According to data provided by the Transport Exchange Group (TEG) via their road transport price index, haulage prices increased by 3.56% in April 2023. This occurred despite the falling cost of diesel. Year-on-year, these prices were down by 2%, although, as courier prices have gone up by 3.6%, meaning that the overall index shows a figure higher seen in April of 2022. 

TEG also stated that while diesel costs have come down significantly, crippling inflation combined with HGV driver shortages and supply chain issues have resulted in transport prices remaining stubbornly high.

UK’s Supply Chain Issues Costing £12 Billion a Year

The latest figures show that the UK economy has been losing a colossal £12 billion to supply chain issues, and CEO of Integra (a TEG Data Firm), Lyall Creswell, had this to say…

“Falling diesel prices are very welcome news for the industry. It reduces a day-to-day expense for everyone, making every mile cheaper. But it’s clear that there are more permanent problems affecting hauliers’ and couriers’ prices. 

One of those is the driver shortage, so it’s encouraging to see the government once again taking action to get new drivers on the road. Another issue altogether is supply chain costs. 

Streamlining operations through digital solutions can help greatly here, so I’d encourage any road freight transport company to build digital tools into everyday processes.”

“The TEG Index Usually Rises at This Time of Year” – Aricia 

Also speaking on the matter was Kirsten Tisdale, director of logistics and supply chain consultant firm Aricia, who added her take on things…

“The courier element has always gone up in April, but this year’s increase was the smallest” she said. The haulage element has also gone up in April but continues to be deflationary against last year – despite accusations of profiteering in this sector, this is the 11th month running for which spot rates have been lower year-on-year.”

So, while these figures paint a bleak picture for haulage companies trying to make ends meet, the news relates primarily to couriers. That said, anything that can be done to reduce costs across the board would be warmly welcomed. 

Helping Firms Reduce Costs With Industry-Leading HGV Training

A lot is happening right now in the UK’s haulage industry, as the government, along with leading industry bodies and trainers like ourselves seek to provide stability back to the sector. Costs will likely fluctuate as we move to EV trucks, so it’s important to do whatever you can as a haulage business to protect yourself against these challenges. 

Needless to say, we’ll be monitoring things closely while continuing to offer industry-leading HGV training via our enormous national network of HGV driver training centres. Able to be scaled to meet any size of requirement, our training helps companies to minimise the impact of a lack of drivers and take control of their logistical needs. 

If you’d like to find out more about us and what make us different, take a look around our website or to get in touch, simply call 0330 818 8888 or click on ‘contact us‘ today. 

Plans were revealed last week that the UK government intends to avoid supply chain disruption by making a change to tanker laws. Under the proposal, fuel tankers would be allowed to carry extra fuel – something they’re not currently able to do due to the existing 44-tonne weight limit that’s in place.

At present, the majority of tankers on the UK’s roads operate with spare capacity, however, the current consultation seeks to permit tankers to operate to their full design train weight. 

A Potential 6% Increase in Supply Chain Fuel Efficiency

Rewind just 6 months, and the news was replete with panic buying at the fuel pump, petrol stations running dry, and climate activists targeting refineries – leading to an impact on fuel supplies. That said, the Department for Transport’s plan is said to potentially lead to a 6% increase in fuel efficiency across the supply chain. 

Speaking on the matter, Roads Minister Richard Holden had this to say:

“Thanks to the government’s bold measures to support the sector, our country now has now an even stronger haulage supply chain. We will continue to work with and listen to the sector to ensure our forecourts are always well stocked and motorists can fill up with confidence.”

At the heart of the consultation will be road safety, with any future increased fuel capacity allowance only applied to fuel tankers with suitable safety features, such as advanced emergency braking systems and vehicle stability functionality.

Other Considerations Need to Be Made 

This bold government move would also have ramifications for Britain’s road network, as the routes to be used would also have to be agreed upon prior to implementation. Specific road infrastructure needs to be available to accommodate fuel tankers operating at full capacity. 

The government also stated that a National Highways assessment of the proposals had indicated that any associated risks would be very small, with any potential risk of damage to infrastructure able to be effectively managed. 

