Sharp ■ Informed ■ Challenging
Sharp ■ Informed ■ Challenging
February 2024
5.2.24
CMA CGM subsidiary seeks to grow UK operation with major acquisition
Ceva to buy Wincanton
TIMED TO PERFECTION
OPTIMIZE AI POWERS PALL-EX NEW ETA SERVICE
Optimize supplement
Free inside NEWS INSIDE M&M Kerr loses licence
Speed limiter tweak exposed p3
Job losses at EV Cargo
Up to 52 driver roles to go p3
Warehouse fire arrest
Owens Group site destroyed p4
OPERATORS INSIDE ATL Haulage Contractors ������������������������������� p4 EV Cargo ������������������������������������������������������� p3 Evri ��������������������������������������������������������������� p3 Gwynedd Shipping ����������������������������������������� p3 GXO Logistics UK ������������������������������������������� p4 M&M Kerr ����������������������������������������������������� p3 Owens Group ������������������������������������������������� p4
By Chris Tindall
Wincanton has reached an agreement for Ceva Logistics, a subsidiary of French shipping firm CMA CGM, to take it over in a £566.9m deal. T he acquisition values Wincanton at around £764.9m on an enterprise value basis, with shareholders receiving 450p per share in cash, a premium of around 52% to the closing share price as MT went to press. Ceva said the intended acquisition represented an attractive growth prospect and a “unique opportunity to expand Ceva’s offering in the UK and to acquire complementary grocery and consumer expertise”. Mathieu Friedberg, chief executive of Ceva, said: “In addition to the innovative logistics solutions that we could develop and offer together, we would be optimally positioned to answer even more
MAXIMISED DESIGN: Volvo has launched the FH Aero, which is up to 5% more fuel efficient than the current range. The aerodynamically enhanced cab, which is the latest to take advantage of the updated European masses and dimensions regulations, sports a 240mm protrusion at the front. According to the manufacturer, this contributes greatly to the improved efficiency, as well as aiding stability in windy conditions. Further aerodynamic gains have come from Volvo’s Camera Monitoring System, which replaces conventional external mirrors with cameras and screens. The Aero, which will be introduced to markets during 2024 and 2025, will be available in four versions – the FH Aero,
supply-chain challenges for our combined set of UK customers.” Wincanton chairman Martin Read said: “CMA CGM is a highly experienced operator in the industry, and as Wincanton becomes part of this larger business, it will be able to capitalise on the significant growth opportunities ahead. “While we remain confident in the long-term prospects of Wincanton and the wider sector, we recognise that the strong performance of the company has not been reflected in the performance of its shares in recent years. “We therefore believe this offer represents the best opportunity for shareholders to realise the value of their investment with greater certainty.” The Wincanton board said it was highly confident in the longterm prospects of the business as an independent listed company, but that it had considered the
attraction to Wincanton shareholders of the acquisition against the backdrop of near-term macroeconomic uncertainty. The news came only two days after Wincanton released a trading update saying it continued to trade in line with market expectations during Q3 and is on track to deliver around £50.5m profit before tax for the financial year to 31 March 2024. For the three months to 31 December 2023, the group delivered a 1.3% year-on-year revenue boost, continued exiting its closed-book transport contracts and delivered a “seamless” operational performance for retail customers over the seasonal peak. Wincanton has also announced it is taking over a major part of Marshalls’ transport operations, after signing a five-year outsourcing deal with the building products manufacturer. Up to 300 staff will transfer from Marshalls and join Wincanton’s team of over 20,300 employees as part of the partnership, with a phased migration of Marshalls sites to Wincanton taking place in the coming months. Marshalls’ landscape products fleet will now be managed and operated by Wincanton, which will also manage Marshalls’ landscape products and brick and masonry subcontractors.
FH Aero Electric, FH Aero gas-powered and FH16 Aero. All will be easily identifiable, thanks to the prominent positioning of a larger Volvo Iron Mark. They will also feature the word ‘VOLVO’ spaced out on the front of the cab. Further features of the Aero include improvements to Volvo’s I-See technology, updated brakes with patented drag-free discs, and a new tyre monitoring service via Volvo Connect. Creature comforts have received a boost too, with an enhanced infotainment system, an improved sound system and a built-in navigation system. Drivers will also benefit from an integrated microwave and USB C power outlets.
RTX p6 Focus: regulation p8 Viewpoint p10 Tyres: retreads p12 Tyres: imports p16 Tyres: low rolling resistance p20 MT Awards p24
News
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Drivers face redundancies as EV Cargo cuts costs were on the cards. Both sites were formerly CM Downton facilities, before the company was acquired by EV Cargo for £75m in 2018. One driver told MT: “At Leeds we have averaged 50-plus drivers for years, but apparently they want to slash it to 18. Apparently 40
jobs to go at Runcorn too, out of around 100.” An EV Cargo spokesman told MT the group is working hard to avoid any redundancies and had succeeded in avoiding job cuts at other sites during the review by reallocating drivers.
Meat haulier loses licence after making adjustments to increase speed
Gwynedd Shipping in administration
Photo: Alexander Caminada
EV Cargo is looking at cutting up to 52 driver roles at its depots in Leeds and Runcorn, as part of a major cost-cutting review of the group’s fleet assets and operations across the company. The news follows reports from staff at both depots that job cuts
Haulier tampered with speed limiter By Chris Tindall
M&M Kerr, thought to be Scotland’s only haulier of hanging meat, has had its licence revoked after it altered the speed limiters of HGVs and compromised road safety. The former Scottish European haulier of the year, which holds an international operator licence authorising 20 lorries and 20 trailers, was found to have used software purchased for diagnostics to increase the fleet’s speed
up to 60mph. The haulier’s illegal activities only came to light when one of its trucks was involved in an accident and the DVSA found that the speed limiter had been adjusted. It was also identified that the driver, Craig Kerr, son of director and transport manager Michael Kerr, had driven for excessive periods without a card inserted and had also been relying on another driver’s card.
At an Edinburgh public inquiry, traffic commissioner Claire Gilmore heard how M&M Kerr’s lorries had been travelling for sustained periods in excess of the standard 56mph. DVSA evidence showed that although the increase was relatively small, when aggregated over many thousands of miles and multiple drivers it would give a significant advantage to the operator and posed a risk to road safety.
A number of loss-making contracts contributed to the demise of Anglesey-based logistics and shipping firm Gwynedd Shipping, according to the company’s joint administrators. The firm, which includes Gwynedd Transport, filed for administration last month, resulting in the closure of its sites in Holyhead, Deeside, Newport, Dublin, Belfast and Birkenhead. Over 100 staff are facing redundancy. The group, which was a Palletways member, has a fleet of 650-plus trailers and employed a total of 142 staff. A statement from Kroll Advisory said: “The businesses have faced financial challenges common in the transport and distribution sector, including certain lossmaking contracts.”
Evri wins Ann Summers contract
Photo: Daniel Graves
Royal Mail has been replaced by parcel delivery firm Evri on a multimillion pound delivery contract with lingerie and sex toy retailer Ann Summers, following a retendering process. Evri said it won the contract after impressing the retailer with its operational capacity, delivery options, sustainability initiatives and overall cost effectiveness. The deal sees Evri handle all of Ann Summers’ business-tocustomer parcels, including deliv-
ery pick-up, drop-off (PUDO) and returns. Customers will continue to be offered free delivery when spending over £40. The announcement follows news in September 2023 that Ann Summers had hit over £100m in turnover and was planning to open more stores across the UK. ■ Evri has also relocated its Tyneside depot to a larger site, just four miles from its original location, as part of a nationwide drive to grow its parcel volumes.
YOU’RE HIRED: Aldi is looking to recruit over 500 apprentices across the UK in 2024, including trainee HGV drivers and warehouse and logistics workers. The supermarket giant recently announced new rates of pay for all store and warehouse staff, with pay for some apprenticeship roles rising by up to 37%. Workers in logistics and driver roles can earn £10.96 and £14.13 per hour respectively. Successful applicants will have the chance to gain industry-recognised qualifications while they earn and will be eligible for a number of additional benefits, including shopping discounts, a bike-to-work scheme and a new mortgage advice option, giving free mortgage advice and access to mortgage education. The apprenticeship scheme forms part of Aldi’s nationwide expansion drive, which saw the supermarket create 6,000 new roles across the UK last year. 5.2.24
MotorTransport 3
News
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Casualties avoided as blaze destroys Owens’ Bridgend facility in minutes
Man arrested after warehouse fire A 25-year-old local man has been arrested on suspicion of arson with intent to endanger life, following a major fire that destroyed Owens Group’s Bridgend warehouse and a long-term customer’s stock within minutes. The building collapsed around seven minutes into the blaze, which devastated the entire facility. All staff were evacuated and there were no casualties. A South Wales Fire and Rescue Service spokesman said its crews “worked extremely hard in difficult conditions”. He went on to say that the blaze had been prevented from spreading to neighbouring businesses and that multiple “high-value items” were salvaged. Eyewitness Abby Bolter told the BBC she heard a “large bang” before the blaze, adding: “I heard people shouting and assumed it
Photo: Matthew Horwood
By Carol Millett
was fireworks, then I saw the fire… smoke was 200ft in the air.” The news comes only days after Owens Group reported that pre-tax profit had fallen by more than half in the 12 months to 30 June 2023, in what the company described as a year of consolidation after significant growth. Despite turnover rising to
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GXO UK Logistics saw pre-tax profit fall in 2022, despite “strong organic growth”, thanks to costs associated with its spin-off from XPO Group in 2021. Reporting its annual results for the main business for the year to 31 December 2022, the company disclosed a rise in revenue to £1,776.6m, up from £1,504m in the previous year. However, pre-tax profit fell to £45.9m, down from £65.5m in the same period. In its strategic report to the results, the company hailed the growth of the UK operation and new business wins, which it said had boosted revenue. It added that its fall in profit was mainly due to the gain of £11.5m that GXO recognised in the previous financial year, relating to the negative consideration at which it settled the acquisition of the majority of Kuehne+Nagel’s contract logistics operations in the UK.
