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News

Tanks – getting the last drop out

If you spot a tank in a compromising position, please take a photo on whatever you have to hand and send it to jane@fueloilnews.co.uk Everyone knows that heating oil orders are smaller and more frequent – but, evidence that times are really hard has come from Monument Fuels…. When Trevor Rolph of Monument Fuels spotted this tank, he only had his Blackberry to hand.  “I thought it was such a good example of what some people are trying to do in these tough times that I had to take the shot.  Obviously, it’s not really the thing to do to your tank!” For more comment on the impact of the recession, see the April issue of Fuel Oil News.  Your copy will be with you shortly.

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Lewis Tankers flying high

Delivering 115 million litres annually, Lewis Tankers will employ three dedicated aviation fuel tankers on the new Q8Aviation contract Lewis Tankers has won a new contract with Q8Aviation to handle deliveries of aviation fuel to Bristol, Cardiff and Exeter airports from Hallen PSD, near Avonmouth. The operation which will run over 363 days of the year will see Lewis Tankers delivering an estimated 115 million litres of fuel annually, utilising a team of up to ten drivers and three dedicated aviation fuel tankers. The Yorkshire-based tanker operator already has contracts with Q8Aviation to deliver aviation fuel to Newcastle and Leeds/Bradford airports from Misterton PSD, near Doncaster, and to Blackpool airport from Backford PSD, near Chester. The contract extends Lewis Tankers’ operations into the south west and has prompted the company to set up a small operating base in Avonmouth, with plans to develop its presence in the region. Stewart MacDonald, Lewis Tankers’ managing director, said: “We’ve been working with Q8Aviation in the north of England for three years and are delighted that our performance has earned us this opportunity to demonstrate our abilities in the south west. This contract broadens our coverage of the UK and provides us with a platform for growing the business in the region.”http://www.lewistankers.co.uk/

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Top up telemetry – what’s on offer?

In the December issue, fuel oil news covered the subject of tank top up services. Whilst concerns were raised about the reliability of some products, Melanie Noel, WP Group’s fuel sales manager commented: “Although there have been a few issues with older systems, mainly the battery, new telemetry has improved.” In this issue we take a closer look at available telemetry – its features, benefits and reliability.

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Suttons lands Total contract

New contract with Total UK strengthens Suttons position as a supplier of bulk fuel transport Suttons has landed a new contract with Total UK for the distribution of petroleum products through its road tanker division. Suttons group managing director, Andrew Palmer said:  “We are delighted Total chose to award this business to Suttons. This contract strengthens our position as a supplier of bulk fuel transport. “Suttons will bring industry leading standards of health and safety and operational excellence to the contract and we look forward to a successful partnership.” The contract, which focuses on business to business commercial fuel deliveries nationwide, has seen Suttons invest in new equipment for its existing fuels fleet. Paul Maloney, B2B operations manager for Total UK, added: “We selected Suttons following a competitive tendering process. Suttons has a proven record of adding value and delivering a consistent and reliable service to its customers in the bulk fuel sector. The company also recognises that safety is paramount and must always come first.”    www.suttonsgroup.com

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Budget priority – reduce fuel duty

As the Budget fast approaches, the Freight Transport Association (FTA) continues to press the case for a reduction in road fuel duty to ease the pressure on freight operators. In its pre Budget submission to George Osborne, FTA argues that the chancellor’s priorities must be to: • Ease cost pressure on domestic freight activity and stimulate economic growth through consumer demand by reducing road fuel duty by 3ppl with commensurate reductions in the duty rate for gas oil. • Stimulate investment in low-carbon fuelled vehicles by fixing fuel duty rates for natural gas and biomethane relative to diesel rates for at least 10 years. • Ensure that the introduction of the HGV Road User Levy will be tax neutral in practice by confirming: the rates of the levy that will apply; that Vehicle Excise Duty rates will not be subject to increase simply to allow that neutrality to be achieved; and that holders of Reduced Pollution Certificates will be compensated by replacement grants. www.fta.co.uk

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Theft advice to customers

The Federation of Petroleum Suppliers (FPS) says domestic oil consumers should be extra vigilant when it comes to safeguarding their oil supply. The FPS recommends heating oil customers take the following measures:-

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Visionary fuel solutions

Two former oil company executives have established a new management and consulting company – Fuel Supply Solutions. With over 60 years of combined experience, founders Patrick Hudson and Keith Guppy want to put industry insight at the forefront of their service. Patrick Hudson explains:  “End-users and resellers of petroleum products tend to focus on the current trading climate and will invariably rely too heavily on past experiences when looking forward.  In the current environment of rapid industry change, we aim to have a visionary approach for our clients through consultancy, products and services that reflect where the industry is going, not where it has been.” Keith Guppy adds:  “We’ve spent several months carefully looking at key industry indicators and matching potential business partners that share our vision. Our goal is to now focus on providing valuable consultation across a wide client base including retailers, distributors, wholesalers and end users, our website will give more details of these core areas and target markets”. www.fuelsupplysolutions.co.uk

