Category: Fleet News

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

Why is there a shortage of lorry drivers?

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

Aging workforce

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

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

Physically and mentally demanding work

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

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

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

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

How do we solve the HGV driver shortage?

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

To attract new talent

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

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

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

To retain talent

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

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

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

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

What are the government doing to help the haulage industry?

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

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

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

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

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

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

The full letter can be read here.

Is the end of the HGV driver shortage in sight?

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

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

HGV fleet fuelling with Fuel Card Services

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

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

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

What are the current fuel prices?

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

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

Why are fuel prices still high?

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

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

Government decarbonisation package

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

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

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

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

Managing fleet fuel costs

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

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

My Transport Planner

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

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

Fuel Cards from Fuel Card Services

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

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

When costs rise, the businesses that are hardest hit are always those at the smaller end of the scale. SMEs, with fewer cash reserves to fall back on in times of need, are more vulnerable to fluctuations in the market – and must take all reasonable steps to protect their profitability.

For many small businesses, fuel is one of the most (if not the most) significant operating costs to contend with. So, it’s no surprise that the sky-high prices we have seen for petrol and diesel over the past year have put many fleet managers on edge. That’s why having a robust financial strategy is crucial to success, and factoring in supply chain disruptions, staff shortages, and fuel prices, is crucial for SME fleets.

For fleet managers looking to get ahead of the curve and implement an effective cash flow management strategy, the place to start is with comprehensive cashflow forecasting, both for the short and long term.

What is a cash flow forecast?

For fleet managers, a cash flow forecast is a simple excel document that maps out expected costs and revenues over time. Alternatively, cash flow forecasting software is available in market from external providers, however the essence of the forecast is the same; documenting all of fleet’s outgoings over a specific time.

The period of time you might choose to forecast for will depend on your circumstances and there can be many benefits to performing forecasting for both the long and short term.

During the lockdowns of 2020 and 2021, many business made the switch to short term forecasting as the landscape was changing so rapidly that any longer term predictions were highly unreliable. This same attitude can be taken if the focus of your cash flow forecasting is navigating the ongoing fuel market fluctuations.

Are fuel prices going to rise?

While prices have seen a gradual decline from their peak in July 2022, they remain high compared to pre-pandemic prices and are predicted to rise again later this year.

In recent news, Saudi Arabia, Iraq and several Gulf states announce their plans to cut output of crude oil by as much as 1 million barrels per day which will undoubtedly increase pressure on the fuel supply globally.

Creating a cash flow forecast that works for your fleet

Fleet cash flow forecasting will look different for every business, but there are three main considerations that you can shape your forecasting around:

1. Decide on your forecasting period

Gauging the scale of the role fuel plays in your fleet, then reconciling this with the current volatility of fuel prices in the current market should enable you to make a reasonable judgement around what an appropriate forecasting window could look like for your business.

For example, implementing a daily or weekly forecast could help you react quickly to any changes in market, however it may be quite resource intensive for small teams. Conversely, a more traditional monthly or quarterly forecast could give you a rough understanding of your predicted revenues, while enabling you to focus more on day-to-day tasks – and this may be appropriate for businesses that aren’t too dependent on the stability of specific overheads.

2. Estimate your fleet expenses and outgoings

This will include your fleet’s average mileage, maintenance, and servicing costs as well as the cost of any telematics services or programme subscriptions you use for fleet management. It’s crucial to use historical data as much as possible to keep these predictions realistic.

Beyond identifying all of your business’ costs, it’s worth factoring in your plan to reduce each of these costs – whether that involves renegotiating deals with suppliers, or looking for innovative products in market to reduce individual costs.

One strategy that could be useful in a longer term cash flow forecast is to practice pessimism; factoring for the worst case scenario in terms of fuel prices to help ensure that your revenues are protected.

3. Look at the fuel trends

While the crude oil market remains at times unpredictable, looking at the patterns in recent months and expert insight looking forward can help you to get an idea of when price increases could be expected and what sort of increases we might see.