ATL acquired by Hapag-Lloyd
Industry faces big driver wage increase Haulage bosses could be facing a £1.5bn increase in their staff wage bills within weeks once a nearly 10% rise in the government’s national living wage (NLW) kicks in, according to digital marketplace SNAP. Chancellor Jeremy Hunt announced the largest-ever cash increase last year, after accepting the recommendation from the Low Pay Commission. SNAP claimed the haulage industry was now facing a tipping point, with a lack of drivers to keep up with increased demand caused mainly by poor salaries. Average pay for HGV drivers in the UK is £15.47 per hour. SNAP said if this was increased to £17.28 in line with the NLW, then bosses would have to fork out an extra £1.5bn in wages.
£110.4m, up from £106.9m in the previous year, pre-tax profit slumped to £2.7m, down 53% (2022: £5.8m) in the period. The Pall-Ex member remained upbeat, stating that the directors are “delighted to report on another good year for the business, even with a more depressed trading environment”.
Profit down at GXO UK Logistics
German international shipping and container transportation giant Hapag-Lloyd is expanding into the UK logistics market with the acquisition of London Gateway-based logistics firm ATL Haulage Contractors (ATL). The private company, which also has a depot in Southampton, is already a logistics partner of HapagLloyd. Established in 2008, it operates a fleet of 200 trucks and 250 trailers, of which 100 are owned by dedicated subcontractors.
Under the deal, ATL will remain an independent company and brand and will continue to be run by the existing management team. Hapag-Lloyd operates a fleet of 64 modern ships and transports 11.8 million TEU a year. In its most recent financial results for the year to 31 December 2022, ATL reported a leap in revenue to £41.9m (2021: £28.8m) with pre-tax profit more than doubling to £2.6m (2021: £917,623) in the period.
Hundreds of HGV cargo thefts committed in January HGV cargo thieves have kicked off the new year with a spate of attacks across the country. According to the latest report from the freight arm of the National Vehicle Crime Intelligence Service (NaVCIS), the first month of the year saw at least 218 HGV cargo thefts committed. These crimes amount to an esti-
mated cost price loss of £5.1m, with the average cost price loss value per incident running at £23,578. NaVCIS warned that the gangs’ modus operandi is to slash curtainsiders and cut the padlocks and seals to steal pallets of goods from lorries at overnight parking locations. The report added that offenders
will use certain types of HGVs and LGVs to transport the stolen goods. As a result, police are stepping up roadside stops of those types of trucks and vans. The three vehicles most often used for cargo thefts, according to police reports, are 7.5-tonne and 18-tonne curtainsided lorries and Mercedes Sprinter vans. 5.2.24
Road Transport Expo This year’s show is looking better than ever, with the cream of the haulage sector in attendance
What’s in store for 2024? By Hayley Tayler
The award-winning Road Transport Expo (RTX) is back this summer, bringing you the latest vehicles, technology, services and knowledge to keep your fleet operation running smoothly. Now in its third successive year, RTX 2024 will take place at NAEC Stoneleigh in Warwickshire from 4-6 June, with a bumper number of exhibitors supporting the event. Visitors to the show will find all the well-known brand names you’d expect at a premium tradeshow, including every major truck OEM, in addition to innovative start-ups and independent familyrun businesses, all under one roof. You’ll also be able to drop in and attend any of the free Knowledge Zone sessions across the event, which will focus on key topics from safety and compliance through to fleet decarbonisation and future technology. Or if you fancy trying out some of the latest diesel and alternativefuelled trucks and vans at the event, then why not book yourself in for a free test drive (or passenger
ride if you prefer) over in the Ride & Drive Zone? There will also be a fabulous networking area created in the form of ‘The Inn on the Green’, which will provide a friendly, informal, sociable space for you to grab a drink in the British sunshine
MT EDITOR’S VIEWPOINT: STEVE HOBSON MT editor Steve Hobson gives his thoughts on what makes the show a good fit for readers. RTX: Why should MT readers attend RTX? SH: For fleet truck operators, RTX is the ideal opportunity to see all the latest developments in both diesel and electric vehicles in one place. Face-to-face events are the best way to see a number of suppliers in one day, making RTX an efficient use of time as well as a welcome social interaction away from the usual place of work. Matching alternative-fuelled vehicles to an operator’s unique circumstances as companies take the first steps toward net zero can be much easier when talking directly to the experts. Being able to see and touch these novel vehicles can give more confidence that they are real and usable alternatives to tried and trusted diesel and gas trucks.
and catch up with colleagues and customers. Visitors will be able to easily find out what’s happening at the show through a simple-to-use app or the official printed show guide. You’ll also be able to read up-to-theminute show news, announcements and stand activities in the brand-new daily RTX newspaper launching at the show this summer. Vic Bunby, divisional director at RTX organiser Road Transport Media, says: “The feedback has been fantastic from the 2023 event, which is why we were encouraged to create an even larger event for 2024. “We have booked more space at the venue this year, with an
additional show hall providing 4,000sq m more indoor space and an expanded outdoor area for large displays, both of which are filling up fast with leading exhibitors. “I am really looking forward to this year, and following customer and visitor research, I think the formula will be absolutely spot on.” ■ As always, RTX is free to attend for all visitors, so what are you waiting for? Secure your ticket today at roadtransportexpo.co.uk
RTX: What are you looking forward to? SH: RTX has already established itself as the meeting place for the road freight transport industry and it will be great to meet old friends and see some new faces. It will be fascinating to see if any OEMs hold back the launch of new products for the show, as we are often told that new battery technology is around the corner that will transform the performance of electric trucks. We should also not forget that diesel is going to be around for many years to come and I am looking forward to hearing more about Euro-7 and how OEMs are investing in meeting this latest emissions standard. 6 MotorTransport
5.2.24
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The visitor experience More than 8,500 people visited RTX last year, from a wide range of companies associated with the road transport sector, and 96% said they would most likely attend again in 2024. Around three-quarters (74%) were owners, directors and managers, and more than two-thirds had purchasing influence for their vehicle fleets, so the show is the ideal place to meet new business connections and engage with your peers. RTX has always been designed with the visitor experience at its core and pulls out all the stops to ensure the perfect blend of business opportunities and knowledge sharing, alongside a relaxed, unstuffy environment to meet with industry colleagues and suppliers. With an on-site farm shop, large Truck Stop canteen and new Inn on the Green, you’ll find plenty of catering outlets around the venue and welcoming exhibitor hospitality stands. So it’s not surprising that 84% of visitors last year rated the show’s atmosphere and buzz as excellent/good. Visitors can also take part in the insightful Knowledge Zone sessions that will take place across all three days of the show and feature industry experts, policy makers, leading trade associations and inspiring road transport operators. ■ If you have any ideas for topics you’d like to see discussed, please drop an email to RTX head of content Hayley Tayler at: hayley.tayler@roadtransport.com