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Clugston expands fleet

Ready for action – brand new Clugston tanker Clugston Distribution has announced a £1.5 million capital expansion of its fleet.  The expansion is part of a strategy to increase the company’s presence in the fuels, intermodal, bulk powder and bulk ash movement markets. The investment, which will lead to ten new jobs being created, means the company will have increased its workforce by 25 people in the last year alone. With the funds the company will acquire an additional 15 Renault Premium tractor units; five of which will be specified with ADR and Pet Reg compliance and will aid the growth of the fuels fleet on the Humber, as well as the start of the Teesside fuels operation in the summer. The remaining eight tractor units will be specified with hydraulic discharge fitted compressors for use in the company’s bulk powder operation. On the fuels logistics side a new fuels tanker, built by Cobo will be on fleet in April and used in the new Teesside operation from June. Commenting on the investment, Clugston Distribution’s general manager, David Heath, said: “We are extremely pleased that the group board of Clugston is backing our strategy of expansion in targeted markets. We are anticipating 2013 to be a successful growth year across all areas of the business and remain positive about reinforcing our market position with our current client base as well as new customers.” www.clugston.co.uk

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Fuel laundering – is enough being done?

Jim Allister TUV leader, Jim Allister has hit out at the Irish justice minister’s response to fuel laundering. He said:  “How often do we not hear about HMRC finds of laundered fuels and laundering facilities, mostly in South Armagh, yet the conversion rate into convictions is abysmal. “A recent answer to me from the justice minister confirms just how pitiful the judicial response has been.  Since April 2009 the total fines imposed have been a derisory £9916.  Nothing more than suspended sentences have been imposed and one defendant got his wrists slapped with a 200 hours community service order. “The failure to bring anything other than a token number of prosecutions and sentences is a major concern. It seems you are more likely to spend time in prison if you block a road carrying a union flag, than if you cheat HM Revenue out of millions of pounds of tax. And coming from South Armagh seems to help!” HM Revenue & Customs confirmed that in the last four financial years, including 2012-13 to date, fines of £9916, costs of £180, confiscation orders of £1,211,211 and a compensation order of £500 have been imposed. In addition, suspended prison sentences totalling 157 months have been given. Two hundred hours community service was imposed on one defendant whilst three people also received a serious crime prevention order on top of confiscation orders. www.jimallister.org

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Discounted fuel with new card

The new RHA/FTA card from The Fuelcard Company Exclusive access to discounted fuel is now available to members of the Road Haulage Association and Freight Transport Association through a new joint fuel card.    The Fuelcard Company card operateson the Keyfuels network, which covers one in five of all UK fuel stations.  The new card can be used at over 1600 sites nationwide.  Many sites have dedicated HGV fast flow pumps and a third have capacity for HGVs up to 44 tonnes.  Members will receive a weekly fixed price based on the bulk fuel market, which could mean savings of over £50,000 per year.* Users will have access to the Fuelcard Company’s online fuel management systems, allowing them to keep track of fuel spend whilst its smartphone app means that they will always be able find a fuel station.  In addition, the online site locator www.ftafuel.co.uk gives the option to download fuel site information straight to a sat nav. The card is free for the first year and there is no contract to sign or cancellation fee. FTA chief executive, Theo de Pencier said:  “Joining forces with RHA means that we can pool our resources and offer members excellent discounts and price reductions.  Having worked together with FairFuelUK in a successful campaign to stop fuel duty hikes, we have gone one step further towards the solution to getting fixed weekly fuel prices for our members.” www.ftafuel.co.uk *Based against national average pump prices Jan–Dec 2012, with an average weekly volume of 30,000 litres.

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Simon supports Prax expansion

From a standing start, Prax is achieving its sales targets in the Midlands and the north of England says sales and marketing director, Neil Robertson Well established to meet demand in the south of England from storage facilities on the Thames, Prax Petroleum is using Simon Storage’s Immingham West terminal as a strategic storage and distribution hub for market expansion. Simon Storage took the first deliveries of diesel and gas oil for Prax into Immingham West in September 2012. Securing a second terminal at Immingham allows Prax to meet growing demand for its commercial fuels on a wider national scale. Since then product throughput has risen and last month the contract with Prax was extended to include storage of biodiesel (B100) for intank blending to comply with the Government’s Renewable Transport Fuel Obligations. Under the contract at Immingham West, Simon is providing Prax with more than 18,000m3 of storage capacity, together with road loading facilities for onward delivery to customers. Neil Robertson, Prax’s sales and marketing director, says: “Immingham provides an optimal distribution point for supplying our customers in the Midlands and the north of England. From a standing start just a matter of months ago we are achieving our sales targets in these regions and increasing fuel supply security for all our customers.” In addition to strategically located UK terminals, Simon’s expertise in the storage, blending and distribution of green fuels makes it an ideal partner for Prax’s venture north.  Richard Sammons, Simon’s chief executive, comments: “Simon provides fuel storage and handling solutions for some of the world’s leading oil producers and distributors. We are able to offer fast-expanding fuel suppliers like Prax Petroleum a fully integrated package from receipt through to redelivery with intank or inline blending of biofuels with conventional hydrocarbons to meet RTFO regulations.”www.simonstorage.com        www.praxpetroleum.com

