Wholesale Price Movements & Price Totem
Market & Supply 34
News
Certas Energy refuels on Anglesey
Staff from both Certas Energy and Roadking will be in attendance at the official opening
On Thursday 31st January, Certas Energy will be holding a ribbon-cutting ceremony to mark the official opening of its new bunker refuelling site at Holyhead in North Wales.
The bunker site, which is the island of Anglesey’s only dedicated HGV refuelling facility, is located alongside the existing RoadKing truck stop.
“We’re delighted the site is now open, and we’re looking forward to meeting customers at the launch event,” said Andrew Goodwin, Certas Energy’s national bunker manager. “The Holyhead site has been designed to meet the needs of the 400,000 lorries and trailers that pass through the port each year. The location of the refuelling bunker ensures that hauliers will no longer need to plan a detour to refuel before making their onward journeys.”
News
Labour’s lorry tax hike would damage UK economy
The Labour Party’s plans to impose a £12,096 a year lorry tax per truck would penalise British business, says The Freight Transport Association (FTA). The plans were mooted by Clive Lewis, a member of the Shadow Treasury team, last week and, according to FTA, are based on inaccurate information.
In his comments, Clive Lewis quotes research that claims HGVs currently only pay 11 per cent of their UK road infrastructure costs. But if you look closer at the figures, this is inaccurate. Christopher Snelling, Head of UK Policy at FTA, which represents more than 17,000 logistics businesses nationwide, explained: “FTA is appalled at this short-sighted policy and calls on Clive Lewis to reconsider any potential changes to lorry taxation. The claim that HGVs only pay 11 per cent of their UK road infrastructure costs is false – between the highest fuel duty of any major economy in the world, the HGV Road User Levy, VED and road tolls, HGVs in fact currently pay enough tax and charges to cover over 90% of the UK’s entire road maintenance budget.”
Total UK spending by all authorities on highway maintenance (including bridges, footpaths etc) was £4.7bn in the financial year 2015-16; tax take from HGVs alone covered almost 94 per cent of this cost.
Snelling continued: “Britain needs HGVs to deliver nearly four million tonnes of goods every day in order to function. Everything that makes operating a lorry more expensive makes Britain a less competitive place to do business and increases the cost of goods in the shops.”
He concluded: “There are smart ways to work to reduce the environmental footprint of HGVs and make logistics more efficient, that could benefit us all. Blunt tax hikes are the opposite of that and would change nothing while hurting the economy.”
Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. A champion and challenger, FTA speaks to Government with one voice on behalf of the whole sector, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers.
https://fta.co.uk
News
Essar – new roadside development
“This is another milestone in the development of Essar’s UK retail network,” said Ramsay Macdonald, head of retail at Essar
Essar has confirmed the first opening of a Morrisons Daily at one of its branded retail outlets at Moulsford in Oxfordshire, with several more planned to follow suit in 2019.
The station is one of 12 MPK sites recently unveiled under the Essar marque, following an agreement reached in November with the top independent garage group. Essar entered the UK retail market with the opening of its first branded forecourt in November 2015 at Coalville in Leicestershire, and now has a network of 67 sites.
“This is another milestone in the development of Essar’s UK retail network,” said Ramsay Macdonald, head of retail at Essar.
“With a vibrant modern and fresh brand, we believe we are ideally placed to showcase best in class ‘Roadside Retail’ and Morrisons Daily is certainly in that category. MPK are transforming their business and this is a huge vote of confidence that Essar can assist their development as a major convenience led business. The fantastic range of fresh and chilled foods to go means our customers can do a daily shop, or pick something up on their journey, while filling up at a competitive price.”
“Morrisons Daily operates across the UK, offering a wide range of fresh food and grocery items to our customers,” said Wayne Harrand, head of retail, MPK Garages.