This latest plan follows the 33 actions implemented to date by the government to protect the UK’s supply chain, with Skills Bootcamps and a £52.5 million investment in roadside facilities & lorry parking already underway. Anyone wanting to see the consultation – which closes on the 17th of May 2023 – should follow this link.

Working Hard to Support the UK Supply Chain

Much has been done over the last 18 months or so to help address the ongoing HGV driver shortage and support the operation of the UK supply chain. Whatever the outcome of the current consultation turns about to be, the Insite team is fully behind any measures to improve fuel efficiency, so long as safety standards are maintained. 

In the meantime, we’ll carry on doing what we’re known for – delivering industry-leading, scalable HGV licence acquisition programs via our extensive UK training centre network. If you’d like to know more about us and what makes us different, take a moment to browse the wealth of information to be found on our website.

Alternatively, to speak to us directly, either click ‘contact us‘ or call 0330 818 8888, and our team will be more than happy to explore your requirements.  

With inflation sitting in the region of 10%, it would be true to say that many people across the UK are feeling the pinch financially. However, according to a new YouGov (in partnership with logistics technology firm Stuart UK) survey of 2,000 business people and 2,100 other adults, there’s been a growing demand for delivery services in the United Kingdom in 2023.

This increase defies the ongoing cost of living crisis, and it’s coupled with a growing expectation for improved service levels and greener transportation methods. During the last three months of 2022, the survey revealed that 63% of businesses experienced increased demand for delivery services. 

Quicker Deliveries, Time Slots & Advanced Tracking

Looking closer at the survey’s findings, 2 out of every 5 respondents (38%) stated that they wanted quicker deliveries, with around a third (30%) saying that would look for more precise time slots for their deliveries. 1 in 4, however, expected advanced tracking to be offered by their delivery service provider.

When asked about the question of sustainability, almost ⅓ of business representatives stated that they believed their customers were keen to enjoy more sustainable delivery options. 

“Robust Demand From Retailers Set to Grow”

Speaking on the matter, John Gillian, Stuart UK’s general manager had this to say:

“2022 saw robust demand from retailers for delivery services, and that only looks set to grow in 2023. The challenge, however, is that businesses will have to step up to the plate to offer fast, sustainable and data-driven services, all against a backdrop of rising expectations of customer service.

As such, Stuart is proudly at the forefront of cutting-edge innovation in this space, working with businesses to provide customised and entirely sustainable delivery solutions to meet their customers’ needs.”

When you look at the 18-24 age group, you see that this demographic uses delivery services more than any other. What’s more, 24% of those asked in this group expressed an intention to order more products than they did during 2022. 

Moving forward through 2023 and beyond, it’s expected that these trends with continue. Should that come to pass, it will result in an even higher demand for fast, efficient delivery solutions than exists today. 

Meeting the Needs of the UK’s Buying Public

While customer spending trends are constantly fluctuating, it’s the job of the UK’s haulage industry to meet the needs of the buying public. If customers demand improved services during austere times like these, faster deliveries and order tracking, it’s down to the delivery companies to provide it. Those that don’t could easily end up being left behind. 

Whatever happens, however, the Insite team will carry on offering industry-leading HGV licence acquisition programs via our vast national training centre network. Our services can be scaled to any size of need, allowing businesses to find efficient solutions to combat the ongoing driver shortage in the UK. 

If you’d like to find out more about us and how we do things, take a look around our website or to get in touch, simply call 0330 818 8888 or click on ‘contact us’ today. 

While much debate has occurred over recent months about the move to cleaner fuels, plans by the government to turbocharge its adoption have been met with concern by industry body Logistics UK. This is because it claims that the government’s £400m cleaner fuels investment ignores exactly how the HGV industry can viably transition from fossil fuels. 

Described as a “robust package of measures” by the government, the investment is aimed at supporting the shift to electric vehicles with the allotted funds earmarked for the installation of 1000s of new charging points across the country. However, it’s being viewed by Logistics UK as a missed opportunity for the UK to be a leader in green innovation. 

