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Peter Shakespeare says: “We need helpful intervention not bad”

The chair of the Parliamentary Freight Transport Group has issued a press release, rubbishing a EU driven proposal to cut pollution by imposing a 60mph speed limit on the 32-mile stretch of the M1 between junctions 28 and 35a.

Rob Flello MP said the proposal was ‘deeply flawed and would cause far more damage than benefit’.

He said:  “I can’t see BMW drivers from Bonn having to observe a speed limit on the autobahn and yet Mr and Mrs Smith from Leicester will be forced to trundle up the M1 at 60mph.”

Flello spoke out after the Highways Agency (HA) launched a consultation on the scheme. The HA claims the existing 70mph limit is having ‘adverse effects on air quality’ and that cutting it would reduce emissions.

It also said the new limit would deliver ‘reduced congestion, increased capacity and improved journey time reliability’.

The agency said the restriction would apply from 7am to 7pm all week and was likely to remain for ‘several years’.

In a letter to the Government, Flello said: “The proposed speed restrictions will increase congestion on this critical route, increasing air pollution and harming both the regional and national economy.

“They also fail to take into account the development of new engine technology which is making both private and commercial vehicles cleaner and more efficient.”

The MP, who represents Stoke-on-Trent South, said ministers should instead meet commercial vehicle manufacturers and focus on cutting congestion.

His concerns, backed apparently by much of the transport industry, are shared by the RAC, which has warned that they could ‘pave the way for similar restrictions on other sections of motorway’.

Meanwhile in Scotland, legislators have finally seen the light and have approved a hard fought bid – principally driven by the RHA – to trial a 50mph speed limit for HGVs on the single carriageway sections of the A9 between Perth and Inverness. Evidence from a similar exercise in New Zealand, presented to the Scottish Government by the RHA, showed that the increase from 40mpg improved road safety and reduced emissions.

We all know that once the speed limit signs are turned on managed stretches of motorways, everything grinds to a halt as the snake like traffic flow adjusts its speed. Everyone then vies for position, changes lanes and generates more congestion. The extra and unnecessary exhaust fumes being pumped out become palpable. The answer to maximum engine efficiency and low emissions is optimal engine temperature, constant revolutions and driving in a low gear. This is only possible if traffic is free flowing and not all bunched up at the same speed. Rob Flello is spot on when he suggests our legislators go and speak to the truck manufacturers for a lesson on automotive engine technology. After all they have just spent £billions on achieving the highest emissions standards possible.

Not only is this 60mph proposal a knee jerk reaction, it is dangerous. Once the speed and environmental Nimbies get hold of this they will be calling for a blanket 60mpg limit on all motorways. And the frightening thing is significant numbers of the ill informed public and press will support it.

Personally I would like to see the speed limit on motorways raised to 80mph, along with a national increase to 50mph on single carriage A-roads for HGVs. If the Government wants to do something really effective to reduce emissions from traffic, it should re-introduce the scrappage scheme for old vehicles – this time to include HGVs – and as Rob Flello says, invest in the infrastructure so the traffic keeps moving.

RHA Benevolent Fund

Not many people realise that besides helping hauliers in membership, the Road Haulage Association also has a charity. The RHA Benevolent Fund was set up to help people who have fallen on hard times and need some financial assistance to make ends meet or to improve their quality of life. When applying for assistance, the main criteria of the fund is that the applicant has worked for a member or an ex-member of the RHA or that they are a dependant of someone who worked for a member or ex member. It is not just for drivers but any member of staff.

Over the last few years we have found that many people don’t even know that the fund exists. However we hope, through this article, to help raise the profile of the Benevolent Fund as more outside bodies apply for assistance than actual members helping employees or ex-employees.

Over many years we have helped people with medical related issues, carpets, school uniforms, electric powered vehicles, funeral expenses, council tax, utility bill arrears, home repairs and many other things.

We have helped a young lady who took part in last year’s London Paralympics. She attained a Bronze Medal for all her hard work. We have also helped a driver who in his mid-twenties was paralysed in a road accident. We helped adapt a van so he could work as a delivery driver.