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BP tanker drivers strike

This morning more than 40 BP tanker drivers, working out of the Grangemouth oil refinery walked out in a dispute over cuts to pay and pensions. With the walkout scheduled to last until 8am on Monday morning (25th February), Unite believes that the action will affect aviation supplies and BP forecourts across Scotland and north east England. According to Unite, 90% of the 42 drivers balloted voted for strike action following the transfer of an aviation contract from BP to DHL. The union estimates that drivers could lose up to £100,000 from the value of their pensions and £1,400 a year in wages as a result. A BP spokeman said: “Our priority remains the safe delivery of fuel products to all our customers. We have been working to, and continue to work to, minimise any potential disruption the industrial action planned for this weekend at Grangemouth could cause.” Tony Trench, Unite’s regional industrial officer remarked: “It’s an outrage that BP, a multi-national giant which earns billions every year, is exploiting the UK’s weak employment laws to effectively swindle workers out of their retirement savings and future earnings.” The union has announced a ban on overtime from Monday and if the dispute is not resolved quickly, a second four-day strike is scheduled for 28th February.

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Northern Ireland – an overdependence on oil?

When kerosene is being distributed by taxi rather than tanker, it’s time to take action. Air your views on the heating oil market, among other hot topics, at the Distributor Debate on Thursday 7th March. Reserve your FREE place(s) today by emailing sandra@fueloilnews.co.uk As the Northern Ireland Housing Executive carries out a consultation on its heating policy, you are cordially invited to join in the Fuel Oil News Distributor Debate on Thursday 7th March. Highlighting an overdependence on oil, the report says that whilst oil is technically a good heating solution, it is increasingly difficult to afford with ‘the lack of a PAYGO option a major factor’. It also points out that switching to oil does not currently have the same benefits for tenants as it did in previous policy periods. Among the questions being asked are:Oil heating is clean and efficient but requires bulk fill ups which are expensive. What ways do you think the problem of finding the money for this could be overcome?If you live in a rural area and oil or wood pellet systems are your only choice, what would be your preference?What are your views on schemes using saving stamps or local community “pay as you go” schemes and would you welcome such a community based scheme if it was available? __________________________________________________________ DISTRIBUTORS ACROSS IRELAND ARE ALL WELCOME TO JOIN IN THE DISTRIBUTOR DEBATE AT THE TEMPLETON HOTEL, TEMPLEPATRICK WHEN ISSUES SUCH AS THESE WILL BE DISCUSSED. REGISTER FOR YOUR FREE PLACE(S) TODAY sandra@fueloilnews.co.uk__________________________________________________________ Responses to the consultation can be made in writing or email.  Download the heating policy review document, the questions and accompanying letter at www.nihe.gov.uk/index/corporate/consultation.htm Additionally, a Rural Homes and People Draft Action Plan 2013-2015 has also been published with actions ‘designed to ensure that an equitable share of available resources is directed to rural areas’.  The NIHE intends to ‘undertake the actions listed by March 2015, subject of course to the necessary funding being available’. To return to the newsletter click here.

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Fair price award for Isle of Wight Fuels

Isle of Wight Fuels providing high quality products at competitive prices The award was presented to Isle of Wight Fuels by Community Buying unlimited, the co-ordinator of community buying initiatives in 22 counties in the UK.  Dave Grannum, general manager of Isle of Wight Fuels said:  “This award demonstrates that despite the additional costs and logistics of bringing oil to the Isle of Wight – we’re still able to provide fuels to Island homes and businesses at a cost which is in line with mainland suppliers. “Our aim is to provide high quality products at competitive prices – this award shows that we’re achieving this goal. We’re committed to providing an outstanding service and will continue to offer a fair price to all our customers.” Isle of Wight Fuels owns and operates the Isle of Wight’s only fuel storage facility and distributes oils and fuels to domestic and commercial customers across the Island. Oil is shipped into the terminal in East Cowes by the company’s own tanker, the Rix Merlin. The facility in Kingston Road stores up to three million litres of fuel for domestic and agricultural use, as well as supplying fuel for filling stations, commercial operations and distributors, to keep the Island running. Community Buying Unlimited placed orders for more than 7 million litres of oil in 2012.  Speaking about the 2012 awards, founder Chris Pomfret said: “Last year was an incredible year for community buying groups in general and oil buying groups in particular. These individuals, suppliers and organisations went the extra mile and certainly thought way outside the box to help make community oil buying an even bigger social and environmental success.” www.isleofwightfuels.com www.community-buying.com To return to the newsletter click here.