WHO IS EXHIBITING? You can keep up-to-date with our exhibitor list at roadtransportexpo.co.uk. Exciting brands include: Aalco ■ Advanced KFS ■ Aftercare Response ■ Air-Seal Products ■ Allison Transmission ■ Alloy Bodies ■ Alloy Ramps ■ Amber Valley ■ Antares TDC ■ Approved Hydraulics ■ Aquarius IT ■ Ascott Insurance Brokers ■ Ashtree ■ Aspöck UK ■ Asset Alliance Group ■ AV Industrial ■ Bailey ■ BD Energy & Auto ■ Beldam Crossley ■ Bosch UK ■ BP ■ BPW ■ Brigade Electronics UK ■ BADGP ■ BSP Hydraulics ■ CameraMatics ■ CargoStop International ■ Carrier Transicold UK ■ Chereau SAS ■ CMG ■ Colson Trailers ■ Commercial Fuel Solutions ■ Continental Tyre Group ■ CVH - OMFB ■ DAF Trucks ■ Dawsongroup truck and trailer ■ Deflecto Europe ■ Dennison Trailers ■ Disc Lock Europe ■ DKV Mobility UK ■ Doctor Air Brake ■ Don-Bur ■ Double Coin ■ DT Spare Parts ■ Durite ■ Dynamon ■ Eminox ■ EM Rogers Truck Sales ■ Enterprise Flex-E-Rent ■ Envevo ■ EO Charging ■ Exeros Technologies ■ Feldbinder UK ■ Flagship Partners ■ Fleet Focus ■ Fleet Trak 365 ■ Fonix Telematics ■ Fontaine Fifth Wheel Europe ■ Ford ■ FORS ■ 5.2.24
Fronius ■ Fuel Active ■ Fuelmii ■ GB Tyres UK ■ GITI Tire ■ Greenox AdBlue Solutions ■ Gregorys Linings/Quicksilver Truck Liners ■ Hammar Maskin AB ■ Harris Maxus ■ Hatcher Components ■ HaulTech ■ Hazelton Mountford ■ Heliox ■ HGVC ■ Hiab ■ Hickleys ■ Hireco ■ Hope Technical Developments ■ HORPOL ■ HVS ■ Imexpart ■ Ingersoll Rand Transport Solutions ■ International Tyres ■ Interpump Fluid Solutions ■ ISN - Garage Assist ■ ISTOBAL ■ Isuzu Truck UK ■ Iveco ■ Jobmate ■ Jonesco ■ Jost (GB) ■ Keith Walking Floor ■ Krone ■ Knorr-Bremse ■ KUDA UK ■ Labcraft ■ LAP Electrical ■ Lawrence David ■ Lazer Lamps ■ Locks4vans ■ Lumag ■ Mackworth Vehicle Conversion Specialists ■ Maha UK ■ MAN Truck & Van ■ MARTINS ■ Meiller-Boweld ■ Meller UK ■ Mercedes-Benz Trucks ■ Merridale ■ Michelin Connected Fleet ■ Millbrook Business Finance ■ Motion Cleaning Machines ■ National Highways ■ NORD-LOCK Group ■ Northside Truck & Van ■ Noxdown ■ Nursan Trailers ■ Operator and Driver Support Services ■ Palfinger UK ■ Palletforce ■ Parksafe Group ■ PIB Insurance Brokers ■ Podfather ■ POMMIER ■ Premier Pits ■
Prometeon Tyre Group UK ■ Qargo Tech ■ Renault Trucks ■ Road Haulage Association ■ Road Skills Online ■ Road Tech Computer Systems ■ Roger Dyson ■ Rubbertech ■ Ryme Worldwide ■ SAF Holland UK ■ Sailun ■ Sany E-Trucks/ Putzmeister ■ Scania UK ■ Schaeffler AAM (UK) ■ Schmitz Cargobull UK ■ SDC Trailers ■ Sentinel Systems ■ SM UK ■ Smith Brothers ■ Societe Generale Equipment Finance ■ Soloplan ■ Specialist Trailer Hire ■ STAS Trailers ■ Tachosys ■ TCL Tanker Rental ■ Terberg DTS UK ■ Texa UK ■ The Driver Handbook ■ The Tool Connection ■ Thomas’s Group ■ Thompsons UK ■ TIA Wheels ■ TIP Group ■ Titan Trailers Industries ■ Tool Connection ■ Total Compliance ■ TotalKare ■ Towergate ■ Trailer Resources ■ Training 4 Tail Lifts ■ Transairvac ■ Translogik ■ Transporter Engineering ■ TRP Parts ■ Truck Door Windows ■ Truck Locator ■ TSO ■ Tube Gear ■ Vaculug ■ Van Hool ■ Versus UK ■ VL Test Systems ■ Volvo Trucks UK & Ireland ■ VPG Onboard Weighing ■ Warrell Richards ■ Weightlifter Bodies & PPG Fabrications ■ WG Tankers ■ Wilcomatic ■ Zenobe ■ ZF MotorTransport 7
Focus: regulation
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Taking steps to address drink and drug use can change behaviours and make a real difference
Photo: Stephen Barnes / Shutterstock
Promoting zero tolerance
As we start February, the excesses of the festive season are but a distant memory and many will breathe a sigh of relief that ‘dry January’ is over. Who invented it anyway? And why? Don’t they know January is the most miserable of months and hosts the saddest day of the year? Giving up smoking or drinking are high on the list of New Year’s resolutions so, as a compliant and exemplar operator, does that mean you can relax and not worry about doing random drug and alcohol testing until next December? Of course not! You might say “we haven’t caught anyone yet, or if we did we dismissed them straight away, so we can stop doing the tests until next December – right?” Wrong! How many drivers, forklift truck drivers and warehouse operatives (and managers and directors, come to think of it) have you seen with a stamp on their forehead saying “high functioning alcoholic – treat with caution” or “occasional recreational drug user – just at weekends”? You might also say “don’t be daft, we don’t employ people like that 8 MotorTransport
here. Our staff would never do that – they are such nice people.” But people who drink and take drugs occasionally are in fact just like you and I.
Year-round issue
In December 2023, Merseyside Police caught 15 drug drivers every day, which equates to 469 drug drivers that month. They also caught 191 drink drivers. And do you think it was the only time those people who were unlucky enough to be caught had had a drink or taken drugs? I think not. For the whole of 2023, Merseyside Police caught 2,730 drug drivers, proving that this is not a seasonal issue. Nationally, too, the figures are growing. Between 2014 and 2022, convictions for drink or drug driving increased by 40%. This figure continues to rise every year, as does the number of incidents caused by that alcohol or drug consumption. As a result, so do your insurance premiums. What to do? Never underestimate the power of random (not ‘for cause’) testing. People who know they are going to be tested
can and do change their behaviours. Actively promoting a culture of zero tolerance in your business will also make a difference. Of course, encouraging healthy lifestyles is all well and good but plenty of us choose chips over salad despite knowing salad is the healthier option. Putting up a few posters won’t cut it and nor will having a policy to tick a box. Doing something about it will reap rewards. There are many programmes available that your staff can attend, such as the oneday Allen Carr stop smoking and stop drinking courses.
In both my former career as a traffic commissioner and my current work as a consultant I have seen some horrific cases of death and serious injury caused by drink or drug drivers, and many near misses. So, like a puppy, random drug and alcohol testing is for life and not just for Christmas. Doing it all year will reduce the number of ‘accidents’ your staff have and proving you do it all year to your insurance company will reduce your premiums. n Beverley Bell CBE, director, Beverley Bell Consulting
It’s good to talk
Having an employee assistance programme in place – where staff can talk confidentially to trained counsellors who will help them reduce their alcohol consumption or drug use – can have a real impact on reducing the problem. Talking about these issues openly and not brushing them under the carpet gives others the confidence to do the same – and this is so often the first step to getting help. 5.2.24
Viewpoint
motortransport.co.uk
New year, same old story I
Tim Wallace Head of content Motor Transport
t’s ironic that neither Brexit nor Covid triggered the Armageddon of liquidations that some predicted, but sky-high costs and a drop in demand are now wreaking havoc across the industry. Peak season didn’t happen, the number of hauliers entering insolvency has risen by 173% in just two years and it’s feared more firms will soon go to the wall. But at least that might help the operators still standing. It’s the same old story, with low rates, high costs, delayed payments and intense competition all playing their part. Big hikes on equipment, maintenance, labour, premises, energy and finance might not be a major concern when demand exceeds supply and you can put your prices up. But when it’s the other way round it puts increased pressure on margins, especially if you’ve overexpanded in the better times.
Collaboration is key in this market but so too is consolidation, a prime example being the recent takeover of Wincanton by Ceva Logistics. Some are now predicting a period of mass consolidation, with no sign of an initiative that will set the industry on a platform for recovery. The big players will be circling and there may be good opportunities to be had later this year. Ultimately these will determine the market size and the fate of the SMEs. But the banks will determine who can raise the finance for new acquisitions, which for many will be very difficult. On the upside, let’s hope inflation continues to ease and interest rates reduce. Meanwhile, improved telematics will aid efficiency but it will require real focus to turn that into increased profitability.