In the last few weeks the fund has made its biggest award yet to help an ex haulier who has suffered a massive brain stem stroke; leaving him unable to use his legs, along with other major life changing conditions. We have funded widening doors, a hoist and other alterations at his home to make life easier for him and his family.

There are many more instances where this financial assistance has already made a difference and there will be many more to come. The fund depends almost entirely for its ability to show benevolence on generous financial support from members.  Every year many donate when they renew their membership and in a number of instances, a more substantial donation is gratefully received. Over the years this has amounted to many hundreds of thousands of pounds!

Other ways to help are from employees through a payroll giving scheme and from the “Centurions Scheme.”  Each “centurion” pays £100 membership a year and every month a draw takes place with a 1st Prize of £125, 2nd Prize of £75 and a 3rd Prize of £50. Every June the top prize is £500!

If anyone is interested and wants details of any of the above ways to donate to the RHA Benevolent Fund then please feel free to contact us at the office at Ingliston. You never know who will need help in the future.

If you know of someone who may benefit from some help, send an e mail to p.glancey@rha.uk.net or write for an application form to Road Haulage Association Benevolent Fund, Roadway House, The Rural Centre, Ingliston, Newbridge, EH28 8NZ.

We would be delighted to hear from you.

Positive end to the year

I am feeling very positive, as the end of another interesting and challenging year, rapidly approaches. And from what I hear, so are members.

The RHA is still tackling the ever-present challenges of keeping a lid of fuel duty, fairer regulation and enforcement and protecting compliant professional hauliers from the less diligent in our industry. And on a daily basis it continues to represent members’ interests as new issues come to the fore, both nationally and locally.

Thanks to a more buoyant economy members are now hopefully returning to a position, where they can start investing in their businesses again. If the results of recent press tests are born out in daily operation, Euro 6 is not the demon everyone feared it would be. Buy a new truck today and that is what will be delivered and it seems the manufacturers have developed a range of add-ons, which will help operators to be more profitable and compliant. Next year’s CV Show (29 April to 1 May) will help you make the best buying decision for your operation.

As I see it the biggest challenge we will face next year, and potentially over the next few years, are the Driver CPC five-year periodic training deadlines. From September 10th 2014, if your drivers are not in possession of a Driver Qualification card, and are stopped by the police or VOSA driving an LGV professionally, they are – with a few exceptions – breaking the law. And as the O Licence holder, you will be held responsible by the Traffic Commissioners for permitting them to do so.

After your O Licence, your drivers are your most prized assets and there is nowhere better to invest. After all what is the point of a nice contract and a fleet of shiny new Euro 6 trucks, if you don’t have anyone to drive them? Recent DSA figures show that there is still a long way to go, in terms of periodic training, to ensure the driver population is DCPC compliant by next September. If you need help RHA Training offers some excellent cost effective periodic training courses.  It is inevitable that the industry will lose some older drivers next year, so it vital that we retain and train the remainder.

And finally I would like to publically thank and congratulate the RHA’s director for Scotland and Northern Ireland, Phil Flanders, for a job well done.

Sadly Phil leaves the RHA at the end of this month after 15 year’s loyal service. Phil’s role differs from our other regional directors in that the director for Scotland & Northern Ireland has to contend with the differences in policy and legislation at the devolved governments of two countries and represents his members’ interests personally without the help of a large policy team. Phil has done sterling work on behalf of members and I was delighted that his efforts were recognised at the recent Scottish Transport News Rewards. In his spare time Phil is also passionate about the plight of Elephants in the Far East and has raised over £10,000 to help sanctuaries in Thailand. On behalf of staff and members, good luck and thank you.

Geoff Dunning

The Members’ Voice

One feature of the RHA that receives little – perhaps too little – attention is the large number of members who contribute to the work of the Association through its various committees, councils and our board of directors. There are hundreds of people representing members large and small from the length and breadth of the country, with dozens of RHA meetings being held every month. The ultimate governing body of the RHA is our board of directors, which is made up of three elected representatives from each of our four regional councils, plus the immediate past chairman, and meetings are attended by myself, plus the directors of finance, operations and policy in a non-voting capacity.