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Essar building a brand in the UK

This first Essar branded tanker is now working on deliveries to commercial customers Last week Essar Oil (UK) unveiled its first ever Essar liveried tanker at the company’s Stanlow manufacturing complex The tanker, which is set to become a familiar sight on the motorways of north west England, will be used on commercial deliveries. Operated by Flexigrid, Essar’s haulage service provider, the vehicle is the first branded tanker to be put on the road since Essar acquired the site in August 2011. Colin Dixon, head of marketing at Essar Oil, said:  “Our priority since acquisition has been to build our reputation for being a reliable supplier with whom it’s easy to do business. On the back of getting these basics right we’ve been able to expand our business, including that part in which we deliver fuel into the premises of the bus & rail companies, hauliers, parcel delivery companies, manufacturers and resellers. The fact that we’ll now have a very visible presence out on the roads is a sign of our determination to attract new customers, further grow the business and build our brand in the UK.” “We’re delighted to have an Essar branded vehicle as part of our fleet and look forward to growing our partnership with Essar over the coming years,” added Michael Blundell, Flexigrid director.  The branding of the tanker reflects the hard work of the staff at both companies over the last 18 months, in particular the professionalism of the drivers in delivering the highest level of service.” To return to the newsletter click here.

News

UK road fuels – competition is ‘working well’

Released on 30th January, the Freight Transport Association (FTA) has hailed the OFT report into competition in the UK road fuel sector as ‘just a side show’. The report found rises in pump prices for petrol and diesel over the last ten years have been caused largely by higher crude oil prices and increases in tax and duty and not a lack of competition.  The evidence gathered suggests that at national level competition is working well in the UK road fuel sector, although it has identified an absence of pricing information on motorways as a concern and does not rule out taking action in some local markets if there is persuasive evidence of anti-competitive behaviour. _______________________________________________________________ FOR A DETAILED LOOK AT THE REPORT’S FINDINGS – SEE THE INSIDE OUT PAGE IN THE MARCH ISSUE OF FUEL OIL NEWS _______________________________________________________ The FTA however believes that fuel duty still remains at the heart of the pump price problem. James Hookham, FTA managing director policy & communications, said: “This report won’t change anything, and FTA believes it is only a distraction from the real issue of fuel duty and the chancellor still has to do something.” Mr Hookham’s message to the consumer at the pumps was: “In our view, the quickest and most effective way to get expensive petrol down is not to buy it.  Quite simply, if there are scurrilous petrol retailers who set their own pump prices, then don’t go to them – take a leaf out of the commercial operators’ handbook and don’t get ripped off.” Through its work with FairFuelUK, FTA continues to campaign on behalf of its members, calling on government to recognise in its forthcoming Budget the positive economic benefits (demonstrated by both the CEBR and NIESR reports) that a cut in fuel duty could have. Clive Maxwell, OFT chief executive, said:  ‘We recognise that there has been widespread mistrust in how this market is operating. However, our analysis suggests that competition is working well. “Competition appears to be strong at national level. Where we receive evidence of potential anti-competitive behaviour we will consider taking action. For example, we’ve recently opened an investigation into the supply of road fuel in the Western Isles of Scotland.’  www.oft.gov.uk To return to the newsletter click here.

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Advantages at ICIS for Morris Lubricants

Jan Trocki, marketing and technology general manager at Morris Lubricants will be speaking at the 17th ICIS World Base Oils and Lubricants Conference in London.  Addressing around 600 delegates this Thursday (21st February) at the Hilton London Metropole, Jan will focus on the challenges facing smaller blending companies.  Despite difficult operating environments, he will reassure delegates that there are many strengths and advantages amongst these companies. Jan will also act as chairman for the conference on day two (Friday 22nd February), which will include speakers from Shell and Peugeot. A prominent figure in the European lubricants industry, Jan was recruited last April by Shrewsbury-based Morris Lubricants.  He previously held senior managerial positions with BP, Castrol and SK Lubricants Europe BV, a subsidiary of Korea’s largest energy company for three years. He is chairman of the technical council at ATIEL, the technical association of the European lubricants industry. It will be the third year running that Jan has addressed this major conference, which attracts delegates from around the world and shares unrivalled market intelligence. www.icisconference.com/worldbaseoils  www.morrislubricants.co.uk To return to the newsletter click here.  