Digitalisation and the concept of trust T Lyall Cresswell Founder and CEO Trustd
oday, transport and logistics is increasingly digital. When you consider digitalisation and trust in this industry, you might think about how service for the end customer has improved through live delivery updates or shipment tracking apps. This evolution is undoubtedly positive, but the development of such a vast and fragmented sector comes at a price, particularly when it comes to digitalisation of operations within the industry itself. Before digitalisation, relationships were built over time through word of mouth and in-person interactions. Businesses began to network, often subcontracting work to known associates until there were several degrees of separation between parties. The sense of accountability felt by known entities was still present, if slightly diluted. In 2024, transport and logistics has adapted to function successfully within the platform economy. This economic landscape is made up of digital marketplaces, where service providers allow organisations to interact and transact on a borderless scale. But where a large number of transactions now take place on applications, there’s a lack of transparency regarding who you’re actually contracting with. What does this lack of transparency mean for the logistics industry, which operates around the clock and across the globe? From freight forwarders and 3PLs to carriers and drivers, a single shipment might go through seven or eight different organisations, modes of transport and jurisdictions before reaching its delivery address. While this level of fragmentation presents huge business opportunities, it also means that many operators don’t
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actually know who they’re working with. Businesses can be left vulnerable to increasingly sophisticated forms of cargo fraud and skyrocketing rates of double brokering. Trustd has been developed with the need for businesses to restore visibility and minimise risk in mind. The platform enables every stakeholder in the transport ecosystem to become ‘Trustd verified’. These users create a shareable profile that contains the official status of their identity and business, as well as documents such as driving licence, operator licence and insurance certificates. Profiles are verified and validated via biometric ID and a range of external data sources to accurately match the individual with the business entity. With a Trustd profile, drivers, carriers and brokers have verified proof of their identity and business status, allowing shippers and 3PLs to build a network of trusted suppliers. Our platform delivers unprecedented levels of visibility to every entity in the supply chain, enabling reputable carriers to set themselves apart from bad actors. Not only does our technology make the shipment and processing of a load more efficient, but it also closes the loopholes that cargo criminals like fraudulent carriers can currently exploit. Ultimately, we’re taking the best-in-class practices that are already being used in the financial services industry, and applying them to businesses and individual verification in transport and logistics.
The newspaper for transport operators
To contact us, email: name.surname@roadtransport.com Editor Steve Hobson Head of content Tim Wallace Events and projects editor Hayley Tayler Group production manager Isabel Burton Display advertising 020 89122121 Classified and recruitment advertising 020 89122120 rtmclassified@roadtransport.com Commercial sales director Emma Tyrer 07872 468432 Divisional director Vic Bunby MT Awards Katy Moyle 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 RoadTransport@abacusemedia.zendesk.com 020 8955 7034 Motor Transport Subscriptions, Abacus, 107-111 Fleet Street, London EC4A 2AB Rates UK £156/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 © 2024 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 5.2.24
Tyres: retreads
CUTTING EMISSIONS: Goodyear believes retreads can improve sustainability and is actively promoting them to its customers
Into the groove
Retreads have come of age, with technological advances making them both a sustainable and cost-effective solution for haulage operators. Chris Tindall reports
I
n the drive to cut carbon emissions, HGV operators are discovering the considerable benefits offered by retreaded tyres. Recycled tyres also have a major role to play in reducing costs; a consideration perennially at the forefront of operators’ minds. “More and more companies are putting sustainability higher on their agendas, and this is leading to increased opportunities to show that retreading has a lot of benefits for fleets,” says Dan Edwards, plant manager at Bridgestone’s retread factory. “Fleets can save a significant amount of money and contribute to a sustainable society. For example, Bandag retreads contain up to 75% recycled and reused material, contributing to sustainability and the circular economy. 12 MotorTransport
“Reusing the worn casing as the main retread component creates a saving of up to 70 litres of oil, up to 32kg of rubber and 14kg of steel. “Bandag also significantly contributes to a decrease in tyre cost per kilometre for fleets, equivalent to an up to 30% reduction in cost compared with a new tyre,” he adds. “Retreaded tyres generate up to 80% fewer CO2 and greenhouse gas emissions than new tyres in production.” Bridgestone, which owns the Bandag and Bulldog retread brands, is making a significant upgrade to its plant in Bourne, Lincolnshire. This will enable it to increase production of hot-cure retreads, which are more popular in the UK than cold cure. Bridgestone’s range will be expanded, with 17 new products to be manufactured under the Bandag Hotread brand.
Promoting sustainability
Bridgestone believes that retreads account for around 24% of commercial vehicle tyres sold in the UK. In 2022, its Bulldog factory recycled 520 tonnes of rubber dust and 4,400 tonnes of scrap tyres, saving 4 million litres of oil, 2,000 tonnes of rubber and 900 tonnes of steel. According to Bridgestone, this cut CO2 emissions by almost 4,000 tonnes compared with the production of new tyres. According to Goodyear’s 2023 Sustainable Reality Survey, 42% of fleets are using retreaded tyres to reduce their environmental impact. Kate Norton, sales general manager at Goodyear Commercial, says: “We believe that Goodyear retreading will help drive further progress in overall fleets’ sustainability, that’s why we are promoting it actively among our customers. “Goodyear has a comprehensive range of retread tyres in the TreadMax range, which have the same casings, tread designs and components as the new tyres. The latest technologies are reserved to Goodyear new tyres 5.2.24
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dimensions and tyre-wall markings are similar to those of a brand-new tyre. “Retreads can be fitted to steer axles – we do so on some waste fleets. However, we need a consistent supply of used, first-life tyres to enter the cycle to provide casings for future retreads.” Goodyear’s Norton is more circumspect. “Steer axles generally experience higher loads and more severe conditions than other axles,” she says. “New tyres are often preferred for steer axles to ensure optimal performance.” Andrew French, Michelin’s business-to-business sales director, says its Remix tyres – designed to be used on drive and trailer axles – have a performance comparable to new. “The Remix tyres are an integral part of the design process for new Michelin products and feature the same architecture and industrial processes as our new tyres,” he says. “Whilst there are no specific requirements in The Road Vehicles (Construction and Use) Regulations in relation to the fitment of retreaded tyres, it is generally accepted in the UK and Ireland market that retreads should not be fitted to front steer axles.”
Choosing the right cure
COMPARABLE PERFORMANCE: Michelin’s Remix retreads feature the same architecture and industrial processes as its new tyres
but, of course, these casings will then cascade into the retreading process, giving full tyre life benefits to fleets.” Retread tyres have come a long way over the past decade. According to Tony Mailing, EMEA head of hot retread production at ContiLifeCycle, tyre building, skiving and adhesive spraying are no longer manual tasks. “At ContiLifeCycle’s plant in Ivybridge, our automated build cell robots demonstrate these technological advancements within retreading,” he says. “With robots contributing throughout the retreading process, tyres can be constructed and remanufactured much more efficiently.” Edwards says there has been progress in making retreads just as reliable as their brand-new counterparts. “There has been continued development of retread production equipment over the past decade, especially with an increased focus on automation,” he says. “A big focus has been on making retreads more efficiently, using less manpower and reducing energy consumption. “Increased development and usage of inspection processes such as shearography, nail-hole detection and inflation testing have resulted in quality retreads that are every bit as good as new tyres.”
ADVANCED TECH: ContiLifeCycle’s automated build cell robots have reduced the need for manual processes
Inclination lies at the heart of whether to choose hot- or cold-cure retreads too. This sector is characterised by the two alternative processes, and which one is adopted is largely dictated by where you are in the world. Mailing says there are strengths and weaknesses to both processes. “Operator preference tends to be for historical reasons, differing needs and demands – and environmental reasons. “Hot retreads are more popular in France and the UK, while Nordic countries favour cold retreading. Nevertheless, both are sustainable alternatives to a brandnew tyre and we believe both methods will continue to grow in popularity.” Brian Barron, Vaculug plant manager, says that these days either process is as good as the other. “In the past it was normal for a cold cure to use only premium tread material and hot cure to use a more price-focused tread material,” he says. “Today, the hot-cure building equipment is able to use the premium materials and the expectation of the market is for a close-to-new premium performance, so there is no particular gap between the two tyres’ performance.” Edwards says the choice comes down to customer preference. “Both technologies are proven to be reliable and give great performance,” he says. “In Europe the market is split roughly 50/50 between hot and cold, while in North America, the world’s largest retread market, cold makes up the vast majority. Both technologies are used in climates ranging from northern Scandinavia to the Sahara.” ➜ 14
As good as new
With this emphasis on quality and the deployment of technology designed to make the tyres as good as new ones, you might question why they’re not usually used on steer axles. The answer to this depends on who you ask. “Studies have shown that retreads are just as reliable as new tyres and can be fitted with full confidence in all applications,” says Edwards. Mailing agrees. “Retread tyres are indeed just as good as new tyres – it’s a highly regulated industry with safety and durability at its core,” he says. “Though every manufacturer is different, all will conform to the UN’s ECE Regulation 109, which ensures that the performance, 5.2.24
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Tyres: retreads
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Michelin says it has always considered the hot-cure process to be its preferred method, due to the needs of the UK market, but it has adopted both processes to support customer demand. “Cold retreads and, in particular, our [cold retread] Recamic brand is very popular in Europe,” adds French.