“The new store will provide the local community with all of their daily shopping needs in one convenient location, coupled with the clean and fresh new Essar branding. We can see the Moulsford site going from strength to strength in the future.”https://www.essaroil.co.uk/
News
Suspected illicit fuel seized
Earlier this month more than 80,000 litres of suspected illicit fuel was seized following a three-day operation by HM Revenue and Customs (HMRC). Officers temporarily closed four petrol stations in Leeds, Motherwell, Cowdenbeath and Hillington for three days after discovering about 73,000 litres of fuel thought to be illegal.
Two vehicles were also seized in Loanhead, Midlothian, along with a further 7,000 litres of suspected illicit fuel. The estimated duty loss of all the seized fuel is about £56,000.
A 30-year-old man from the Crossmaglen area of County Armagh was arrested in Leeds and brought to Scotland for interview. He has been released pending further investigation.
The seizures and arrests follow a suspected fuel laundering plant in Northern Ireland which has been dismantled by HMRC officers. Two men were arrested and the plant is thought to have the potential to produce more than 10 million litres of illicit fuel every year.
Joe Hendry, assistant director, Fraud Investigation Service, HMRC, said: “Fuel laundering is unregulated and dangerous.
Illicit fuel is sold at reduced prices and motorists may think they are getting a good deal because it is cheaper. I would caution them to think again as the true cost is far from a bargain.
HMRC declined to identify the four sites where the fuel was seized.
https://www.gov.uk/government/organisations/hm-revenue-customs
News
Seeking the best drivers in the UK & Ireland
The 2019 OAMPS Hazardous Industries sponsored Driver of the Year and The QBE Insurance sponsored Depot of the Year competitions celebrate the best in the industry – last year’s driver of the year was Clifford Tappin of Lovell Fuels
As part of their annual awards celebrations, the Federation of Petroleum Suppliers (FPS) has started its search for the best tanker driver and fuel distribution depot.
To enter for the Driver and Depot of the Year awards your company must be an FPS member.
For the Driver of the Year Award, judges are looking for that driver who not only has an outstanding safety record but has gone that ‘extra mile’ for customers. Whilst, the winner of the coveted Depot of the Year prize will have to show that they are the leaders in their field, setting the highest of standards or making the biggest improvements in health and safety and other operating procedures.
Market Report
Portland Market Report | Jan 2019
Wholesale Price Movements & Price Totem
Wholesale Price Movements & Price Totem | Jan 2019
News
Mabanaft supports jet fuel supply resilience in the UK
Standing next to the new Mabanaft road loading rack at Oikos storage on Canvey Island are Mabanaft’s joint managing director, Martin Cook (r) and Toby Simmons, aviation manager
Mabanaft recently hosted an open day at the Oikos storage facility on Canvey Island to showcase their new road loading facility.
Oikos offers a deep-water jetty (Jetty 2) that can accommodate tankers up to 120,000 mts deadweight and access to the UKOP and CLH-PS pipelines – making the storage facility a strategic location for importing and distributing fuel to the south east, including Heathrow, Gatwick and Stansted.
Mabanaft’s exclusive new road loading rack is the first independent project of its kind on the Thames in the last 10 years. Dedicated to aviation fuel, the fully automated road loading rack can load a truck in under 20 minutes and is open 24/7 every day of the year, except Christmas Day. Roscommon Way, the recently constructed access road, also provides a link to the A12, A13 and M25, keeping haulage traffic away from Canvey Island residential areas.
Industry representatives including aviation fuel suppliers, hauliers and independent fuel consultants attended the open day, along with senior members of Mabanaft and Oikos.
Oikos general manager, Tony Woodward, gave a short talk about the history of the facility, outlining plans for future development and highlighting the significant benefits the terminal offers. This was followed by a tour of the site to see Jetty 2 and Mabanaft’s road-loading rack up close.
The combination of Jetty 2 and Mabanaft’s exclusive new road loading rack are an exciting development for Mabanaft, helping to consolidate their position as a provider of jet aviation fuel in the UK.