News

More jobs in oil

As an oilfield tax allowance paves the way for hundreds of new jobs in the UK, the Oil and Gas Global Salary Guide 2013 says UK oil and gas professionals are well rewarded. Based on data from over 25,000 respondents, the guide produced by Hays Oil & Gas and job site, Oil and Gas Job Search shows that full time professionals in the UK oil and gas industry enjoy average salaries of £57,900 per annum – a rate of growth of 7.2% from last year and more than twice the current rate of inflation. A rise in bonuses has continued and is now the dominant mechanism by which companies attract and retain talent. On average, bonuses account for a further 5.8% of the employees overall package with almost two thirds receiving some kind of benefit or allowance on top of their basic salary. Download a free copy of the guide www.hays.com.au/employer-services/oil-gas-recruitment/Salary-guides/HAYS_089070 www.oilandgasjobsearch.com/SalaryGuide Making the most of a valuable national asset As the government stimulates investment in the North Sea to ‘make the most of this valuable national asset’, EnQuest, the North Sea’s largest independent UK oil producer, has secured a brownfield tax allowance to fully exploit its Thistle oilfield. The move will safeguard almost 500 existing jobs and create almost 1000 new jobs across the UK oil and gas supply chain in Aberdeen, Newcastle, Manchester and Swansea over the next three years. “We acquired Thistle in 2010, and as a result of our investment so far production has significantly increased,” said David Heslop, general manager for EnQuest in Aberdeen.  Thistle is a prime example of how we’re able to recover more oil from mature assets through a combination of innovative ways of working and technical expertise. It demonstrates what EnQuest does best and underlines our long-term commitment to the North Sea.” “Oil and gas will still be needed to provide 70% of our energy needs into the 2040s,” added Mike Tholen, Oil & Gas UK’s economics and commercial director.  “EnQuest’s decision to make fresh investment in the Thistle field will provide  hundreds of jobs right across Britain and with extra oil being extracted, UK energy security will be strengthened.”  www.enquest.com To return to the newsletter click here.

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Serving niche markets at Alpeco

Adler & Allan is one of the companies taking advantage of Alpeco’s bespoke liquid loading and dispensing systems With a big reduction in the number of new tankers produced last year, manufacturers and ancillary equipment suppliers are increasingly turning to niche markets. One niche area which has attracted the attention of Alpeco is bespoke liquid loading and dispensing systems for depots, harbours and trucks, with the company focusing its efforts on the design and manufacture of such equipment. A unit with a small demountable electric pump and meter system is now available from Alpeco.  Designed to be carried in a van or pick-up truck with an IBC or small storage tank, the unit is ideal for conducting small fuel deliveries to plant equipment such as generators, or for sites with difficult access where it may not be practical or cost efficient to send a delivery tanker._____________________________________________________________For more news on the niche markets being served by tanker manufacturers, see the 2013 Tanker Review in the February issue of Fuel Oil News._____________________________________________________________www.alpeco.co.uk To return to the newsletter click here.

News

Online at Lateu Logistics

Chris Dalton, managing director Just a few months after opening, Lateu Logistics has the ‘enviable position of working outside the UK as well as closer to home’, says managing director Chris Dalton. The team at Lateu Logistics has over 40 years combined experience within the transport industry. The company, which was established to fill a gap in the energy/chemical sector for experienced consultancy across the total supply chain logistics, has recently refined its online presence to better showcases its skills. “In a very volatile world where austerity is the key word, people are changing their perceptions on spending and value,” said Chris. “With businesses needing to evaluate their modus operandi, Lateu Logistics can help them decide the way forward from an impartial and knowledgeable base, taking a holistic view of their supply chain and business development needs of the future.” “We can also enhance our offering to clients with outsourced support services including planning, customer services, logistics management and sub-contractor selection which the client can no longer  undertake internally due to cost, skill or corporate policies.”   www.lateulogistics.com To return to the newsletter click here.

News

Ready for a top up?