Cutting carbon
Tyre makers are keen to extol the sustainability benefits for haulage firms relying on retreads, but what are they doing to cut their own carbon emissions? “Reducing waste is always important,” responds Norton. “Goodyear has intensified the collaboration with local casing handling partners. This includes investment in state-of-the-art shearography inspection equipment for even more accurate non-destructive inspection – ultimately resulting in less scrapping and waste, contributing to successful data-based circular economy practices.” Goodyear’s work with local casing partners has meant it is optimising the end-to-end logistics, with casings inspected locally rather than being shipped for central inspection. “In 2022, Goodyear presented its demonstration truck tyre, which incorporates 63% sustainable-material content into its construction,” she says. “With 15 featured ingredients across 20 tyre components, this tyre exemplifies Goodyear’s focus on selecting more sustainable materials for its products.” Bandvulc says it is aiming for 100% carbon neutrality within 26 years. “By 2030, we aim to have 0% of Continental-controlled end-of-life tyres worldwide going to landfill and 100% renewing and recycling of our tyres by 2050, in line with our carbon neutrality target,” says Mailing. “From now until then, our ambitions and means of achieving them are at the core of everything we do.” Bridgestone is working to the same deadline, with a 50% reduction in CO2 emissions planned by 2030, compared to its 2019 level, and to be carbon neutral by 2050. “Retreading plays a critical role in improved resource productivity and reduced CO2 emissions, and this is why Bridgestone has been accelerating its efforts to promote the benefits of retreading to its customers,” says Edwards. “Retread also embodies Bridgestone’s E8 Commitment; a set of eight areas – energy, ecology, efficiency, extension,
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LABELLING Tyres sold on the UK market must have labels that include information about fuel consumption, wet grip and their noise classification but, for now at least, retreads are exempt. However, the European Tyre and Rim Technical Organisation has developed a proposal for a labelling scheme for retreaded commercial tyres, which is currently under discussion with the European Commission. Tyre companies generally support its introduction and say it would help customers make an informed purchasing choice, but there are caveats. “It’s an interesting topic, and one that’s naturally being discussed widely across the industry,” says ContiLifeCycle’s Mailing. “At the moment, we think it’s too early to really pass judgement on EU tyre labels and how and if it will impact our domestic sales. Of course, as it’s an EU directive, the UK isn’t obliged to adopt the policy at all – whether it does or not is out of our hands.” Bridgestone says it will wait for clarity around the proposed testing method and grading approach before commenting on the impact to its operations, but Edwards adds: “We believe in giving customers the information to allow them to make informed decisions and therefore we welcome the opportunity for our retreads to further demonstrate their advantages through labelling.” Questions have also been raised about who is going to pay for it all. “Maybe,” says Vaculug’s Barron when asked if he supports the idea. “But not if it adds a considerable testing cost burden on the producer. Testing for rolling resistance, wet grip and noise is not cheap and may be too onerous for a hot-cure producer. The cold-cure producers are hoping the material supplier will stand the cost of testing, but this is not so likely for the hot-cure producer. “Most commercial tyre users are not asking us for a label. A small number of customers have asked for the ratings – we have then been happy to share our test results with them and no label is needed.”
AMBITIOUS TARGETS: Bridgestone is aiming to be carbon neutral by 2050, with a 50% reduction in CO2 emissions by 2030
economy, emotion, ease and empowerment – which provide a compass and guide Bridgestone to do business in a sustainable way.” Michelin’s 2050 deadline includes increasing the sustainable raw materials content in all its products to 40% by 2030. French says: “Every Michelin industrial site has its own roadmap and indicators that are used to monitor and control water withdrawals, the amount of waste generated, the use of organic solvents, energy consumption and CO2 emissions. “All elements have individual action plans in place to ensure Michelin achieves its ambitions and plays its part from an environmental standpoint.” ■
5.2.24
Tyres: imports
False economy
Budget tyres may seem like a bargain, but what are the real costs? John Kendall examines the import market and how it has affected fleet tyre management
H
ow do you buy and manage tyres for your fleet? What is the most important factor – price, durability, ability to regroove and retread, whole-life cost or environmental considerations? Pre-Covid-19, the position was clear cut for many fleets, with three main options to choose from: buy premium tyres; operate on a pence-per-kilometre (PPK) basis, effectively renting your tyres from one of the premium tyre producers who would manage your tyres for you, taking advantage of remote tyre monitoring via telematics; or using regrooved and retreaded tyres where possible. Other options included going for a mid-range tyre at a lower price, but still with the ability to retread, or to buy budget tyres as cheaply as possible, without regard for issues such as noise, wet grip or rolling resistance and with no option to retread. The rise of budget, single-use tyres began about 10 years ago, with many of them coming from China. According to Graham Willson, chief executive of the British Tyre Manufacturers’ Association (BTMA), this
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led to a marked decline in the sale of retreaded tyres and the demise of several truck tyre factories in Europe, including in the UK. These developments sparked an investigation by the EU, which found that “Chinese manufacturers were receiving significant state subsidies and, in addition, were selling tyres for export at lower prices than into the Chinese market, a practice known as ‘dumping’,” says Willson. “Both of these practices are contrary to World Trade Organisation rules.” As a result, the EU imposed import tariffs on tyres from China, which in turn led to production being transferred to other countries in the Far East. Although that dealt with the issue of dumping, it clearly did not stop the flow of low-cost tyres into European and UK markets. “However, it should be noted that this relocated production does not benefit from competition-distorting state subsidies,” says Willson. “Furthermore, the application of tariffs demonstrated the EU’s determination to defend a level playing field for international trade. The UK has reiterated its commitment to this principle on many occasions post-Brexit. “Five years on from the introduction of tariffs, the UK and the EU are now both investigating whether to maintain, modify or repeal the current measures. Both investigations are expected to report towards the end of 2024.” Today, in a post-Covid-19 and post-Brexit world with the economy floundering, some operators may feel they have little choice but to buy cheaply to rein in expenditure.
Paying the price
STRONG BY DESIGN: The casing, rubber compounds, sidewalls and tread on Michelin’s X tyre range are engineered with additional strength to make them more durable
One company that has been affected by the tariff on Chinese tyres is Singapore-based Giti Tire. “We have factories in Indonesia and China, but we bring the majority of our tyres in from Indonesia now because of the anti-dumping tariff,” says Tony McHugh, TBR sales and marketing director UK. The company positions itself in the mid-range because it offers its own retreaded tyres through its Genesis brand and also has its Mercury fleet management system. “We have a responsibility for our own tyre casings in the market and we have our own fleet check tool to manage fleets,” says McHugh. “The budget companies don’t offer anything like that.”
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McHugh is no fan of the import tariffs. “I think the unfairness of the anti-dumping tariff is that it is based on every tyre that comes into the UK, whether it is a 17.5in or 22.5in, so it’s extremely harsh,” he says. McHugh’s problem is that both sizes attract the same tariff, making the 17.5in tyres expensive. As Willson points out, the effect has been to disperse tyre manufacture from China to other countries, mainly in Asia. McHugh concurs. “We have tyres coming in from markets all around the world now and different brands,” he says. “I’ve never seen so many different names coming in, from Vietnam and other markets that weren’t even involved in the European tyre market before. “The damage has been done to us with the tariff and other manufacturers have just gone elsewhere
SUSTAINABILITY FACTOR: Several components of premium tyres can be recycled in the retreading process
PEACE OF MIND: Like many premium tyre manufacturers, Hankook offers a warranty against the premature removal of its products from service
and are coming in under a different brand name from different parts of Asia. We still bring a lot of tyres in from China. Our fast-moving tyres all come from Indonesia.”
Levelling out
According to Guy Heywood, vice president, sales and marketing strategy for truck and bus at Hankook Tire Europe, the total for all tyre imports to Europe from China and other places is similar to the level in 2018. “The new European Tyre and Rubber Manufacturers Association (ETRMA) market is around 14 million tyres, and the imports represent around 8 million tyres at European level, so the whole market (excluding OE) is 22 million. Non-ETRMA imports represent 37% of the total market – this is a similar percentage to what ➜ 18
PENCE PER KILOMETRE: PROTECTING THE PREMIUM BRANDS? PPK contracts tend to be popular with larger fleets. Were they invented just to protect premium tyre makers? What do you need to look at when considering if it is the right solution for your fleet? “It is important that fleet operators understand the cost drivers behind the total cost of ownership,” says Continental’s Tony Stapleton. “PPK/fixed budget contracts should be driven by the customer’s preference in how they receive an invoice for the actual costs of the operation.” Andrew French at Michelin sees it as a “peace of mind” solution for fleet operators. “It’s mainly subject to having the capability to calculate the PPK and collect relevant mileage data in order to invoice accurately,” he says. There’s a reason why premium tyres are used in PPK contracts, reckons Guy Heywood at Hankook. “The majority of cost-per-kilometre contracts are using premium tyres in the UK, not to protect premium tyre brands, but to openly demonstrate the return on investment in premium rubber,” he says. “Premium tyres are used because to be cost competitive, the tyre fleet management operator of PPK must extract 100% of the value from the product with delivery of fleet management (pressure management, regrooving, retreading etc). “If done correctly, they can make a margin on the fleet management of tyres, ensuring the low PPK costs for the fleet. Remove the advantages offered by the premium tyre at the right price with low-cost [budget] tyre application and you reduce return on investment and increase resource costs – not a good option when managing PPK. “If it were cheaper to fit low-cost budget tyres, all PPK contractors would be fitting them. The reality is that professional tyre management companies have tested all options, and they choose to fit premium products because they are the lowest-cost option for them.” 5.2.24
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Tyres: imports
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we saw in 2018 when the import tariff was applied across the EU and the UK. “Before the tariff we saw a gradual erosion of the retread market across the whole of Europe and the UK. This led to many smaller independent retreaders closing their businesses. More recently we have seen a stabilisation in the retread market, albeit with some falls in recent years, but only by the same level as the new tyre market conditions. “We do see some impact on the lower-priced retread products and brands, and cold-cured markets are falling faster than hot-cured bead-to-bead retreads. We at Hankook are investing in our retread capacity and volumes across Europe, tripling the production capacity in the UK in the past two years.”