Whilst you might not be able to forecast with a high level of certainty, rough estimates and a certain amount of tactical pessimism will help you to predict which periods of the year might require stricter cost management.

With this information, you can then consider in more detail what your costs might look like on a monthly/quarterly basis and how this will affect the profitability of your fleet operations. Adjusting operations and expenditure to balance costs in more expensive months is then easier to manage and less of a shock to cash flow.

Slash costs from day one

The information gathered from cashflow forecasting can help fleet managers of small fleets set up outgoings in such a way that the impact of fluctuations in the fuel market are dampened, setting businesses up to better weather the storm.

For measures that fleet managers can put in place as a foundational tool whatever the market outlook, there are a range of great tools that can help to streamline fleet management, cut administrative costs, and effectively monitor fleets to identify areas where consumption and safety can be improved.

At Fuel Card Services, we provide a range of fleet software and telematics including Tele-Gence, My Transport Planner, MyService.Expert and more. With the right combination of tools and a fuel card designed for small fleets, you can cut costs across the year, putting you in an even better position to handle anything the crude oil market throws your fleet’s direction.

Get in touch today to discuss our fleet management tools and the variety of fuel cards and charge cards available for SMEs.

Procurement looks different for every business, and for fleets it means the acquisition of vehicles and all the other services and parts required for the appropriate, safe, and legal operation of a fleet. Fleet procurement is the groundwork of a strong fleet, and it can be hard to know how to strategise to ensure an effective fleet procurement process.

Essential considerations in fleet procurement

Before diving in and picking up the keys for fleet vehicles, fleet managers should take the time to thoroughly consider all aspects of the fleet procurement process and have a detailed plan of what the fleet needs, from the vehicle to its maintenance and running costs post-acquisition.

What is the purpose of the fleet vehicles?

The first and most obvious thing to consider is what exactly you are procuring fleet vehicles for. It’s important that you understand the role that the vehicle/s will play in your business, for example are they company cars for staff travel, or are you acquiring fleet vehicles for last mile delivery purposes?

Another important thing to consider is how essential the fleet vehicles you will be procuring will be for your business. With the economic landscape businesses are operating regularly in a state of flux, so it is wise to consider whether fleet vehicles are the best investment for your business at this time.

What type of vehicle engine do you want/need?

Considering the type of journeys your fleet vehicles will be doing will make it easier to know what type of vehicle engine you want to choose.

Petrol vehicles are better for fleets taking more short journeys at lower speeds, making them a good choice for urban driving. Diesel is better suited to longer journeys though this fuel is more expensive. Hybrid and electric vehicles are more sustainable options and come with more tax savings though they might require infrastructure installation and offer lower mileage potential than combustion vehicles.

Common routes

Understanding the routes your fleet vehicles will be frequently traversing will guide your decision about what type of vehicle/s will be beneficial choices and what features would be useful too. Consider the types of roads, the common speed limits, access to garages and gas stations, whether the routes are rural or city-based, as these things will help you decide on the aforementioned engine types as well as other important features for the vehicles you procure.

Route planning is also essential to the efficiency of your fleet, so why not consider applying a route planning and optimising tool like My Transport Planner? This piece of pay-as-you-go software helps to organise fleet routes and ensure they are the most efficient routes available, helping to save on time, money and fuel.

Maximising fuel economy

For fleet procurement, fuel economy is one of the biggest factors that will determine the cost effectiveness of your fleet vehicles. Cutting costs is a priority for fleet managers, and keeping fuel economy in mind during fleet procurement is vital to cutting costs and increasing sustainability.

The fuel efficiency of different vehicle models is a great starting point when you begin consider what vehicles you might want to add to your fleet. Newer vehicles are more likely to benefit from features that increase fuel economy and efficient driving such as cruise control.

Driver tracking

While the vehicles that make up your fleet have a significant role to play in fuel economy, so do the individuals behind the wheel. Monitoring driver behaviour helps you to identify areas of improvement and where efficiency can be increased, as well as being a great tool to ensure safe operation of your fleet at all times. Consider what telematics and tracking services you might find beneficial to help increase fuel economy as well as driver safety as part of your fleet procurement plan.

