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Day: 27 September 2021

25% of electric Toyota FLTs are Lithium-ion

Posted on by David Priestman

Nearly a quarter of all Toyota electric-powered forklift trucks ordered for delivery in the UK now feature Lithium-ion battery technology.

“While lead acid remains by far the dominant battery type within the electric-powered forklift market, sales of Lithium-ion forklifts have been on a sustained upward curve for some time,” says Gary Ison, Sales Training & Product Development Manager at Toyota  Material Handling UK.

“Lead acid batteries have been a highly capable forklift power solution for years, and it is estimated that in the region of 90% of all electric forklifts in operation throughout the world are still running on these battery types. But Lithium-ion battery technology is now seen as the next evolution in forklift efficiency.”

Lithium-ion’s share of the electric forklift market is widely expected to proliferate significantly over the next five years with a report recently undertaken by India-based analyst, Research Dive, forecasting that the global Lithium-ion forklift battery market will be worth close to US$1,348.5m by 2026.

Gary Ison says: “Over the last decade or so, electric-powered forklifts have become an increasingly popular choice for businesses across all industry sectors who find themselves under growing social and legislative pressure to operate in as environmentally sensitive way as they can.

“Traditionally, electric lift trucks have relied on lead-acid battery technology but the Lithium-Ion solution has now become well established as a viable alternative. Today, in the right applications, Lithium-ion is revolutionising the way some companies operate their intralogistics processes.”

Growth in the Lithium-ion powered forklift market is being driven by a number of factors, not the least of which are the energy efficiency benefits and savings on fleet running costs that Lithium-ion offers.

But of equal significance are the advances in both battery and charger technology that have alleviated the health and safety issues that, for a while, were linked with Lithium-ion  batteries following a number of high profile fires at industrial buildings reportedly started by malfunctioning Lithium-ion batteries.

“There is no doubt that, some of the problems experienced by the early adopters of Lithium-ion battery technology made people cautious, but the science has moved on and it is easy to understand why more and more electric truck users are interested in Lithium-ion,” says Gary Ison.

He continues: “Lithium-ion batteries have the ability to be recharged in as little as one hour – which increases a truck’s overall availability. One hour’s charging will give in the region of 4 to 5 hours of operating time. Also, as these batteries allow for opportunity charging, trucks can be recharged anywhere by the operator during breaks in a shift or other periods of downtime. As a result, there is no need to swap batteries – so dedicated charging rooms and spare batteries aren’t necessary.”

Lithium-ion’s quick and easy opportunity charging functionality means that Lithium-ion battery fleets are most beneficial at sites where trucks are working at high intensity over multiple shifts or extended periods.

“Lithium-ion’s suitability as a power source for lift trucks is not driven by the number of forklifts in operation at a site but by the intensity of their schedule. A company that runs one reach truck 24 hours-a-day will benefit from switching to Lithium-ion batteries while a facility with a dozen machines that are used for light duties from 9-to-5 would commercially probably still be better served by trucks powered by lead acid batteries,” explains Gary Ison.

Infrastructural considerations

“But,” he cautions, “at any multi-shift operation with a high number of trucks working it is essential to manage and schedule operator break periods and consider the scenario where several trucks are ‘plugged in’ for recharging at the same time.

“This is because during the shorter ‘opportunity’ recharging process a Lithium-ion  battery can draw down up to four times the power from the National Grid than that which is needed to charge a traditional lead-acid battery over 8 – 12 hours.

Gary Ison continues: “If charging schedules are not properly managed and too many Lithium-ion  batteries are on charge at the same time there is risk that a building’s power supply could be overloaded.

“At Toyota we advise customers considering switching to Lithium-ion to speak to their utilities provider to flag up any potential power supply issues from the outset. But good charging discipline will deliver the consistent power levels required to allow the trucks to work around the clock – even within the most demanding environments.

“At Toyota we employ bespoke simulation software that enables us to consider all aspects of a client’s operation from the outset and model the optimum choice of battery and battery charging regime for any facility. From there we can advise on power requirements and help customers considering switching to Lithium-ion batteries to look at the bigger picture when assessing Lithium-ion batteries’ suitability for an application

“So, if you are considering switching to Lithium-ion, make sure your MHE supplier really understands your business and undertakes a thorough survey of your handling operation as well as – most importantly – the infrastructure of your site.

“With Lithium-ion offering so many benefits it is easy to forget that, for some users, the traditional lead acid battery will still represent the best option. Our pride in the Toyota brand means that we will always provide the right power solution for every electric truck application. It doesn’t matter if it’s Lithium-ion or lead acid – as long as it’s right for the customer.”