The board’s main role is the overall supervision of the executive team, with an understandable focus on the RHA’s finances; so a large proportion of the regular bi-monthly meetings are taken up by careful review of our management accounts. Latterly, the board has been considering the prospects for 2014 and in November it will approve our budget for next year. Another key aspect of the board’s work is the determination of policy in respect of the wide range of issues that confront this industry, such as the FORS scheme in London, fuel duty – including the issue of rebated fuel and the growing issue of cycle safety.

The RHA’s four councils are made up of elected members, plus nominees from our specialist groups and from our largest members. This ensures a good mix of individuals and interests, and results in enthusiastic and at times heated debate on a very wide range of subjects from local highway problems such as diversions caused by road works, to national matters including Her Majesty’s Revenue and Custom’s attitude towards tax free subsistence payments. The councils also monitor the work of the board, by reviewing and responding to the regular report that is produced after each board meeting. This process ensures that there is a two-way flow of information and comment between the board and the councils and, ultimately, to the members at large via Roadway. One important role for the councils is the approval of new member applications. It is often assumed that anyone can join RHA by simply paying the fee, but that is not the case. Every application is subject to the approval of the relevant council, with any company that is felt not to meet our standards being recommended to the board for rejection.

Then we have the various specialist group committees, which meet at whatever frequency suits their needs. Clearly, these meetings focus specifically on issues relevant to their activities, from car transport to waste, and each meeting provides an excellent forum for the detailed level of discussion that these, often technical, matters require. Most recently the Transport, Distribution and Warehousing Group has been particularly active, developing a programme of activities that appeals to members with this type of operation. I urge members to take a look at the different options that are available and to take advantage of the information and guidance that is provided on several specialised operations.

Geoff Dunning

The CV Show: see us on stand 4F30

The 2013 Commercial Vehicle Show will be taking place just a few days after this edition of ROADWAY is delivered to members and I hope we will see a large number of visitors at the show itself and on our stand – 4F30.

The RHA’s over-riding objective is to help its members to be profitable, compliant and sustainable and you will be able to find out everything you need to know about this at the show.

In each of the three main strands of RHA activity – our trade association, our commercial services and our lobbying and campaigning – you will find support for your business and assistance to help make you profitable, compliant and sustainable.

There is not enough space in this short column to explain the many ways we can help, but I can briefly outline some of the main areas covered by the trade association fee that you pay.

Getting the right rate for the job is difficult at the best of times, so knowing what is profitable and what is not allows you to make the right decision when it comes to some of the more ridiculous rates on offer. RHA Cost Tables help you to do that. A fundamental element of your costs is your fuel spend and knowing what you are paying is vital. Our weekly fuel price survey helps you to do that. Staying on the right side of VOSA is a complex task these days, with wide-ranging legislation affecting every aspect of your operation, so up-to-date easy-to-understand explanations of the legal requirements is a must-have for your business. ROADWAY, our Helpdesk and our area managers help you to do that. Saving fuel is a must for every operator but reducing your carbon footprint might not be a high priority – that depends to a large extent on the demands of your customers. Our specialist technical manager can help you to do that.

Whatever you are trying to do, be it making a profit, staying compliant or demonstrating a responsible position in respect of sustainability, there are ways that the RHA can help you. Some activities are included in your membership fee and there are a few examples above. Some are commercial services, such as training, tachograph analysis, O-Licence audits or contracts of employment, each designed to offer a quality product at a competitive price. And our lobbying and campaigning covers areas intended to contribute to a level playing field, including our action in respect of insolvent companies which undercut those who seek to make a profit.

One way or another, the RHA is helping you to make a profit, to comply with the various rules that apply to the industry and to support you in contributing to reducing the impact of climate change. There has never been a better time to be a member of the RHA. Come along to stand 4F30 at the CV Show to find out more.

 

Geoff Dunning
Chief Executive

Profitability, compliance, sustainability

 

The RHA’s Board of Directors recently confirmed a new five-year strategy for the Association. We will focus on three priorities for the industry: profitability, compliance and sustainability – and we make no apology for putting profit first.