Speaking on the subject of top up, the majority of distributors to whom Fuel Oil News recently spoke had only a small number of customers opting for the service So which customers are using top up, and is the service in decline due to the proliferation of price comparison sites? Less than 5% of Nolan Oils’ customers use top up said transport manager, Mark Mackenzie.  “It’s becoming less popular as everyone’s pushed further into comparing prices for everything.  When prices didn’t change every five minutes you’d find a much more loyal customer base, willing to sign up to standing order accounts and top up services in the knowledge that they were getting a fair price and a reliable supply.” “I think the level of top up will grow if there’s a challenging winter,” commented Craggs Energy managing director, Chris Bingham. “That’s when customers start to focus on the guarantee of supply which comes as part of most top up services.” Which customers are using top up? Whilst some distributors, including AD Fuels, reported a broad spectrum of customers keen to top up; for others, top up customers fall into very specific sectors. “Our service is used mostly by the elderly, those who work away from home and by second homeowners,” Mark Mackenzie told FON.  “We also encourage top up for those customers who habitually run out, but it’s hard to educate some people…. However, when you offer the service we do, customers know they’ll only wait a day or two, at the longest, for a delivery.” “A good percentage of customers using this service are sons and daughters caring for elderly parents,” says Stevenage Oils’ account manager, Lisa Armstrong.  “Others include community centres and conference venues that mustn’t run out, and those who aren’t particularly worried about cost.” At Craggs Energy top up is offered to a small but solid set of customers, often along with a fixed monthly payment model.  Chris Bingham commented: “Many customers are what might be termed vulnerable, but we also have a number who just want to forget about the need to check their oil and trust us to manage the levels.” Is top-up in decline? Mark Mackenzie believes that the number using top up services has noticeably declined since the rise of price comparison sites.  “More and more customers are quoting online buying site prices when they either ring for a quote or wish to compare their current supply situation.” AD Fuels’ Rob Warne shares this view: “Generally people are shopping around more – customers admit to it.” Ribble Fuels has not, however, noticed any affect.  Managing director, David Hodge, said: “We’re talking about two very different markets.  Customers that use our top up service tend to be those that want to pay by direct debit and spread the cost, or they’re loyal, regular customers.” Chris Bingham adds: “I don’t know if price comparison sites are impacting the top up model.  As we offer a full online pricing/ordering system, we’re pulling in a strong number of online customers directly. “I do feel that the industry risks losing control of online sales if it doesn’t offer such a sales channel.  With the vast majority of distributers shying away from providing a direct online service, we’re encouraging third parties to build alternative sales channels that carry none of the costs and risks that we’re forced to shoulder.  Other industries have found to their cost how fast this can develop, and we can only blame ourselves if we allow it to happen.” Trusting telemetry Concerns were raised as to the effectiveness of available telemetry to assist with top up.  “Telemetry isn’t as good as it needs to be,” said David Hodge.  “At any one time there can be 10-15% of monitors not working and often batteries are dead.” Consequently, some did not feel confident relying on technology; Marsh Fuels  being one.  “We use good old-fashioned pen and paper, cutting costs and getting back to basics,” said Carried Marsh. “After all, I don’t recall ever hearing of a pen’s battery running out or it being useless in a power cut!   We review customers’ annual usage and provide a delivery schedule which is 90% effective.  It’s much easier than temperamental (in our experience) electronic readings or confused customers.” Stevenage Oils also runs a manual service as Lisa Armstrong explains. “The emphasis is on the customer to request top ups, it’s not a service we actively promote.  The customer sets up a delivery timescale and it’s up to them to let us know if they want to amend this.  We do monitor accounts on a regular basis as we don’t want our drivers turning up to deliver oil and finding that it’s not needed!” For Melanie Noel, WP Group’s fuel sales manager: “Whilst there have been a few issues with the older systems, mainly the battery, the new telemetry has improved.” Find out how telemetry has been improved when Fuel Oil News looks at the very latest telemetry products in the January issue of Fuel Oil News.

News

Credit where it’s due

Global recession has put the credit insurance market through the most difficult period in its history.  As business failures took a dramatic rise, claims flooded in to insurers from companies incurring bad debt losses caused by the insolvency of their customers From being a relatively specialist area of the insurance market that rarely hit the headlines, credit insurance was promoted to front page news in the financial press. The industry received criticism for reducing available cover and increasing premiums; and coverage was sprinkled with selected high profile failures, and perceived early withdrawal of cover for suppliers. “Insurers were forced to defend their actions and reputations, despite paying out millions of pounds on the insolvencies of firms such as Petroplus in early 2012, and Connaught Rok in the construction sector.  In the retail sector, the collapse of Woolworths saw companies facing multi-million pound claims,” said Paul Martin, managing director of the John Reynolds Group. “Pre-recession days had seen credit insurance companies operating in a relatively benign economy. Claims levels were easily manageable, premiums were very low and the amount of cover being written for policy holders was at an all time high.  During the worst days of the recession there is no doubt that, in the face of unprecedented claims levels, some insurers took action deemed necessary to balance the risk being written for the premium income being received. Cover and premiums could not be sustained at pre-recession levels, and insurers had to make a call on when they felt suppliers should no longer be insured if a business hit upon hard times. Mistakes were made and lessons learned during the process.” However, Paul believes that communication with policy holders is superior, and cover has improved as a result. “A no benefit of the doubt attitude has been replaced with a credit where it’s due mentality. Competition in the market has returned and non cancellable credit limit cover is being developed.  While high levels of insolvencies are likely to continue during the economic gloom, the good news for businesses is that credit insurers have the capacity to offer increasing levels of cover.” Credit insurance from Reynolds Trade Credit is a bespoke product, designed for the individual needs of a client’s business.  Access to credit information can also help grow a business rather than simply protect against bad debts.  It can form an integral part of an existing strong credit management process. As a business changes, the insurance is designed to develop alongside, meeting the client’s needs for the lifetime of the relationship.  www.reynoldsinsure.com   A fully integrated system OAMPS Petrochemical – part of the OAMPS (UK) Group – handles in excess of £45m in premiums and manages over 6500 claims each year in the UK and Ireland. “We fit insurance to your business rather than trying to fit your business to an insurance product,” said scheme director, Ros Bayley. Each policy is written and designed with industry trade associations and underwritten by leading global insurers, including Zurich and QBE. “Our complete selection of specialist insurance products is carefully tailored to the needs of these sectors, bringing peace of mind to a vast range of clients from sole traders to multinational conglomerates,” added Ros. “With over 25 years’ experience, we can carefully identify sectors where although the general perception of risk is high, our experience can identify the true hazard.  The risk can then be lowered through the utilisation of our specialist risk management services.” OAMPS customers receive access to a 24-hour environmental emergency response facility operated by OHES Environmental as standard. A UK-wide network of Level 2 spillage responders – giving customers advice at the scene of the incident – is available, with experienced personnel always on call.  Subsequently, a specialist environmental team can be rapidly deployed to co-ordinate remediation activities and provide on-site advice. For larger incidents, a Level 3 response is provided enabling emergency clean-up response to be mobilised.  The team holds a national database of pre-screened, accredited specialist contractors to facilitate the quickest and most effective response for any emergency. The network is activated on a daily basis and handles over 900 projects a year. “Through listening to our clients and trade partners, we have continued to evolve and innovate our insurance offering.  In this fast moving industry OAMPS prides itself in keeping ahead to make clients lives easier,” explained Ros. Consequently, OAMPS has updated policy covers to include automatic occupational personal accident insurance for employees, and removed the hassle at claim time by having an ADR approved vehicle recovery partner, in case a tanker should roll. Additionally, the company now provides a Level 1 24-hour specialist advice over the telephone on how to handle emergency situations. In addition to automatically benefitting from the higher level responses, by accessing this service customers can receive a fully integrated incident response system. The incident advisors, who provide authoritative and calm advice, are all chemists with an understanding of supply and transport legislation. www.oamps.co.uk      www.ohes.co.uk  www.24-7response.org