Reach trucks are Lithium-ion ready

The first three models in Toyota’s recently-launched BT Reflex family of reach trucks – the high-performance R-series, the E-series (which features Toyota’s iconic and unique tilting cab) and the flexible O-series for inside and outside use – are  all Lithium-ion ready.

The new trucks come with a choice of three intelligent energy packages to suit every customer’s application requirements: a 300 amp/hour battery for lighter duties; a 420 amp/hour battery for medium intensity work; and a 630 amp/hour solution for high intensity workhorses. All three packages are based on Toyota’s own modular Lithium-ion battery system and deliver a high degree of operational flexibility.

25% of electric Toyota FLTs are Lithium-ion

Posted on by David Priestman

Nearly a quarter of all Toyota electric-powered forklift trucks ordered for delivery in the UK now feature Lithium-ion battery technology.

“While lead acid remains by far the dominant battery type within the electric-powered forklift market, sales of Lithium-ion forklifts have been on a sustained upward curve for some time,” says Gary Ison, Sales Training & Product Development Manager at Toyota  Material Handling UK.

“Lead acid batteries have been a highly capable forklift power solution for years, and it is estimated that in the region of 90% of all electric forklifts in operation throughout the world are still running on these battery types. But Lithium-ion battery technology is now seen as the next evolution in forklift efficiency.”

Lithium-ion’s share of the electric forklift market is widely expected to proliferate significantly over the next five years with a report recently undertaken by India-based analyst, Research Dive, forecasting that the global Lithium-ion forklift battery market will be worth close to US$1,348.5m by 2026.

Gary Ison says: “Over the last decade or so, electric-powered forklifts have become an increasingly popular choice for businesses across all industry sectors who find themselves under growing social and legislative pressure to operate in as environmentally sensitive way as they can.

“Traditionally, electric lift trucks have relied on lead-acid battery technology but the Lithium-Ion solution has now become well established as a viable alternative. Today, in the right applications, Lithium-ion is revolutionising the way some companies operate their intralogistics processes.”

Growth in the Lithium-ion powered forklift market is being driven by a number of factors, not the least of which are the energy efficiency benefits and savings on fleet running costs that Lithium-ion offers.

But of equal significance are the advances in both battery and charger technology that have alleviated the health and safety issues that, for a while, were linked with Lithium-ion  batteries following a number of high profile fires at industrial buildings reportedly started by malfunctioning Lithium-ion batteries.

“There is no doubt that, some of the problems experienced by the early adopters of Lithium-ion battery technology made people cautious, but the science has moved on and it is easy to understand why more and more electric truck users are interested in Lithium-ion,” says Gary Ison.

He continues: “Lithium-ion batteries have the ability to be recharged in as little as one hour – which increases a truck’s overall availability. One hour’s charging will give in the region of 4 to 5 hours of operating time. Also, as these batteries allow for opportunity charging, trucks can be recharged anywhere by the operator during breaks in a shift or other periods of downtime. As a result, there is no need to swap batteries – so dedicated charging rooms and spare batteries aren’t necessary.”

Lithium-ion’s quick and easy opportunity charging functionality means that Lithium-ion battery fleets are most beneficial at sites where trucks are working at high intensity over multiple shifts or extended periods.

“Lithium-ion’s suitability as a power source for lift trucks is not driven by the number of forklifts in operation at a site but by the intensity of their schedule. A company that runs one reach truck 24 hours-a-day will benefit from switching to Lithium-ion batteries while a facility with a dozen machines that are used for light duties from 9-to-5 would commercially probably still be better served by trucks powered by lead acid batteries,” explains Gary Ison.

Infrastructural considerations

“But,” he cautions, “at any multi-shift operation with a high number of trucks working it is essential to manage and schedule operator break periods and consider the scenario where several trucks are ‘plugged in’ for recharging at the same time.

“This is because during the shorter ‘opportunity’ recharging process a Lithium-ion  battery can draw down up to four times the power from the National Grid than that which is needed to charge a traditional lead-acid battery over 8 – 12 hours.

Gary Ison continues: “If charging schedules are not properly managed and too many Lithium-ion  batteries are on charge at the same time there is risk that a building’s power supply could be overloaded.

“At Toyota we advise customers considering switching to Lithium-ion to speak to their utilities provider to flag up any potential power supply issues from the outset. But good charging discipline will deliver the consistent power levels required to allow the trucks to work around the clock – even within the most demanding environments.