Retread revival
Heywood says that Hankook’s Alphatread hot-cured retread sales are more than 25% up compared with 2022. Bridgestone has also been investing in retreading recently. “Under the new Bandag Hotread name, Bridgestone’s retread solutions are among some of the most advanced in the UK, featuring 17 new products being manufactured at the Bourne-based Bulldog plant,” says David Alamzan, commercial business unit director. With environmental factors of increasing concern to both vehicle manufacturers and tyre producers, budget tyres that are not suitable for retreading raise sustainability issues. “A tyre policy based on low-cost single-life tyres will typically consume four times as many tyres as a policy based on premium tyres and retreading, and release more CO2 and tyre-wear particles,” says Willson. “Recent research reports that growing numbers of larger
INVESTING IN RETREADS: A multi-million-pound upgrade of Bridgestone’s Bulldog plant to expand retread production was recently completed
fleets are integrating sustainability issues in their business decisions. “However, it is increasingly clear that smaller fleets are not following this pattern. Why? As highlighted at the recent National Tyre Distributors Association annual conference, the industry suffers from a legacy of out-ofdate information handed down from one generation to the next. For example, past prejudices against retreading and low-rolling-resistance tyres are no longer founded.” End-of-life factors need to be considered where sustainability is concerned. If single-use tyres lead to a quadrupling of the number of tyres that need to be disposed of, who is taking responsibility for that? “Not all manufacturers of cheap Asian tyres provide any support or solutions to the UK industry to take care of their used tyres,” says Tony Stapleton, head of fleet sales at Continental Tyre Group UK & Ireland. “That leaves operators and waste solutions providers to clear up the waste. If, hypothetically, the retreading of tyres were to cease, the tyre disposal infrastructure in the UK would not be able to cope if all worn tyres in the UK needed to be scrapped.”
Damage protection
Tipper operators might just see the risk of damage as equal for premium and budget tyres. “I speak to tipper fleets,” says McHugh. “There is a view that drivers don’t look after tyres and they get destroyed.” It’s an argument that Andrew French, B2B sales director, UK/ROI at Michelin Tyre has heard too, but he believes that choosing budget tyres is a false economy. “Our X Multi and X Works ranges are designed to withstand cuts and impacts, because we have engineered the casing, rubber compounds, sidewalls and tread with additional strength to make them more durable,” he says. Michelin, among others, backs this with a guarantee against accidental damage before a tyre is 50% worn. Hankook says that claim rates for its damage guarantees across Europe for 2023 are lower than 0.05%. “My preference is proactive tyre management,” says Heywood, “ensuring the accidental damage rate is clear and visible – then manage the cost element which can very often be down a small percentage of the operational activity/tyre awareness training.” “When considering tyre policies,” says French, “I’m reminded of a comment made by a customer of ours many years ago, when he said ‘a cheap tyre is only cheap when you purchase it. If you have a problem, and it results in vehicle damage or a missed delivery, then it very quickly becomes an expensive tyre’.” ■ 18 MotorTransport
5.2.24
Tyres: low rolling resistance
Finding the right balance
The fuel savings offered by low rolling resistance tyres can come at the cost of mileage but, as Steve Banner discovers, it’s all about choosing the right tyre for the right job
L
ow rolling resistance tyres have come under fire in recent years. Critics assert that they do not deliver the fuel and CO2 savings claimed for them, and the savings they do deliver come at the expense of mileage. Nor are they likely to be beneficial in any way if a truck spends much of its working life inching around the M25 or stationary on the M42. Such criticisms are unfair, tyre makers contend. They argue low rolling resistance tyres can help cut bills significantly if they are fitted to trucks used on long-haul work involving mile after mile of motorway runs at steady speeds. What they are often talking about, though, is pan-European runs – and the vast majority of UK hauliers are not involved in that type of traffic. “I would estimate that no more than 1-2% of UK-based trucks are used on long-haul runs in Europe,” says Guy Heywood, vice president of sales, marketing and business strategy at Hankook Tire Europe. “The percentage could be even less than that post-Brexit due to the reduction in exports of goods to the EU.” Of far greater relevance to British hauliers, he contends, is what Hankook describes as a hybrid tyre. Its take on the concept was launched at the Road Transport Expo show in 2023 under the SMART Flex AL/DL51 banner. The idea is to provide a tyre that will offer at least some of the fuel savings that a low rolling resistance fitment can deliver in the right working environment, but without sacrificing mileage. At the same time it should be able to withstand the hammering delivered by Britain’s road network to the same degree as a tyre designed for regional applications. Roundabouts and constant acceleration and deceleration take their toll, as do the country’s crumbling highway surfaces. “Our hybrid product is designed to offer 20% more mileage than a pure long-haul tyre and 20% better fuel efficiency than a regional tyre,” Heywood
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says. “The tread pattern is designed to operate in both long-haul and all but the most severe regional applications,” he continues. “Furthermore, wet grip and traction are almost the same when the tyre is worn as they are when it is new.” Other tyre manufacturers are thinking along similar lines. Goodyear has developed Fuelmax Endurance to cater for operators handling a mixture of regional and longhaul traffic. “It bridges the divide,” says Goodyear’s sales general manager, commercial, UK and Ireland, Kate Norton. Giti Tire has developed the Combi Road range to fulfil the same role. “It gives you the best of both worlds,” says Tony McHugh, UK truck and bus sales and marketing director at Giti Tire.
Finding the right fit BEST OF BOTH: Giti Tire’s Tony McHugh says their Combi Road range offers fuel savings without compromising on mileage
Dedicated low rolling resistance tyres still have a role to play, however. In situations where they can be deployed effectively – running from Nottingham to Naples in southern Italy for example, a distance of almost 2,300km – then the fuel saving they can deliver may outweigh any mileage loss. Says Heywood: “Close to 30% of the fuel used in a vehicle is used to overcome the rolling resistance of the tyres, so a 10% reduction in rolling resistance can mean a 3% saving in fuel and CO2 emissions.” Adds McHugh: “Low rolling resistance tyres can give you a fuel saving of 5% to as much as 10% over long distances on straight roads.” It’s clear that low rolling resistance tyres can make a valuable contribution to cutting fuel consumption and CO2 emissions, but the tyres have to be matched to the fleet’s duty cycle. So says Steve Howat, UK general manager, technical services, at Continental. “It’s a case of looking at the needs of the business, and there are undoubtedly operators across the UK where low rolling resistance tyres are a great fit,” he observes. “These days many operators are very focused on sustainability rather than looking solely at price and mileage. “We’ve done extensive fuel trials with a large fleet gathering data over a year, which we’ve been able to reference against standard tyres,” he continues. “We found an overall fuel consumption reduction of around 2%, not in theory or on a proving ground, but in a proper working environment. “The operator was predominantly travelling long 5.2.24
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TYRE PRESSURE MONITORING SYSTEMS A tyre pressure monitoring system (TPMS) will be mandatory on all new trucks sold in the EU from July 2024. It will form part of the EU’s updated General Safety Regulations (GSR), which will encompass a number of other safety devices, including a blind spot information system. Compliance with GSR has been a requirement for all new trucks seeking type approval in Europe since July 2022. However, it may not be obligatory on newly registered vehicles from July onwards so far as England, Scotland and Wales are concerned, says MAN UK product manager Ashlea Awbery. “As we understand it, the situation is still under investigation in a post-Brexit world,” he observes. “However, it will be mandatory on all new trucks sold in Northern Ireland from July 2024 under the Northern Ireland Protocol. “It is also our understanding that it will have to be fitted to any new truck registered in Britain on or after that date that travels to an EU member state,” he adds. “The situation is unclear however, so we are seeking clarification.” While there may be a time lag, it would be surprising if GSR were not eventually implemented throughout the UK. None of this will be an issue for anybody who buys a new MAN, Awbery stresses. “We’ve made the GSR package standard,” he says. A number of fleets already specify TPMS on their trucks and trailers and it will be mandatory on new trailers in Europe from July. However, there is as yet no indication as to whether it will be obligatory in the UK (excluding Northern Ireland) from that date says Richard Owens, marketing manager and technical support specialist at Don-Bur. “We don’t know where we stand and it’s quite bizarre,” he remarks. “The fitting of tyre pressure monitoring systems is currently optional for new heavier vehicles sold in Britain,” says a DfT MULTIPLE MEASUREMENTS: MAN’s TPMS monitors tyre temperature as well as pressure
spokesman. “We are exploring the benefits and implications of making this and other new safety technologies mandatory. Any decision to make these systems mandatory will require consultation and new legislation.” There is also the question of whether a TPMS fitted to a trailer is always able to communicate with the TPMS fitted to the tractor unit. A protocol is in place which should enable this to happen – ISO 11992-1:2019 – but Owens is aware of instances where the trailer data has had to be shown on a separate in-cab display. Ensuring the sensors a TPMS relies on do not suffer damage is essential if the system is to function properly. “At MAN our sensors sit inside the wheel rim and monitor the tyre’s temperature as well as the pressure,” says Awbery. That means they are well protected. The alternative is to fit a sensor to the tyre’s pressure valve. That makes it more vulnerable to suffering harm; and it may disappear if a tyre has to be changed at the roadside.
distances and covering mostly motorway and dualcarriageway miles,” Howat adds. “It’s in these circumstances where low rolling resistance tyres excel.”