We know that our members are in business to make a profit, and we will be working very hard during 2013 to support companies in that aim. As part of that work, our Board recently decided to cancel the membership of any business that reaches a formal agreement with its creditors and to look extremely closely at their trading patterns in the months or even years prior to the agreement before accepting any application to have the membership re-instated. The issue of ‘phoenix’ companies has long been a thorn in the side of the industry, and that is why the RHA will be discussing the performance of directors of insolvent companies with the Senior Traffic Commissioner as the year develops.

Compliance remains a key issue, and the UK should be rightly proud of the generally good safety record that British-operated trucks have demonstrated over the years. Our view is very simple: as long as there are those who deliberately or repeatedly flout the law, the attention of the enforcer (VOSA) and the regulator (the Traffic Commissioners) should be focussed on the non-compliant, leaving those operators who put a great deal of effort into getting it right to go about their business without being distracted. Needless to say, our industry and our operations are technically complex, so occasional contraventions may occur, but it should not be difficult for a reputable firm to demonstrate simply and quickly a culture of compliance that will be acceptable to both VOSA and the TCs.

Sustainability is high on the government’s agenda and therefore is important to the industry, but we have a good track record of managing carbon dioxide output – even though we talk in terms of fuel consumption. Our priority for 2013 is to show the legislators this is our way of tackling the issue, even if it doesn’t fit with their language.

I hope that everyone has the dates 10-12 April in their diaries for a trip to the Commercial Vehicle Show at the NEC in Birmingham. An excellent event is expected, with wide-ranging representation from all aspects of the industry and, at the time of writing, we have over 350 exhibitors who have taken space.

The Euro 5 versus Euro 6 argument will no doubt be high on many people’s agenda; and operators will be deep in conversation with manufacturers about lead times, fuel consumption and, of course, prices. We are also delighted to see trailer manufacturers well represented at this year’s show and there is bound to be interest in progress with the longer semi-trailer trial. Last year’s show saw a few of the first examples, so this year we will be able to compare notes and experience.

 

Geoff Dunning
Chief Executive

 

If it doesn’t pay, walk way!

In the November edition of ROADWAY I highlighted the dangers associated with the very low haulage rates currently, and regularly, being offered in the UK.

I recently attended the first Commercial Vehicle Forum. Organised by the CV Show Partnership, much of the debate focussed on unsustainable haulage rates and one statistic stuck in everyone’s minds. Motor Transport’s latest analysis (July 2012) showed that the average ratio of profit to turnover in the top 100 UK haulage companies is down to a frightening 1%. Two panel members – Wincanton and ABE Ledbury – confirmed that getting customers to pay sustainable haulage rates was a real problem for both large and small hauliers.

Long-term RHA member and author of the RHA Cost Tables, Brian Fish of DFF International, says that obtaining higher rates is, without doubt, the most critical issue facing the haulage industry today. One of his, and my, biggest concerns is a culture of ‘one-rate-fits-all’ that has become the accepted norm and is used widely by operators when quoting for work. Brian says: “There is no such thing as a ‘fits all’ rate per mile. Rates should be calculated by determining: the time required (wages and overheads) covered by a standard cost per hour; the distance covered at a standard cost per mile (fuel, tyres, R&M and lubricants); any job-specific costs, such as subsistence and tolls; plus a margin of profit.

“These costs mix together in infinitely varying proportions, leading to rates per mile which depend on miles covered in a given period of time.” (See table)

I am fully aware that the gulf between calculating sustainable rates and actually getting the customer to pay is often massive. In France, following tariff deregulation in 1987, the haulage industry went into meltdown as the drivers’ unions took action over working time and pay. The deregulation led to excessive internal competition, which squeezed haulage rates and pay. So is there a place for a national minimum haulage rate in the UK?

To get rates back up to sustainable levels – and we must do before more haulage businesses go to the wall – something has to change. I believe the industry must adopt a common approach when calculating and agreeing rates. At the Commercial Vehicle Forum, Andy Boyle (AEB Ledbury) said on the subject of rates: “Dare I say, maybe the time has come to adopt the mantra of if it doesn’t pay…walk away!” Now that is a challenge if ever I heard one. But if you all did it, the buyers of haulage would soon get the message.