“At Toyota we employ bespoke simulation software that enables us to consider all aspects of a client’s operation from the outset and model the optimum choice of battery and battery charging regime for any facility. From there we can advise on power requirements and help customers considering switching to Lithium-ion batteries to look at the bigger picture when assessing Lithium-ion batteries’ suitability for an application

“So, if you are considering switching to Lithium-ion, make sure your MHE supplier really understands your business and undertakes a thorough survey of your handling operation as well as – most importantly – the infrastructure of your site.

“With Lithium-ion offering so many benefits it is easy to forget that, for some users, the traditional lead acid battery will still represent the best option. Our pride in the Toyota brand means that we will always provide the right power solution for every electric truck application. It doesn’t matter if it’s Lithium-ion or lead acid – as long as it’s right for the customer.”

Reach trucks are Lithium-ion ready

The first three models in Toyota’s recently-launched BT Reflex family of reach trucks – the high-performance R-series, the E-series (which features Toyota’s iconic and unique tilting cab) and the flexible O-series for inside and outside use – are  all Lithium-ion ready.

The new trucks come with a choice of three intelligent energy packages to suit every customer’s application requirements: a 300 amp/hour battery for lighter duties; a 420 amp/hour battery for medium intensity work; and a 630 amp/hour solution for high intensity workhorses. All three packages are based on Toyota’s own modular Lithium-ion battery system and deliver a high degree of operational flexibility.

Drivers shortage fix “will please no one”

Posted on by David Priestman

Delivery expert ParcelHero is warning that the Government’s decision to allow just 5,000 foreign drivers into the UK is a compromise that has infuriated Brexiteers while doing nothing to plug the shortfall of 100,000 drivers.

The Government’s faint-hearted decision to grant just 5,000 temporary UK visas to foreign lorry drivers will do more harm than good, warns ParcelHero.

The delivery company’s Head of Consumer Research, David Jinks M.I.L.T., says: “The decision to take the plunge and beg for EU-based drivers to return to Britain, but then cap their number at 5,000, will please absolutely no one. 5,000 drivers are less than the paltry number of poultry workers (5,500) the Government has also invited back because it couldn’t see a Christmas turkey shortage coming. Brexiteer ministers are foaming at the mouth at the news any EU drivers will be returning, while retailers and logistics bosses are howling that the move is far too little, far too late.

“Other panic measures revealed over the weekend, such as using Ministry of Defence examiners to increase HGV testing capacity, will also do little to fix the immediate problem. And the plan to send a million letters to former drivers who hold an HGV licence, begging them to get back in the cab, is frankly astonishing.

“The driver shortage has now led to a fuel crisis. The Government’s suspension of the competition law, to allow fuel companies to target specific petrol stations, is another sticking plaster that won’t stop the bleeding. Tanker drivers are the elite airline pilots of road haulage; these skilled drivers are trained and tested continually. You cannot let a newly-qualified lorry driver take over the wheel of a petrol tanker, especially after the Government recently dumbed down the HGV driver’s test.

“After most ‘non-skilled’ EU citizens returned to their home countries in the wake of the Brexit vote, we warned the Government of a shortfall of up to 100,000 drivers. Those warnings fell on deaf ears. The UK’s entire logistics network is consequently on the verge of a major crisis. The Government may think it has stuck its finger in the dyke in the nick of time and stopped the flood of shortages. In fact, the UK’s supply-chain is now riddled with holes, and unless the Government makes the package to EU drivers vastly more attractive, Christmas shortages are now a certainty.

“We agree the driver crisis is not entirely a problem created by Brexit. There is a shortage across Europe, but Brexit has doubled the impact of the problem for the UK. Furthermore, the driver shortage is just the tip of the iceberg in terms of the impact of Brexit on the UK’s freight infrastructure.”

ParcelHero’s in-depth analysis of the ongoing UK-EU trade problems and, in particular, the powder keg Northern Ireland Protocol agreement, can be seen by clicking here.

Drivers shortage fix “will please no one”

Posted on by David Priestman

Delivery expert ParcelHero is warning that the Government’s decision to allow just 5,000 foreign drivers into the UK is a compromise that has infuriated Brexiteers while doing nothing to plug the shortfall of 100,000 drivers.

The Government’s faint-hearted decision to grant just 5,000 temporary UK visas to foreign lorry drivers will do more harm than good, warns ParcelHero.