Factory fitting
Hauliers may find they end up with them whether they want them or not. “They’re coming as the default fitting on new trucks as a result of the Vecto regulations,” says Howat. “As a result, vehicle manufacturers want either A-label tyres, which are the most efficient low rolling resistance tyres you can have, or a minimum of a good B-label tyre,” he says. The European Commission’s Vecto regulations require truck makers to cut average emissions from their products by 15% by 2025, and by 30% by 2030, compared to a 2019 baseline. As a consequence, vehicles are being shod with low rolling resistance tyres when they leave the factory even when they are inappropriate, say tyre makers, as truck builders battle to hit the EC targets. ➜ 22 5.2.24
LOWERING COSTS: Continental’s Steve Howat believes low rolling resistance tyres can offer a 2% reduction in fuel consumption when used in the right circumstances
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have a brand-new highly rated premium tyre costing several hundred pounds fitted, only for a driver to accidentally bash it hard against a kerb on its first day out and destroy it. The labels classify truck tyres in terms of their rolling resistance, wet grip and external rolling noise. The latest versions also provide information on their performance in snowy and icy conditions, and the rolling resistance and wet grip classifications now have five rather than seven categories, from A at the top to E at the bottom. While McHugh’s point about the risk of accidental damage is a valid one, the data on labels nevertheless bears close scrutiny. As Heywood points out: “When it comes to rolling resistance, one label grading difference can mean a £5,000 difference in fuel costs a year if you’re running a 44-tonner covering 130,000km annually at an average 8.5mpg.” “If you move a fleet of 100 trucks from a C to a B label, so far as tyre rolling resistance is concerned, then you could find you are saving as much as approximately 100 tonnes of CO2 emissions a year and 40,000 litres of fuel,” says Norton.
Studying savings
“They are pushing tyre makers to design and deliver A-rated low rolling resistance tyres and the easiest way for manufacturers to do so is to reduce the original tread depth,” comments Heywood. “Less tread means less movement of the tread block which means less heat build-up in the tread and thus lower rolling resistance.” So fears among hauliers that mileage may be reduced as a consequence could be justified, he admits. “Bear in mind, though, that if you are travelling on straight roads at a steady speed then the impact on mileage shouldn’t be too bad,” says McHugh. Of course, that presupposes that the tyres are maintained at the correct pressure, he stresses.
Assessing suitability
Michelin’s UK business-to-business sales director, Andrew French, says that it is vital for tyre manufacturers and dealers to learn as much as they can about a transport company’s duty cycles before they recommend which tyres to fit. “You have to get the balance between mileage and rolling resistance right and we certainly wouldn’t put our X Line Energy low rolling resistance tyres into every operation,” he observes. “If they are suitable for a business though, then the business will see the benefit.” In order to assess tyre suitability, Michelin can make use of the tools available as part of its Michelin Connected Fleet programme. “We can put in all the data about the trucks, loads, routes and so on and work out what the right tyres are for the operation concerned, and the savings,” says French. Norton agrees that talking to hauliers about their trucks, the loads they carry and the routes they are on is essential when it comes to determining the tyres that are best suited to their activities. “You have to look at what they’re trying to achieve,” she observes. Tyre labels can give an indication of the performance of a tyre and some fleets will take them into account, but that is not true of all operators. “While one or two hauliers will look at a tyre’s label, the majority will look at the price,” says McHugh. He adds that operators are only too aware that they can 22 MotorTransport
THOROUGH ANALYSIS: A study conducted by Coventry University in partnership with Bridgestone found that significant fuel savings could be made by running a long-haul artic on Ecopia H002 tyres
A study conducted by Coventry University in partnership with Bridgestone concluded that a long-haul artic could garner an annual fuel cost saving of between £2,200 and £3,200 if it ran on Ecopia H002 tyres with an A-rating for rolling resistance. This assumed that the truck had hitherto been running on D-rated tyres. The study also suggested that artics on regional duty cycles could deliver a £1,300 to £1,900 yearly saving if they switched from D-rated tyres to Bridgestone Duravis R002 tyres. The latter are B-rated so far as steer and trailer fitments are concerned, and C-rated where fitted to drive axles. David Almazan, commercial business unit director for Bridgestone, says: “Remember that tyres themselves only account for 2-3% of the running cost of a truck, while fuel accounts for 30-35%.” He argues that the fuel savings that can be achieved by operators who opt for Ecopias where appropriate are such that the tyres in effect come free. “The reduction in fuel bills pays for the tyres,” he asserts. Almazan believes the fuel savings can also offset the price premium Ecopias attract. “They are typically 10% to 15% more than Duravis,” he says. They are not likely to last as long, either. “If you want reduced rolling resistance then you cannot expect to have increased mileage performance,” he says. ■
5.2.24
MT Awards 2023 winner profile Livery of the Year
Attention! I Pall-Ex Group wanted to make some noise about its commitment to the armed forces and certainly achieved that aim with a striking camouflage design
n 2022, Pall-Ex Group became the first pallet network to achieve the Employer Recognition Scheme (ERS) Gold Award from the Ministry of Defence – being one of just 18 logistics and transport companies in the UK to hold the accolade at this time. Supporting current and ex-armed forces personnel is a key focus for Pall-Ex, which is also a long-term partner with Combat Stress, the UK’s leading charity for veterans’ mental health. To shout about this success and demonstrate its ongoing commitment to the armed forces community, Pall-Ex decided to use “mobile billboards” to create a commemorative livery. The design would highlight the pallet network’s association with the Armed Forces Covenant to any veterans, reservists or cadets – further strengthening its dedication to achieving excellence through the forces-friendly policies on offer. An impactful camouflage design was agreed, incorporating both the Pall-Ex branding and the Armed Forces Covenant logo. The Pall-Ex livery, aptly named Poppy, was revealed at a special ceremony at the Reserve Forces and Cadet Association awards event, which took place at the National Memorial Arboretum ahead of Remembrance Sunday. A complementary design including the Fortec (part of the Pall-Ex Group) colours was also created and named Reggie. Pall-Ex is now working with its shareholder members and owned operations with an ambition to help them all achieve ERS accreditation. Once achieved, a bespoke camouflage livery will be created to incorporate their own brand colours.
Working together
Ellistown, Leicestershire-based Pall-Ex Group distributes thousands of consignments every day from its 160-plus network of shareholder members. 24 MotorTransport
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It employs more than 500 direct staff and is led by CEO Kevin Buchanan, following the management buyout of the business in October 2019 from late founder Hilary Devey CBE. The business is proud of its partnership with the armed forces and sees the importance of supporting ex-military and those currently serving, recognising the transferable skills, qualities and other values they bring to the business. This group of employees can range from reservists, veterans, army cadet force volunteers and even spouses or partners of those currently serving. Pall-Ex has created recruitment materials, such as advertisement and job packs, highlighting that the business is a welcoming environment to applicants with a military background, who may also meet the criteria for a guaranteed interview. “It is about two things really,” says Buchanan of the armed forces support, “trying to attract and retain good people and give them career paths, but also about being socially responsible to a group of people who’ve given a lot to the country.” Some shining examples of successful recruitment include a former military pilot who started his career with Pall-Ex as an HGV driver, before being put through additional qualifications by the business to step up to becoming a CPC-qualified trainer. Likewise, hub manager John Bisland was injured twice in combat in Afghanistan and has worked his way up from truck driving to a senior role. “That’s really rewarding to get to see,” says Buchanan. “People having that second life if they want. Here is an example of a guy who’s setting really high standards and actually people want to follow him, as there’s a level of respect there. Both from his skill set and also from his background.” Pall-Ex also ensures it provides enhanced support for those employees still serving in the armed forces as reservists or cadets, with an extra two weeks of annual leave given to them, alongside time off for people with partners going away for service before and after.