“A Step in the right direction, however…” 

Kate Jennings, policy director at Logistics UK, expressed her disappointment at the lack of consideration of a plan for HGVs, stating: 

“The UK has the opportunity to be a leader in green innovation and investment, and this plan is a step in the right direction for parts of the UK’s logistics network. However, it remains vital that the government provides a delivery roadmap for commercial electric vehicle infrastructure, low-carbon fuels and rail electrification so businesses can invest in confidence.

For operators electrifying their fleet, the capital expenditure required for depot charging can be extortionately high, with some operators who are currently in the process of electrifying their van fleets reporting costs of over £1 million – which is often not commercially viable, especially if premises are leased.

“A Roadmap Is Needed For Electric Logistics Vehicles” 

Continuing to speak on the matter, Miss Jennings had this to say:

“The UK, therefore, needs a roadmap for electric logistics vehicles that includes a fair approach to funding electricity connections for depot charging. Public charge points must ensure sufficient space for logistics vehicles and fast charging points to enable operators to maximise the efficiency of fleets.”

Adding to the debate, Ken McKeikan, CEO of motorway services operator, Moto, expressed an urgent need for cross-government collaboration in order to deliver the planning reforms and infrastructure needed for the ultra-fast rollout of EV charging hubs. 

He said, “The promise of a speeded-up planning process to accelerate solar and offshore wind projects is tantalising but is missing the one thing we need most – pace. We need more power now. In seven years’ time, we expect EV charging in the UK will require twelve times more energy than we currently use today.

If this planning promise is delivered at the same slow pace as the previously announced Rapid Charging Fund back in 2020, its likely UK EV drivers will not have sufficient high-power chargers to cope with demand – urgent action is required now.”

Petrol to Electric – A Transition With a Tight Deadline

The transition from fossil fuels to electric vehicles is certain to be a challenging one for the UK’s HGV industry, and it would appear that there are issues still to iron out. However, with petrol trucks being phased out by the turn of the next decade, it would seem there is still a lot of work to do to ensure everything is ready by the proposed deadline. 

As ever, the Insite team will continue doing what it does best – offering industry-leading HGV licence acquisition programs via our national network of training centres. Able to meet any size and scale of need, we help companies circumnavigate the ongoing driver shortage and take control of their own transport needs. 

To find out more about us and how we work, take a look around our website or to get in touch, simply call 0330 818 8888 or click on ‘contact us’ today. 

Insite, along with workforce solutions group Manpower and trade body Logistics UK, has again been awarded the lead role on the Government’s extended Skills Bootcamps in HGV Driving. The scheme will train and place into work thousands more HGV drivers across England over the coming year. 

The HGV Skills Bootcamps are flexible courses of up to 16 weeks, giving people the opportunity to build up sector-specific skills. First launched in December 2021, the programme has been extended for a further 12 months until 31 March 2024. 

Helping both employers and individuals

We have been awarded a full extension of its original contract with the Department for Education (DfE), with scope for further expansion if capacity allows. This translates to training at least a further 2,160 individuals over the next 12 months and creating almost 2,000 new drivers in the logistics sector.

With cost being the major barrier to entry into HGV Driver training, the DfE funding offers a lifeline for both individual candidates and employers dealing with budget constraints given the cost-of-living crisis. 

Within the new contract, DAG will deliver 1,300 partially funded courses. These offer employers a 70% contribution to HGV driver training through the DfE funding. In addition, HGVC will deliver 860 fully funded courses, aimed at individual candidates. 

DAG’s 2023/24 programme will primarily focus on the novice training pathways, helping novice drivers gain their Category C (rigid lorry) licence, a Category C+E (articulated lorry) licence or helping those with a Category C licence upgrade to a Category C + E.

Over a thousand trained so far 

Since the launch of the Skills Bootcamps in HGV Driving in December 2021, we have trained around 1,400 drivers. Some 1,070 trainees have now passed their practical test and are ready to drive. In addition, 535 drivers are now in jobs and a further 400 have secured interviews. 

662 of these are new drivers having now gained their HGV licence, while 457 are existing HGV drivers who have gained new skills. Qualified drivers are securing starting salaries of up to £40,000.

Our existing programme secured a record number of applications from women, ethnic minorities and younger people. The consortium received more than 10% of applications from female candidates, significantly more than the 1.5% of women who are HGV drivers in the UK currently. 