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Investing in the future

Following the acquisition of TDG in March 2011, global logistics firm Norbert Dentressangle has gone from strength to strength. The company recently reported an increase of 9.9% in consolidated revenues for the first 9 months of 2012, compared to the same period in 2011 Liz Boardman met with Ann Dawson, managing director of the company’s UK tanker division to find out more about the integration of TDG and its plans for the future. Seamlessly acquired Ann was working for TDG at the time of the acquisition and believes it was an extremely positive step, seamlessly undertaken: “Norbert Dentressangle has extensive experience with acquisitions and as a result, the integration went well and was quick, one of quickest in the industry. We shared a similar customer base and had the same values, and great pains were taken to ensure that both Norbert Dentressangle and TDG employees always felt part of the same team. It was the best thing that could have happened.” UK operations With around 30 fuel bases across the UK, stretching from Inverness to Plymouth and everywhere in between, Norbert Dentressangle is well placed to serve companies such as Murco and Tesco, who have been customers for more than twenty years. At present, the company does not undertake any contracts for distributors, but would be keen to develop this area of the business. The company currently operates a fleet of nearly 200 fuel tankers in the UK, which includes its customers’ vehicles. As part of the move from TDG, the company is undertaking an aggressive replacement plan. By the end of 2013, at least 40% of the company’s vehicles will be sporting the distinctive red and white Norbert Dentressangle livery. “All new equipment is branded up as Norbert Dentressangle but existing equipment will only be rebranded when it is replaced,” explained Ann. Tankers are regularly replaced on a rolling basis, in line with the Group’s procurement strategy. The Group has an agreement in place with Renault but has also used MAN and Magyar on occasion. Driving safety With 395 drivers working in fuels alone, health and safety is top priority for the firm. Norbert Dentressangle also employs a large number of multi-skilled drivers who work across various areas of the business. Depending on customer requirements, drivers will move from areas such as powder to gas or chemicals to fuels etc, and must all be highly trained. The company carries out regular toolbox talks and takes driver training very seriously. It was no surprise to discover that Norbert Dentressangle is well on track as the CPC deadline approaches, with drivers having at least one day of training each year. “In terms of training, we are at the top end of our industry,” said Ann. “All of our training is carried out internally by JAUPT accredited trainers, as part of our Safe Driver Plan. We also actively manage and audit our subcontractors. The time and resource invested in this area of the business is borne out by our OCRS scores and accident/RIDDOR statistics.” Future success “Fuels is a market we work very well in,” commented Ann. “We’re ambitious and have a desire to grow our national presence and win new contracts.” It’s been a good year for the company. ”The team is working very hard and very well, and we’re exceeding the expectations of customers not just in fuels, but in all of our other markets. We are actively growing the gas and chemicals side of the business. Our long-term plan is to remain in the market, be successful and grow – which we believe is the right approach.” With a steadily growing workforce, investing in people is also key for Norbert Dentressangle. “We’re very lucky to have a stable management team, with a wealth of industry experience. We may not be the sexiest industry but we are attracting a lot of young people to the company. We operate a good graduate recruitment scheme and are actively recruiting now.” And it’s not just graduates. The company recruits at all levels including school leavers and is always on the lookout for fresh, keen individuals.