The motorway and trunk road network provides the haulage industry’s delivery and collection routes and the efficient operation of that network is essential to the industry. However, it is plagued by delays and disruption, as every morning’s traffic news demonstrates. Each morning there is a list of traffic jams caused by accidents, roadworks, adverse weather or simply the number of vehicles that use the road. In fact, there are many locations where congestion is such a fact of life that it doesn’t even merit a mention on the bulletins.

We all know there isn’t enough cash available to build roads which can cope with the peaks we see across the country but there are dozens, probably hundreds, of places where relatively modest investment could bring dividends in the shape of reduced jams and delays. To name a few: the M6/M1/A14 junction has caused massive delays for years and only recently has the government re-issued proposals to improve this junction; the A43/M40 junction is laid out in such a way that delays are inevitable, forcing the northbound and southbound A43 flows generated by the M40 to cross. This is madness, but there are no plans to improve it.

I am sure members have their own ‘hit list’ of locations which are crying out for improvement, so the government’s apparent intention to publish a consultation document soon on what the network should look like and how it will be funded is welcome. But I’m not holding my breath.

Geoff  Dunning
Chief Executive

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Roadway November 2012

On the first page of November’s ROADWAY operator profile (pages 46 – 49) our intrepid reporter, Bob Tuck, assures readers that the magazine isn’t getting on its soapbox about the green agenda.

Talking about one of the key drivers behind the success of a Bootle-based bulk tanker operator he says: “Terms like ‘reducing our carbon footprint’ have come more into vogue and, while initially they may have been mooted by the politically correct ‘global warming’ fraternity, the idea is something the logistics world should not only adopt, but also champion.

“This isn’t ROADWAY getting on its high horse but simply an echo of the beliefs of Steve Granite, MD of Merseyside-based Abbey Logistics Group.” Granite goes on say: “If you are more environmentally friendly, then you are more cost effective. Cut out waste and you cut down on cost.”

Very wise words I hope you will agree. I didn’t intend to make this edition of the magazine all about reducing: the amount of energy we consume; the amount of pollutants we produce and the number of empty miles we run. But as you read our reports about: The IAA Commercial Vehicle Show; the road test of Daf’s XF105 460 ATe 40 tonner; the Abbey Logistics Group profile; the Clayton/Don-Bur twin cargo semi-trailer and Michelin’s latest tyre offering, you should begin to realise that our industry has gone green.

If you missed that particular boat, I suggest you get paddling and catch it up quickly, because if you don’t you will not be able to compete in the brave new world of road transport and logistics. Thinking back to Bob Tuck’s thoughts about ROADWAY and soapboxes…he was wrong. We are on one.

But ‘Going Green’ isn’t just about climate change or stopping the Maldives from disappearing beneath the waves. These considerations are none the less important – I don’t want to loose my favourite holiday destination – but what ‘Green’ means to you is using fewer resources, working more efficiently and ultimately spending less to achieve more. And that equals remaining competitive, generating bigger profit margins, growth and securing your future. Things many hauliers have been struggling to do over recent years. Yes lobbying for a fairer deal from government also has its place, but the clever time and money is being invested in the new technologies, which can help hauliers and logistics companies – not just in the UK, but also across the globe – tackle the biggest challenge…spiralling fuel costs.

But as ever there is a spanner in our works. And it isn’t the obvious one. It is the UK’s Annual Investment Allowance, or AIA. Reduced from £100,000 to £25,000 in April, Jack Semple expertly points out (on pages 26 and 28) that small to medium sized enterprises (SMEs) in our sector have dramatically reduced the amounts of capital they are willing to invest in their companies. For example, rather than buying new ‘Green’ fuel-efficient trucks they are renting to cover shortfalls or to avoid replacing fleet. This in turn means fewer older trucks are being taken off the roads and the expected pull forward of Euro 5 truck orders prior to the Euro 6 implementation in December 2013 has not happened…yet. And unless SME hauliers can change their approach they could miss the boat while the rest of Europe grabs all the production slots.

The RHA is calling for the government to do something to stimulate the SME sector and help it invest in its future.

Returning to the theme of ‘Going Green’ it is in this area where the investments should be made. SMEs are the backbone of this industry and the economy. If they miss that boat we are all in trouble.

Peter Shakespeare
RHA Publications

We must have ethical supply chains

This is not an easy column to write and many people might feel uncomfortable with the content. But there is an elephant in the room that the road freight sector ignores at its peril.