Organising and managing maintenance and servicing

For fleet procurement, considering the upkeep of the vehicles you intend to add to your fleet is important for safety, legality and keeping costs down. It’s important that upkeep of your fleet vehicles is affordable and practical, and one way to help ensure this is with fleet tools like MyService.Expert, MyDriveSafe and Fleet Check.

These pieces of software can help you to organise servicing and maintenance schedules and bookings, can support safety checks and help with the general management of your fleet vehicles. Not only can they help save you time and money by increasing the efficiency of these processes but tools like MyService.Expert offer access to great rates to help further cut costs.

Funding and Taxing

Choosing how to fund your fleet procurement is a big part of your procurement strategy and will depend on your company size and finances as well as the type of fleet you are growing. Whether you are leaning more towards purchasing or leasing your fleet vehicles you can read more about these two options in our financial management guide for fleet operators.

Taxing your fleet vehicles is also important to ensure your fleet operates legally. If you aren’t familiar with company vehicle tax and fleet vehicle taxation you can read more in our company car tax guide. There are savings to be made when taxing electric vehicles which you can learn more about in our EV tax guide too.

Savings for your fleet with Fuel Card Services

With a thorough procurement strategy and having considered all necessary factors discussed here you can build a fleet that is curated to serve your business perfectly, and in the most cost effective manner possible.

Putting to use fleet software can help you to ensure the fleet you build runs smoothly and can help you to continue to save money and time, and the right fuel card or charge card can help you fuel your fleet and manage the admin with minimal hassle. Get in touch with our experts to learn more about the tools we offer to streamline your fleet management.

From the end of March 2023, a number of sites will be leaving the BP network across the UK. However, a handful of new BP sites are also set to open in the following weeks. Read on to find out more!

Which BP sites will be closing?

The following BP site closures will take place on March 31st 2023:

• Bedworth South | A444 Bedworth bypass, Nuneaton, Warwickshire CV10 7DA
• Casterton Hill | Great Casterton, Stamford, Lincolnshire, PE9 4DE
• Cromwell | Great North Road, Newark, Nottinghamshire, NG23 6JE
• Darrington | A1 Southbound, Pontefact, West Yorkshire, WF8 3HU
• Hopwood Park | Redditch Road, Birmingham, West Midlands, B48 7AU
• Lower Early | Chalfont Way, Reading, Berkshire, RG6 5HJ
• West Park Street | 22 West Park Street, Chatteris, Cambridgeshire, PE16 6AJ
• Kates Cabin | Great North Road, Peterborough, Cambridgeshire, PE7 3UD
• Muskham | North Road, Newark, Nottinghamshire, NG23 6HT
• Wyboston | A1 Southbound, Bedford, Bedfordshire, MK44 3AA
• Three Counties | Warrington Roundabout, Olney, Buckinghamshire, MK46 4JQ

If your preferred BP site is going to be affected by these closures, be sure to use our pump locator app to find your nearest alternative.

What BP sites will be opening?

The following BP bunker sites will be opening in the weeks following the above closures:

• Wittering | A1 Great North Road, Wittering, Cambridgeshire, PE8 6HA | Opening April 4th 2023
• Bloody Oaks | Great North Road, Tickencote, Lincolnshire, PE9 4AD | Opening April 11th 2023
• Vale | Cheltenham Road, Evesham, Worcestershire, WR11 7QP | Opening April 12th 2023
• Prizet South | A591 Helsington, Kendal, Cumbria, LA8 8AA | Opening date TBC

Finally, the following non-bunker site is also set to open on April 3rd 2023:

• Filleybrook | Newcastle Road, Stone, Staffordshire, ST15 0PT

Keep your fleet moving with a BP fuel card

Whatever the size of your business, we’ve got the perfect BP fuel card for you. With variable pricing options to meet your needs, access to an extensive nationwide network, and quality fuels, our team of fuel card experts can find a fuel card that’s right for you.

Get in touch today to find out more!