“The Thames is key to supplying the south east of England,” said Martin Cook, Mabanaft’s joint MD.
“Committing to Oikos with an exclusive state of the art truck loading rack, as well as the traditional pipeline links, ensures that Mabanaft will have sole access to a resilient new UK supply route and be able to supply jet fuel to airlines for many years to come.” https://www.mabalive.co.uk/news/december-2018/mabanaft-consolidate-jet-aviation-fuel-supply
News
Watson Fuels partners with Esso on premium grade diesel
“As the business continues to invest in customer experience and product leadership, Esso Diesel Efficient™ fuel is a natural next step for Watson Fuels’ product stable,” said Bob Taylor, Watson Fuels managing director
Watson Fuels has partnered with Esso to announce a distribution agreement for premium grade diesel fuel – Esso Diesel Efficient™. The advanced fuel formulation has been engineered to lower emissions as well as to enhance the performance of heavy-duty and light-duty on-road fleets.
In independent testing, carried out at premier UK vehicle testing site Millbrook Proving Ground, Esso Diesel Efficient™ fuel showed significant reductions in emissions, including an average 10% reduction in harmful NOx emissions, 22% reduction in particulate matter emissions and 2.8% reduction in CO2*.
The addition of Esso Diesel Efficient™ fuel to Watson Fuels’ product stable further enhances the quality and breadth of the firm’s offering for customers. The new product is available through Watson Fuels from five Esso supply terminals in the UK – West London, Birmingham, Purfleet, Avonmouth and Hythe.
Suitable for use in both heavy-duty and light-duty road vehicles, the advanced diesel fuel is formulated to help remove dirty fuel injector deposits, reduce fuel system corrosion and give customers a faster, cleaner fill through its anti-foaming properties.
It has also been shown to lower fuel consumption by an average of 2.8%, making it even more appealing to fleets across the UK*.
“Getting greater fuel efficiency from your fleet is crucial to the financial success of your business – that’s why we developed Esso Diesel Efficient™ fuel,” commented Graham Green, Esso UK commercial sales manager who is looking forward to working with the team at Watson Fuels to help more customers experience the fuel’s benefits.
“Watson Fuels is constantly looking to innovate and ensure that our customers have access to the highest-performing fuel solutions on the market,” said Bob Taylor, managing director of Watson Fuels. https://watsonfuels.co.uk/esso-diesel-efficient/
*Independent tests performed at Millbrook Proving Ground Ltd., UK:
News
HOYER expands UK Petrolog fleet
Matthew Cox, HOYER UK’s senior fleet engineer, beside one of the new Scania vehicles which currently make up 10% of the company’s fleet
HOYER, which recently announced an increase in its investment budget from EUR 90 million in 2018 to a record level of EUR 173 million for 2019, will expand its UK Petrolog fleet with the delivery of 26 new Scania P 450 vehicles in early 2019.
The order includes eight Hydrapak and 16 Non-Hydrapak trucks with drivers having the benefit of new features including Advanced Emergency Braking and Lane Departure Warning as standard. As part of HOYER’s growth strategy, further vehicles will be tendered early next year.
“We are pleased to announce the arrival of new additions to our Scania fleet,” Allan Davison, operations director of HOYER Petrolog in the UK.
“Scania has always offered an exceptionally reliable vehicle whilst also bringing the environmental benefits of returning excellent fuel economy and, importantly, this vehicle is always a popular choice with our driver workforce.”
News
Senior board appointments for Suttons Tankers
The appointments of Gary Oliver and Roger Parr highlight Suttons Tankers’ UK strategy to continually improve the customer experience
Suttons Tankers has strengthened its team with two new appointments at board level. Gary Oliver joins as operations director west, replacing Roger Parr who has now been appointed as the company’s new commercial director.
Roger’s appointment recognises his successful leadership in a series of continuous improvement projects for leading customers of Suttons Tankers.
Gary joins the company from DX Network Services where he has worked as a regional director and operations director since 2010.