The delivery company’s Head of Consumer Research, David Jinks M.I.L.T., says: “The decision to take the plunge and beg for EU-based drivers to return to Britain, but then cap their number at 5,000, will please absolutely no one. 5,000 drivers are less than the paltry number of poultry workers (5,500) the Government has also invited back because it couldn’t see a Christmas turkey shortage coming. Brexiteer ministers are foaming at the mouth at the news any EU drivers will be returning, while retailers and logistics bosses are howling that the move is far too little, far too late.

“Other panic measures revealed over the weekend, such as using Ministry of Defence examiners to increase HGV testing capacity, will also do little to fix the immediate problem. And the plan to send a million letters to former drivers who hold an HGV licence, begging them to get back in the cab, is frankly astonishing.

“The driver shortage has now led to a fuel crisis. The Government’s suspension of the competition law, to allow fuel companies to target specific petrol stations, is another sticking plaster that won’t stop the bleeding. Tanker drivers are the elite airline pilots of road haulage; these skilled drivers are trained and tested continually. You cannot let a newly-qualified lorry driver take over the wheel of a petrol tanker, especially after the Government recently dumbed down the HGV driver’s test.

“After most ‘non-skilled’ EU citizens returned to their home countries in the wake of the Brexit vote, we warned the Government of a shortfall of up to 100,000 drivers. Those warnings fell on deaf ears. The UK’s entire logistics network is consequently on the verge of a major crisis. The Government may think it has stuck its finger in the dyke in the nick of time and stopped the flood of shortages. In fact, the UK’s supply-chain is now riddled with holes, and unless the Government makes the package to EU drivers vastly more attractive, Christmas shortages are now a certainty.

“We agree the driver crisis is not entirely a problem created by Brexit. There is a shortage across Europe, but Brexit has doubled the impact of the problem for the UK. Furthermore, the driver shortage is just the tip of the iceberg in terms of the impact of Brexit on the UK’s freight infrastructure.”

ParcelHero’s in-depth analysis of the ongoing UK-EU trade problems and, in particular, the powder keg Northern Ireland Protocol agreement, can be seen by clicking here.

Regional Express moves to new Southampton DC

Posted on by David Priestman

Xpediator, a leading provider of freight management services across the UK and Central, Eastern and Western Europe, has announced that its subsidiary, Regional Express, is moving from its current premises to join sister company, Delamode International Logistics, at its new 200,000 sq ft distribution centre located at Southampton container port.

Regional Express is a one-stop service for Amazon sellers in the UK, US and Europe with services including VAT registrations and tax filing, customs clearance, returns, fulfilment and warehousing. The move to the new warehouse is part of the overall integration of the Group’s UK logistics operations. Regional Express will operate alongside Delamode International Logistics in the new state of the art warehouse which will help the business meet rising demand from Amazon sellers for its services through the additional space and facilities now available.

Completed earlier this year, the new warehouse is designed to BREEAM Excellent Sustainability Standards and is primarily powered by renewable energy via a £2.5m roof-mounted solar panel installation, believed to be one of the largest in the UK. The move into the new warehouse will increase Regional Express’ pallet space capacity, whilst providing increased efficiencies in stock intake, order processing and speed to market, direct to the point of demand.

In addition, Regional Express will be able to offer bonded and buffer storage for Amazon sellers, enabling them to send larger quantities in one shipment to the UK reducing the overall unit cost. Smaller shipments, in line with the unit limits set by Amazon, can then be sent to Amazon warehouses in the UK and the remaining stock held at the new warehouse for stock replenishment as required.

Robert Ross, CEO of Xpediator, said: “As an approved supplier to the Amazon Solution Provider Network (SPN), Regional Express is well positioned to fulfil all logistical requirements for Amazon sellers. Regional Express performed strongly in 2020, and the move into the new Southampton warehouse will enhance its capabilities for Amazon sellers as well as become a point of differentiation for attracting new clients.”

Neil Curran, Managing Director of Regional Express, commented: “Moving to the new Southampton warehouse has multiple advantages for our business not only in terms of additional capacity and layout but also in terms of being located within the port itself, as this will lead to much faster stock intake and order processing times which will culminate into faster delivery times for our customers.”

similar news

Xpediator integrates and rebrands UK logistics division

 

Regional Express moves to new Southampton DC

Posted on by David Priestman

Xpediator, a leading provider of freight management services across the UK and Central, Eastern and Western Europe, has announced that its subsidiary, Regional Express, is moving from its current premises to join sister company, Delamode International Logistics, at its new 200,000 sq ft distribution centre located at Southampton container port.

Regional Express is a one-stop service for Amazon sellers in the UK, US and Europe with services including VAT registrations and tax filing, customs clearance, returns, fulfilment and warehousing. The move to the new warehouse is part of the overall integration of the Group’s UK logistics operations. Regional Express will operate alongside Delamode International Logistics in the new state of the art warehouse which will help the business meet rising demand from Amazon sellers for its services through the additional space and facilities now available.

