while smaller business fleets registered 3,065 units, a year on year rise of 22.5%.

Petrol-powered cars remain Britain’s best sellers, accounting for 57.1% of all registrations.3 Alternatively powered vehicles, however, continue to make up an ever-larger share of the market, with plug-in hybrids (PHEVs) rising 23.0% to reach a 6.2% market share and hybrids (HEVs) growing 22.2% to comprise 12.3% of all registrations. Reflecting the dramatic transformation of the market over the last three years, May saw battery electric vehicles consolidate their position as the UK’s second most popular power train. A further 24,513 joined the road during the month, up 58.7% on May last year to secure a 16.9% market share.

Of the new cars registered in May, lower mediums, superminis and dual purpose were the most popular, comprising 86.3% of the market. There are now zero emission options available in every single segment of the market, with more than 80 models – around a quarter of all new car models available – from which to choose. Furthermore, these new BEVs have an average battery range of 236 miles, well in excess of UK drivers’ average weekly mileage of around 100 miles.4

While billions of industry investment is delivering choice and growth, however, the speed of the shift needs to accelerate. From January we expect to see the Zero Emission Vehicle Mandate in force, which will set a minimum quota for new battery electric vehicle registrations for every brand. While the models and volumes will be available, ensuring the market demand is there will require action from every stakeholder. A supportive fiscal framework, simplified planning processes, faster grid connections and the provision of a nationwide network of reliable, affordable and sustainable charge points will give drivers considering the switch the confidence to purchase. Investments are coming but regulated public charger targets commensurate with those for new vehicle registrations would give drivers greater confidence and help accelerate the UK’s zero emission transition.

Mike Hawes, SMMT Chief Executive, said: After the difficult, Covid-constrained supply issues of the last few years, it’s good to see the new car market maintain its upward trend and the fact that growth is, increasingly, green growth is hugely encouraging. Transforming the market nationwide, however, and at an even greater pace means we must increase demand and help any reticent driver overcome any concerns about electric vehicles. This will require every stakeholder – industry, government, chargepoint operators and energy companies – to play their part, accelerating investment to drive decarbonisation.”