Working with Steve Hassall, operations director east, Gary will be responsible for leading the business strategy, objectives and performance at Suttons’ Widnes, Eastham and Willenhall depots.
Gary brings significant experience from the freight and deliveries sector to his new role with Suttons, having also held senior management roles with Target Express and City Link.
“I’m pleased to welcome Gary to the business and look forward to benefiting from his vast experience in senior roles, enhancing customer relations,” said Michael Cundy, managing director of Suttons Tankers.
“And congratulations to Roger who is making a natural progression having been an integral part of our commercial leadership team since joining in 2015.
“These two appointments highlight our UK strategy to continually improve the customer experience and add value at all points in the delivery chain.
“We look forward to reaping the rewards of this fresh structure and approach within our tanker division.”
Suttons Tankers operates in the UK with a fleet of more than 500 vehicles focused on the chemicals, gas and fuel sectors. suttonsgroup.com
Wholesale Price Movements & Price Totem
Wholesale Price Movements & Price Totem | Dec 2018
News
TSA responds to UK’s BREXIT deal
With EU leaders recently approving the agreement on the UK’s withdrawal from the European Union and future relations, the Tank Storage Association (TSA) has cautiously welcomed this positive progress, but recognises that the agreement still needs to go through the UK Parliamentary process before it is approved.
It is essential for TSA members to ensure access to as frictionless a border with the EU and the Rest of World (RoW) as possible following 29th March 2019. We do not believe this is possible without a deal in place.
If the UK Parliament approves the deal on the 12th December, there will be a significant amount of work required during the transition period to finalise the details of our trading relationship. We have highlighted several areas with UK Government where detailed discussion and analysis is required, these include:
News
OnlineFuels and Shell to build digital fuel sales platform
James Stairmand (r), founder and CEO of OnlineFuels, and Marc Noy, managing director of OnlineFuels Deutschland
Last week it was announced that OnlineFuels, a leading B2B online fuel sales platform in the UK, and Shell Deutschland Oil GmbH had entered into a joint venture in Germany, creating OLF Deutschland GmbH.
On launching a fuel sales platform for the commercial B2B market in Germany, OnlineFuels Deutschland intends to cooperate with other oil and energy companies in Germany.
“Germany is the largest fuel market in Europe – an ideal place for us to expand our online offerings,” explained James Stairmand, founder and CEO of OnlineFuels.
Jörg Debus, Shell Commercial Fuels Manager Europa/Africa, said: “With an online platform we want to give our B2B customers the opportunity to order products around the clock to mitigate potential exposures. In addition, the platform aims to make the oil purchasing process as simple and efficient as possible for our clients.”
The go-live is planned for the first half of 2019. The company’s headquarters will be in Hamburg.www.onlinefuels.comwww.onlinefuels.dewww.shell.de
News
Fuelling regional growth in the Northern Powerhouse
Last year Certas Energy opened a Shell GTL Fuel refuelling station at the Port of Liverpool to provide HGV drivers with a lower emission fuel to help fleet operators to assist in the improvement of local air quality
Certas Energy has become an official partner of the Northern Powerhouse, joining the partnership to support improvements in fuel efficiency, transportation and air quality in the North.
“We are extremely proud to be an official partner of the Northern Powerhouse, demonstrating our commitment to providing innovative alternatives to traditional fuel supply and management solutions that support improvements in efficiency and productivity,” said Brian Worrall, director of corporate affairs.
“Already recognised as a top five business in the 2017 North West Top 200 list, we have continued to invest in the region both in terms of infrastructure and our workforce and we look forward to working with industry, government and local communities to lead the way in smarter, cleaner energy choices to support sustainable growth across the North of England and Wales.”
News
Mabaspeed in Scotland
Among the many racing activities enjoyed by customers and terminal operators was the chance to do 10 laps in a single seater racing car
Mabanaft recently hosted a race day at Knockhill Racing Circuit in Dunfermline, Fife, where guests were treated to a high-octane motor sport event at Scotland’s National Motorsport Centre.