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A legacy of diversity

Judith Stoddard Stoddards had a proud history of seizing changes when faced by challenges. Alex Porter spoke to Company Director, Judith Stoddard, about continuing that heritage into a changing landscape, and keeping things simple. Were it not for a willingness to take a risk, Stoddards might not be in the oil business today. Before beginning life as a Jet distributor in 1966, Judith’s grandfather, Percy Stoddard, had been working with coal for forty years. In 1926 he acquired his first motorised vehicle, replacing a horse and cart for deliveries, and the company got the first glimpse of its future. Just after the war, when heavy rationing had made coal less stable, Percy expanded to include a coach business. Buying fuel for the vehicles led him into contact with a local Jet representative, who was looking for an authorised distributor in the area. Quick to jump at an opportunity, Percy shook hands on it, and took a chance on selling oil. Now run by Judith, her brother Pete, and cousin Paul, that philosophy continues to serve the modern Stoddards well. Judith said: “The industry is changing all the time, and we’re always looking for something new, and ready for more opportunities. I enjoy my job every day, and consider myself very lucky to work with a great bunch of people.” The company has distinct divisions, as the profitable coach business is run from the same site in Cheadle, Staffordshire as the fuel side. The company’s 11 staff work across both aspects, and the number is boosted by retired staff who continue to help out as needed.  The longest serving member staff started with Stoddards at 14 and still works there part time at 67. Judith’s father, Brian still pops into the office regularly to catch up on business affairs. She said: “He likes to check everyone has arrived for work, including me!”Quality assurance Standard of fuel remains one of the most important factors, which is why Stoddards is still supplied by Phillips 66 today – being one of their oldest distributors,  and draws most of its fuel from Bramhall.   Judith said: “We have an excellent relationship with Phillips 66 and we are proud to be part of the brand.” During the winter, the large majority of customers are in the domestic sector, apart from a few large commercial orders. The quality of kerosene in particular is therefore vital, as it makes up 80% of the company’s fuel orders, with 15% being gas oil and 5% diesel. Judith explained: “In this area, which is very rural, there are a high proportion of AGAs and similar equipment, so a quality product is essential.” The company owns four tankers, composed of three rigids and an artic supplied by RTN, to serve a 30 mile radius across the North Staffordshire area, Peak District and South Manchester. On site, there are four oil tanks which can store 52,000 litres each.Price the priority The biggest challenge for the modern business is the increasing issue of customer loyalty. For some, a quality product and excellent service has fallen down the priority list when compared to even a small saving on price. “It is understandable. It’s the way we live now, encouraged by the internet. Customers are so conscious of price, that 0.02 pence per litre can lose you business. When you spell out to people that the saving is just £2, some realise that our excellent customer service is cheap, but people can be very shortsighted. Unfortunately the internet doesn’t have the personal touch, we are encouraged to communicate more via numerous media but one-to-one conversation seems to becoming more infrequent. But that’s where we are.” Keen to keep up, the company recently updated the computer system, supplied by IMS, so that drivers can deliver more efficiently and invoices can be sent quickly in a more cost effective manner. “We’re up to date with the back office, but need to embrace the internet and social media a lot more. The coach side caters to more elderly customers but they too love the internet – recently a lady of around 70 asked me to put the coach trips on twitter, whilst another asked if we were on ‘face box’!”Pub talk? As the spectre of alternative technologies and the Renewable Heat Incentive (RHI) begins to grow on the horizon, Judith admitted: “The RHI will affect us. You can see it already – there are now lots of people with solar panels, myself included. It has started with electricity and will filter down, but it will take a while because we have to get it right. “I can’t see it being too significant in the next five years though, because people replace boilers when they break down. You’ve also got to go to someone you can trust, because potentially you could be ripping out a perfectly good oil system for a ground source heat pump which might not work, or an air source heat pump which simply isn’t up to the job. “I went to the Oil & Renewable Energy Show in Manchester recently and felt some of the suppliers didn’t have confidence in the new technology. We will do something with renewables but only once there is a definite answer. At the moment, the goalposts keep moving too frequently. “It’s all just pub talk – there are lots of misconceptions, and customers need a place to go where they can get good impartial advice, along with a complete range of proven products.” Judith has always been unfazed by operating as a fuel distributor in a world once dominated by men. “I had an unbiased mentor. When I first started attending West Midlands FPS meetings some thought I was there to make the tea –but after tasting it they never bothered again!” But Stoddards remains focused and confident about the future. “Really, it’s very simple – give the customers what they want!”