Charity focus
Last year Pall-Ex showed additional armed forces support by raising money for its chosen charity, Combat Stress, during its annual fundraising challenge, March in March. The individuals taking part in the challenge raised a total of £5,000, which was then doubled by Pall-Ex. The
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IN-HOUSE TALENT Pall-Ex Group has a dedicated in-house marketing team that supports both the core brand and individual network members. A company rising star, marketing assistant Jack Bedford, was given the challenge of designing the new livery only three months into his role at the business. “We knew we wanted to design something special,” says Bedford, “so we bounced some ideas around as a team looking at both the gold element [of the ERS logo] and the camo theme.” Fine-tuning the design in collaboration with the Armed Forces Covenant, Bedford was able to create the winning livery used today. He adds that the Pall-Ex Group is a supportive and creative environment to work in as a young marketeer and encourages other young people to consider logistics as a career. “I think it’s definitely something worth pursuing,” says Bedford. “It wasn’t something that I first considered when looking at marketing, as it isn’t widely promoted. But I saw the opportunity and I’ve enjoyed it ever since and have worked on lots of different things in the role.” Bedford is now part-way through studying for his CRM professional marketing qualification, supported by Pall-Ex. CEO Kevin Buchanan adds: “It’s great bringing people in to all parts of the operation and Jack’s testament to what you can achieve with young people’s imagination and enthusiasm. And when you trust them to do it, and create the right environment, they work incredibly hard for the business.” To continue to develop its staff and inspire new talent into the business, Pall-Ex has also created its own personal development programme for staff, called LEAP, which Buchanan says “is about basically everyone in the business having the opportunity to improve themselves”. As well as enabling employees to upskill in their roles to achieve higher pay or a more senior position, it also helps company managers to excel in their leadership roles. LEAP has been certified by the Chartered Management Institute due to its comprehensive, structured approach. “We’re massively proud of the certification,” adds Buchanan. “Because if you want people to come in, whether it be from the armed forces, or whether it be young people from college, you have got to give them the scope to grow in their career.”
company also donated a further £25,000 to Combat Stress as part of its 25th Anniversary celebration. Supporting charities and giving back to the local community are part of Pall-Ex Group’s core values. To co-ordinate the many activities taking place, the business has recently launched the Pall-Ex Group Charitable Foundation. One of the foundation’s primary initiatives is the continuation of the penny-a-pallet scheme, which started during the network’s first year of operation and has raised thousands of pounds each year for a range of causes. All members sign up to pledge a penny from every single pallet that passes through any of Pall-Ex Group’s main transhipment hubs to charity. With thousands passing through daily, this amounts to a significant sum. As part of its commitment to supporting charitable causes that matter most to its employees and members, the foundation also offers a unique platform where staff and network members can request donations for causes close to their hearts. Buchanan says of the initiative: “It’s an exciting new chapter in our journey to make a positive impact in the communities we serve. “Our commitment to social responsibility is now more structured, transparent, and efficient, ensuring that the funds we allocate go to excellent causes across the country.” ■ MotorTransport 25
MT Awards 2023 winner profile Team of the Year
At the heart of the business The finance team at Abbey Logistics is focused on more than just money, playing a pivotal role in boosting the reputation and profile of the business
REWARDING SUCCESS: The Abbey team led by finance director Matthew Male (holding trophy)
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bbey Logistics Group is a leading logistics service provider and one of the UK’s most recognised and respected road tanker transport brands. Operating throughout the UK and Europe, the company provides services to bulk liquid and powder customers across a wide variety of sectors. The company has an excellent and growing reputation in the plastics and polymers, minerals, animal feed, construction and warehousing sectors. Abbey’s finance team has an on-site involvement with additional responsibility in fleet, compliance, IT and payroll. It has been the engine to drive continuous improvement in business performance over the past four years and particularly the past 12 months. In August 2016, Abbey completed a management buy-out. Within six months, the company had won its largest-ever customer, British Sugar, acquired its biggest competitor, Armet Logistics, and introduced new members of the senior management team. Unfortunately, the pace of change proved to be too rapid. The business struggled to integrate the acquisition and new management over the following two years. Trading performance deteriorated and the business became loss making. The current finance team was assembled in 2019, with the recruitment of group finance director Matthew Male
and the repositioning of the head of finance Paul Jamieson. The team was then restructured with the addition of Lee Sharrock as finance planning and analysis manager and Rebecca Courtley as financial reporting manager. The reporting processes were significantly revised and improved, starting the journey towards generating much better financial analysis, reporting and control. Despite the disastrous impact of the Covid-19 pandemic on the UK economy in 2020, the finance team was strengthened further with the recruitment of Emma Thompson as head of purchase ledger, Liz Webster as head of sales ledger, Jason Burrell as credit controller and Sean Wenham as management accountant. All brought significant industry experience to the Abbey finance team. As Covid-19 began to recede in 2021, the global economy started to pick up, but that brought with it supplychain challenges and driver availability issues fuelled by Brexit and IR35. The finance team were able to analyse trends from weekly trading patterns and model possible solutions. As a result, drivers’ wages rose by 18% that year, ahead of the market, funded by a driver-wage levy on customers. Apprentices were recruited during the year as an investment for the future. The Russian invasion of Ukraine in 2022 brought with it higher fuel prices and uncertainty regarding supplies of various commodities, including sunflower oil. The year also brought management changes at Abbey, with Steve Granite moving from CEO to chairman and sales director Dave Coulson retiring after almost 30 years with the business. His role was filled by Dave Patten as group MD and Josette Saville as sales director. The finance team was alert to the short-term challenges in trading volumes and supported the management transition. Abbey’s finance team has a much broader remit than a traditional finance function, so it is not surprising that it has been core to getting business performance back on track and navigating the challenges as they arise for the business. It has contributed to business performance in several ways.
Management information
The team has redesigned the weekly and monthly reporting suite and controls and is constantly evolving the system to ensure that management information is accurate, meaningful and timely. This has brought several benefits to the business: 26 MotorTransport
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■ Enabling the right business decisions by identifying where margins are too low, when to walk away from lossmaking contracts and where excess cost and fleet resources can be taken out of specific areas; ■ Quickly understanding the impact of temporary issues such as driver availability and rising fuel prices and informing the business of the required action, such as driver wage increases, driver-wage levy and cost inflation; ■ Improving cash and working capital management, making Abbey a more robust and reliable supply-chain partner; ■ Supporting commercial growth by using a costing tool to help win new business, including consideration of specific mergers and acquisitions such as the sale of the company’s Liverpool wash bay and acquisition of Welch Hire.
No growth without innovation
A focus on investment in systems to continuously improve data quality and support future growth has led to: ■ The purchase of a ledger invoice payment system, bringing about improved efficiency for the processing team and improved cost accountability within operations; ■ A new fleet system giving better visibility over cost control and workshop efficiencies and providing a tool to reduce manageable costs such as parts and damage; ■ Investment in cyber-security software to protect the business; ■ A new compliance system and a redesign of the KPI reporting template to ensure that compliance is at the heart of everything Abbey does.
People are the most valuable asset
Abbey continually invests in people through its learning and development programme. Increased business partnering in 2022 has boosted effectiveness, leading to improved profitability and contributing to the company’s succession planning route. Through the business partnering focus, management accountants have been encouraged to spend time out on site, working closely with their operations colleagues to fine-tune financial performance. The finance team has also been working with the sales director to refine the commercial model, as well as with the new MD to explore strategic initiatives. Several team members are receiving support to acquire additional skills, with three apprentices working through their professional accounting qualifications.
Reducing costs through the STEPS initiative
The ‘Saving through efficient process system’ (STEPS) has enabled the finance team to contribute directly to improvements in EBITDA, through taking ownership of the procurement process to generate cost savings for the business. Examples of this include: ■ A fuel-tendering exercise undertaken in 2022, which cut costs by reducing five suppliers to three; ■ Tenders for AdBlue, tyres, parts and energy in 2022, resulting in appreciable cost savings; ■ Bringing servers and transport management system software in-house to improve service and reduce costs.
Stakeholders
The finance team’s achievements have not only improved financial performance but also boosted the reputation and profile of Abbey Logistics in the wider business 5.2.24
community. This can be measured in three ways: ■ A dramatically improved credit rating, raising confidence among customers and suppliers; ■ Environmental, social and governance (ESG) initiatives, which include installing motion sensor lighting at Abbey’s warehouse to reduce energy costs and trialling the use of hydrotreated vegetable oil (HVO) fuel in the fleet to reduce CO2 emissions; ■ Charitable efforts led by the finance team, including making donations to local food banks, hosting coffee mornings for Macmillan Cancer Support and raising funds for local hospices, hospitals and those affected by the war in Ukraine. The finance team will continue to be at the heart of the business in future, as it strives for increased revenue with greater profit. It will aim to be a successful business partner through continuing to invest in its people, learning and development, as well as investing in the right systems and technology to ensure that Abbey remains best in class. Judges said: “Abbey has demonstrated exceptional teamwork and an investment in young people. The finance team is at the heart of the operation and empowered to make decisions.” Abbey Logistics also collected the Operational Excellence Award in 2023 and CEO David Patten said: “The team here at Abbey Logistics were exceptionally proud to have received these two awards at this year’s MTAs in recognition of our hard work and dedicated staff to support our industry and valued customers. “It is always a pleasure to watch how our people, business, customer relationships, and processes all continue to grow and develop in our sector. As we look to the future, Abbey will continue our journey to be the best at what we do.” ■
TANKER TRANSPORT: Abbey Logistics provides services to bulk liquid and powder customers throughout the UK and Europe
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