Comprising of track racing, rally driving and go-karting, the driving experience included an initial spin in a Civic Type R with race safety training, followed by 10 laps in a single seater racing car. After lunch participants were back behind the wheel ready for 6 laps in a rally car before taking part in a 30 lap go kart competition.
“It was a great day,” said commercial director Martin Cook.
“Our guests – customers and terminal operators – thoroughly enjoyed the racing. For us, it was an opportunity to show our appreciation of their ongoing support, and spend time discussing business in an informal environment. We like to take a collaborative approach to dealing with the challenges that face the industry and enjoyed exploring, amongst other topics, the imminent changes to legislation surrounding bio-fuels and greenhouse gas emissions affecting the whole of the UK.”
Amy Johnston of Certas who attended the event said:
“It was really good, different from your typical day out, a lot of fun and not too formal – despite the typical Scottish weather, it didn’t rain!
“It was great to catch up with the team from Mabanaft; they are a fantastic company to work with, always ready go the extra mile. If we ever need information or to get a better understanding about anything, they are always our first port of call.”
The event was rounded off with a presentation ceremony and awards for speed and technique. Scott Thomson was awarded best driving technique while Emma Shorter came first for fastest Go Karting lap. Inevitably, one driver did get called out for ignoring red flags in the rally event. Naming no names, but everyone who attended the event knows exactly who we are referring to!www.mabalive.co.uk
News
Logistics – zero emissions achievable by 2050
With ‘a key role to play in delivering a cleaner, safer environment for all’, David Wells, chief executive of the Freight Transport Association (FTA), set out his framework for the future of logistics which includes ‘the achievable aim of zero atmospheric emissions and near zero deaths and injuries from freight movements by 2050’.
David was speaking earlier this month at the inaugural Future Logistics Conference & Expo, which ‘brought together the brightest minds in the logistics sector to debate the factors that will shape the industry in the coming years’. On show at the event were the very latest emerging technologies in the freight industry with more than 20 leading speakers – including experts from the Centre for Connected and Autonomous Vehicles and the Transport Research Laboratory.
“From self-driving vehicles to artificial intelligence, the world around us is changing fast and the logistics sector is embracing new technologies and solutions quickly,” added David.
“As the only event of its kind, the Future Logistics Conference & Expo armed companies with the toolkit required to embrace our brave new world; empowering them to reap the opportunities on offer but also protect against the challenges ahead, including Brexit and worsening skills shortages.
“FTA has already established a framework to propel the logistics sector into a bright and innovative future, defined by technological progress, safety, compliance and employee welfare. With the support of government, businesses and the wider logistics community, we aim to create an industry that has the systems in place to constantly adapt to meet the ever-evolving needs of consumers; future tools are utilised to unlock every possible inch of efficiency; talented and skilled workers are attracted to join the sector; and we achieve zero atmospheric emissions and near zero deaths and injuries from freight movements. And we aim to do this all by 5050.”
The event was also supported by Multimodal 2019 and The Chartered Institute of Logistics and Transport.
www.fta.co.uk
News
A ‘Fuel Proof’ partnership for Gulf Aviation
As part of the aviation-only collaboration, Fuel Proof will supply bunded tanks, with capacities from 330 litres up to 85,000 litres, to a number of airports and air fields across the UK
Heysham-based fuel storage equipment manufacturer, Fuel Proof, has entered into a new partnership with Gulf Aviation. The new collaboration will see the two international brands work together on the storage and distribution of Jet A1 and Avgas 100LL fuels for a range of Gulf Aviation customers across the UK, which includes Birmingham Airport and Cardiff Airport.
As part of the aviation-only collaboration, Fuel Proof will supply a range of bunded tanks with capacities from 330 litres all the way up to 85,000 litres, to a number of airports and air fields across the UK.