Everyone in the supply chain has a responsibility to ensure that loads are carried by operators who take their obligations seriously and they must understand that, should the worst case happen and a vehicle be involved in a fatal crash, the role of original consignor and every contractor in the chain will be investigated. How many organisations choose to turn a blind eye to the way that loads are carried in their name? How many organisations take the necessary steps to ensure that fully-compliant operators carry all the loads that are carried in their name?

The trade press has recently featured a number of items referring to comments from various quarters about very low haulage rates which are currently – and regularly – being offered. Through the RHA’s four councils around the country, I hear such reports at almost every meeting. This is an issue that is neither new nor surprising, but what it represents should concern every customer and every haulier in the country, large or small – RHA member or not. The fact is that the levels of some rates being offered mean that the work these relate to cannot be done legally if it constitutes the majority of work that an operator is doing.

We all know that jobs which are below cost are sometimes justified because they, at least, reduce the cost of re-locating a vehicle: operators have to make a judge-ment call about such work. The problem is that some operators appear to rely on this kind of work and are therefore running at below cost most, if not all, of the time. 

In such cases the operator is faced with the unpalatable choice of going bust or cutting corners by operating illegally and, regrettably, some choose the latter. This should of course be kept in proportion, and I am not suggesting for a second that such behaviour is commonplace – far from it.

The vast majority of operators in the industry make strenuous efforts to operate legally, but the fact is that a small minority
of operators who do cut corners deliberately put both road safety and the survival of other, reputable businesses at risk.

VOSA and the Traffic Commissioners have roles to play here: VOSA should be identifying the serially non-compliant and giving the Traffic Commissioners the evidence they need to take these people
out of the industry and the RHA will campaign for more effort to be devoted to such action. But customers must understand that compliant haulage has a price and the industry must also do all it can to put its own house in order. If it doesn’t pay, walk away.

Geoff  Dunning
Chief Executive

Staff skills levels: What do you expect?

Any company, large or small, relies heavily on its staff. Every employee can affect the performance of the business – its profitability and relations with customers in particular. So what do expect from your staff? Obviously, you will expect personal qualities such as honesty, punctuality and reliability, but what about skills?

Skills for Logistics (SfL) is going to try to answer this question through a number of groups which were launched in London recently. I have been invited to chair the Drivers’ Group, and a number of RHA members have already volunteered. I have also asked the Freight Transport Association and the Chartered Institute of Logistics and Transport to nominate people to help with this vital work.

The first meeting will take place on 4 October and we will welcome volunteers. If you are interested please contact Vicki Ball at SfL on: vicki.ball@skillsforlogistics.org

The work will also cover the full range of occupations within our sector with groups including warehousing, fleet management and international operations. Each group will be chaired by a different organisation in the industry. Again, please contact Vicki if you are interested in occupations other than drivers.

SfL has changed significantly in recent years, with government funding now being handed out on a project-by-project basis, as SfL – like all sector skills councils – is expected to be self-funded in future. You may have heard of some of the projects it is currently dealing with, such as the development of a Logistics Academy and a Logistics Guild.

The Academy is a unique partnership between logistics companies, government and other key stakeholders, including logistics training and skills development specialists. Being a one-stop-shop, service will be key to the Academy’s success by ensuring that employers can quickly find relevant training solutions to meet their business needs.

The Academy will help employers to develop solutions to address skills which are unique to the logistics industry, and will tackle many of the long-term problems the sector faces in maintaining a skilled workforce and continued business success. In addition, the national network of Academy Licensed Partners will provide high-quality, demand-led solutions that meet employers’ requirements.

The Logistics Guild will be launched shortly and is designed to attract, retain and develop new entrants, helping people to identify what sort of jobs require their skills, so they can map career development and help employers find the people they want for their businesses. Like all the projects that SfL has been commissioned to carry out recently, they are designed to be self-funding in future: driven by employers and delivering what employers want.

The RHA is indirectly involved in SfL’s work, as the majority of the organisation’s contact is directly with employers. For more information see: www.skillsforlogistics.org

Geoff  Dunning
Chief Executive

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