We also received nearly a quarter of its applications from Black, Asian, and other ethnic minority groups. Currently, just 4% of HGV drivers are from ethnically diverse backgrounds. In addition, approximately 30% of applicants were under the age of 36, a significant step forward when the average age of an HGV driver today is around 50.   

How to apply

The extended Skills Bootcamps in HGV Driving went live on 1 April 2023. Our scheme is open to any individual holding a driver’s license for over three years or businesses looking to upskill their existing staff.

The training courses are available at 60 locations across the country. 

Both candidates and businesses can apply at www.hgv.academy. 

James Clifford, CEO of Insite, said: “We’re immensely proud to have been re-appointed on this hugely significant scheme. This is a major acknowledgement of our success and the positive impact that the Skills Bootcamps have had to date in getting new HGV drivers behind the wheel. 

“Yet, while the immediate short-term driver shortage has abated, the long-term chronic shortage persists. As we’ve seen, thousands of people in the UK want to become lorry drivers. With further funding, we’re confident we can train even more people in the UK, close the longer-term shortfall of drivers and keep Britain moving. 

“Fully qualified drivers coming through the existing scheme are ready to go straight into roles. What’s more,  for employers re-considering training budgets, this is a huge opportunity to secure 70% of the funding to train up new drivers or existing staff. While the economy continues to face some major challenges, this scheme really is a lifeline for the UK’s logistics industry.”

According to the latest TEG Road Transport Price Index (TPI), the average haulage price-per-mile has dropped 3% month-on-month and 2% year-on-year – despite the cost of diesel rising 12% over the last 12 months. This comes in the face of meteoric inflation and operational cost increases during this period. 

At their lowest level since March of 2021, the figures paint a clear picture. However, haulage companies seem to still be holding back their prices. That said, with the Windsor Framework possibly heralding tighter collaboration between the EU and the UK, hauliers will be hoping for better profit margins in the coming months. 

Consumer Spending Focusing on Services 

When looking at courier prices over this period, they’ve risen by 10% year-on-year, although they did fall by 4% in February as consumer spending focused more on services, as opposed to material goods that require courier services. Research has also illustrated a growing demand for lower/zero-emissions vehicles as the sector readies itself for the transition. 

Truck manufacturers have already invested a significant sum in vehicles powered by hydrogen and electricity, with other technologies being brought to market. As such, the firms that can afford the initial cost of a ‘green’ fleet can look forward to major operational savings.

“The Future For Freight Still Looks Promising”

Speaking on the matter, the Transport Exchange Group chief executive Lyall Cresswell had an optimistic view of the haulage industry going forwards:

“A price drop in February is nothing new. We’ve seen exactly the same pattern in previous years, and we’d expect prices to rise gradually as we head into spring. However, this year is somewhat uncertain as the UK narrowly avoided a recession and inflation remains high.

Businesses are still scaling back, encouraging haulage and courier companies to keep their prices down, even as they contend with high costs, but the future for freight is still looking promising. There are huge opportunities for development in new technology and sustainability – opportunities that the industry must grab.”

Adding her own take on things, Kirsten Tisdale, Aricia Consultants’ director of logistics had this to say:

“Both elements of the TEG Road Transport Price Index continue to interest. The haulage element of the index still shows year-on-year deflation, which has been ongoing since June last year, despite significant rises in key operational costs. But the courier element carries on with inflation, which is now back into double figures.

Bearing that in mind, it’s no surprise to hear that the Bank of England might raise interest rates again later this month, as the overall TEG index comes back out of the Bank of England’s comfort zone.”

A Critical Time For the UK’s Haulage Industry

As we move towards the second quarter of 2023, the UK’s haulage industry continues to bear the pressure of a lack of drivers and rising costs. Will hauliers be forced to raise their prices in the future? That remains to be seen, but as ever, the Insite team will continue to offer industry-leading Insite licence acquisition programs via our national training centre network.

To find out more about us and what sets us apart from the competition, please take the time to browse our website where you’ll find lots of useful information. Alternatively, to speak to a member of our expert team, click ‘contact us‘ or call us on 0330 818 8888 and we’ll be more than happy to discuss your needs.