With an inner tank constructed from stainless steel, the storage tanks offer security and durability with systems that are designed to deliver better security, service life, ease of use, reliability and value for money for aviation customers.
The storage options will be available through leases, lease purchases or direct sales and can be adapted to meet individual budgets and requirements.
“We’re delighted to be collaborating with Fuel Proof to enhance the storage capabilities we can offer our aviation fuel customers,” said commercial manager, David Dykes.
“We know from listening to our customers that they already trust the Fuel Proof brand and welcome the quality of their products and the safety they offer. It was one of the main reasons we chose to speak with them about a partnership, and we also know they share the same values as us in terms of providing excellent service and exceptional value.”
Roger Pilkington, who oversees the aviation department at Fuel Proof, added:
“We are very excited about the opportunity this offers us as a business – Gulf Aviation is a huge company and an internationally-recognised brand.
“We know our products offer the highest in quality, so we are confident in our ability to accommodate all fuel requests – from small airfields to regional airports. We’re looking forward to growing and adapting with Gulf Aviation over the course of our partnership.”www.gulfaviation.co.uk
News
A fleet of poppies
Paying their respects – Gleaner Oils in Elgin and Marsh Fuels in Newbury and as Fuel Oil News editor Jane Raphael was taking this poignant WW1 scene in the Cheshire village of Lower Peover, an NWF Fuels tanker was passing by
As the centenary of Armistice Day approached, Fuel Oil News was pleased to see photographs of tankers with large red poppies.
Knowing that the origins of many early fuel distribution businesses came about post war, their tributes to the fallen are very apt.
At Gleaner Oils, Emma Golledge said:
“Whilst there is no direct link between the founders and the Armed Forces, our head office in Elgin is situated next to an RAF base and an Army base, so many of our staff and customers in the area have very strong links to the military.”
Dave Marsh at Marsh Fuels in Berkshire said:
“As individuals and as a company we like to show our respect for those who gave their lives in the service of the Armed Forces and for those who serve today.”If your company has a photograph to share, please send to jane@andpublishing.co.uk.
News
New Customer Contact Centre
“Our Norwich team will play a core part in delivering a compelling experience for our customers, and in fuelling Watson Fuels’ continued success,” said Serena Scott, regional domestic manager who is heading up the centre
On Wednesday 14th November, Watson Fuels will officially open its new Norwich Customer Contact Centre. Joining the Watson Fuels UK management team for the ribbon cutting ceremony will be the global World Fuel Services leadership team.
News
Clean Air Conference 2018
Delegates attending the inaugural conference in 2017
On Tuesday 13th November Certas Energy will be holding its second Clean Air Conference, with this year’s conference taking place at Herringham Hall, Regents University, London.
Alternative fuels represent a real and immediate solution to cleaning up Britain’s air quality problem while maintaining business productivity and profitability – however, there is confusion amongst businesses around the benefits of alternative fuels and their role in reducing emissions.
The conference, which is designed to ‘clear the air on alternative fuels and explore ways businesses can help improve local air quality’ will feature many highlights including the launch of its latest industry report – The Alternative Guide to navigating the new Energy Mix: Separating Fuel Facts from Fiction’Conference agenda and speakers
News
Inter Pipeline to acquire NuStar
The transaction provides an attractive entry into the Port of Amsterdam. Historically, the NuStar Europe business has experienced a high contract renewal rate with its customers with storage utilisation rates averaging approximately 90% in the first half of 2018
Inter Pipeline’s European storage subsidiary, Inter Terminals has entered into an agreement to acquire 100% of the issued share capital of NuStar Energy, L.P.’s European bulk liquid storage business, NuStar Europe for cash consideration of USD$270 million, or approximately CAD$354 million.
The transaction is expected to close in the fourth quarter of 2018 and is subject to customary closing conditions.
“The addition of NuStar Europe is an exciting step forward for our European bulk liquid storage business,” commented Christian Bayle, Inter Pipeline’s president and chief executive officer.
“The acquisition materially increases our overall storage capacity and establishes Inter Terminals as the UK’s largest independent storage operator.
Furthermore, the transaction provides an attractive entry into the Port of Amsterdam. The Port is the world’s largest gasoline blending hub and has experienced significant storage growth over the years.”
NuStar Europe consists of seven coastal terminals totaling 9.1 million barrels of storage. One terminal is located in Amsterdam, Netherlands with the remaining facilities located in the United Kingdom (UK) near London, Runcorn, Eastham, Grangemouth, Clydebank and Belfast. The acquisition will increase Inter Terminal’s storage capacity by approximately 33% to 37 million barrels.
In the UK, the 1.9 million barrel Grays terminal is strategically located on the river Thames and serves the greater London area. Grays is responsible for handling approximately 17 million barrels of refined products per year, and provides cost effective access to London’s fuel distribution network. The 49-tank terminal has averaged approximately 100 percent utilisation over the past three years.
The smaller terminals at Belfast, Eastham, Grangemouth, Runcorn and Clydebank in the UK primarily support the distribution of petrochemicals, gasoline, diesel and sulphur to regional demand centres.
The 3.8 million barrel state-of-the-art terminal in Amsterdam plays a key role in the Port of Amsterdam with approximately 10% of the independent storage capacity. The terminal provides gasoline, gas oil and fuel oil storage, and blending services, including those required to produce IMO 2020 compliant marine fuels. The 44-tank facility has averaged approximately 100% utilisation over the past three years.
Cash flow in the business is supported by cost-of-service and fixed-fee contracts with major integrated oil companies, petrochemical companies and petroleum traders with terms typically ranging from one to five years. Additional revenue is generated through ancillary services such as product blending and throughput fees.www.interterminals.com
News
Clean Air Zones – is your fleet up to the challenge?
By January 2019, over 70% of Wincanton’s fleet will meet Euro 6 standards for exhaust emissions of NOx and other pollutants
As the government looks for ways to reduce harmful emissions, several Clean Air Zones (CAZ) have been identified and agreed by local authorities across the UK. While this is a positive step for air quality and the environment, it carries consequences for many industries – particularly logistics – which will have to anticipate the new charges when driving in these zones.
For example, some city councils have suggested daily charges of up to £12.50 for taxis and private cars to drive in designated Clean Air Zones. This increases to up to £100 per day for lorries and HGVs, a significant cost, not just for businesses but inevitably for the customer.
The five cities that have been identified for the CAZ are Birmingham, Leeds, Nottingham, Derby and Southampton with London selected for an Ultra-Low Emission Zone (ULEZ). Companies which have invested in ‘clean’ engines will not incur charges but there could be a large proportion of businesses which are unaware of these changes or how they might affect them.
A recent survey from the British Vehicle Rental and Leasing Association (BVRLA), found that only 55% of small and medium-sized businesses know that CAZs are being introduced. Companies not investing in clean engines or working with reputable partners who are, risk being hit by these costs.
At Wincanton, over 70% of our fleet will meet Euro 6 standards for exhaust emissions of NOx and other pollutants by January 2019. We are confident that with the latest technology and renewal of the fleet we will meet the requirements of the CAZ for our own benefit and that of our customers. What’s more we are the first (and only) 3PL to have committed to electric trucks for urban deliveries, with a small fleet of FUSO eCanter vehicles currently being rolled out with a major customer.
However, we realise not all providers will be in this position, whether they are a 3PL or subcontractor and this means higher operating costs. If these costs eventually get passed onto customers, businesses could soon see the negative impact of high emission engines not only on the environment but also on their bottom line.
Time is ticking for companies to take action on this issue. There is a deadline of 31st December for local authorities to publish plans on what Clean Air Zones will look like and confirm charges for different types of vehicles.
From plastic to air pollution, environmental issues have never been so high on the public agenda.www.wincanton.co.uk