Completed earlier this year, the new warehouse is designed to BREEAM Excellent Sustainability Standards and is primarily powered by renewable energy via a £2.5m roof-mounted solar panel installation, believed to be one of the largest in the UK. The move into the new warehouse will increase Regional Express’ pallet space capacity, whilst providing increased efficiencies in stock intake, order processing and speed to market, direct to the point of demand.

In addition, Regional Express will be able to offer bonded and buffer storage for Amazon sellers, enabling them to send larger quantities in one shipment to the UK reducing the overall unit cost. Smaller shipments, in line with the unit limits set by Amazon, can then be sent to Amazon warehouses in the UK and the remaining stock held at the new warehouse for stock replenishment as required.

Robert Ross, CEO of Xpediator, said: “As an approved supplier to the Amazon Solution Provider Network (SPN), Regional Express is well positioned to fulfil all logistical requirements for Amazon sellers. Regional Express performed strongly in 2020, and the move into the new Southampton warehouse will enhance its capabilities for Amazon sellers as well as become a point of differentiation for attracting new clients.”

Neil Curran, Managing Director of Regional Express, commented: “Moving to the new Southampton warehouse has multiple advantages for our business not only in terms of additional capacity and layout but also in terms of being located within the port itself, as this will lead to much faster stock intake and order processing times which will culminate into faster delivery times for our customers.”

similar news

Xpediator integrates and rebrands UK logistics division

 

Riders back in the saddle for Transaid

Posted on by Keith McKinley

A team of more than 30 riders from across the transport and logistics industry have completed the 170-mile ‘Way of the Roses’ challenge, cycling from Morecambe, Lancashire to Bridlington in the East Riding of Yorkshire, to raise money for Transaid, the international development organisation.

The epic coast-to-coast route was completed over two days on Friday 24th and Saturday 25th September, so far raising an estimated £29,000 to support Transaid’s life-saving work to improve road safety and access to healthcare in sub-Saharan Africa.

Florence Bearman, Head of Fundraising at Transaid, and one of the riders taking part in the event, said: “We have been waiting a long time to get back in the saddle for one of our cycle challenges, and after having to cancel several events during the pandemic, it was fantastic to finally be back on our bikes and raising money.

“A huge thank you to everyone who took part; particularly for smashing our fundraising expectations, and for the true grit and determination shown on the steep ascent between Settle and Brimham Rocks!”

The cyclists taking part represented around 20 companies from across the industry, including headline sponsor UK Warehousing Association (UKWA), and support sponsors PF Whitehead, Stanley Travel and TRS Tyres. Riders were also fielded from firms including ABE Ledbury, Alpine Travel, Backhouse Jones, BigChange, Bowker Group, Burton’s Biscuit Company, DHL Supply Chain, Goodyear, Go South Coast, Innovate 360, Johnsons Coach and Bus Travel, LDH (La Doria), Leica Biosystems, Marks & Spencer, Xpediator PLC and Z-Tech Control Systems.

Transaid now has its sights set on a return to international challenges with Cycle Malawi 2022 – which will see a team of more than 40 riders cover around 500km over five days, taking in the stunning Lake Malawi, Mount Mulanje, Liwonde National Park and the Zomba Plateau. 44 riders have already signed up, with just a handful of places still remaining. Revised dates for the event – postponed from 2021 – will be announced soon.

Riders back in the saddle for Transaid

Posted on by David Priestman

A team of more than 30 riders from across the transport and logistics industry have completed the 170-mile ‘Way of the Roses’ challenge, cycling from Morecambe, Lancashire to Bridlington in the East Riding of Yorkshire, to raise money for Transaid, the international development organisation.

The epic coast-to-coast route was completed over two days on Friday 24th and Saturday 25th September, so far raising an estimated £29,000 to support Transaid’s life-saving work to improve road safety and access to healthcare in sub-Saharan Africa.

Florence Bearman, Head of Fundraising at Transaid, and one of the riders taking part in the event, said: “We have been waiting a long time to get back in the saddle for one of our cycle challenges, and after having to cancel several events during the pandemic, it was fantastic to finally be back on our bikes and raising money.

“A huge thank you to everyone who took part; particularly for smashing our fundraising expectations, and for the true grit and determination shown on the steep ascent between Settle and Brimham Rocks!”

The cyclists taking part represented around 20 companies from across the industry, including headline sponsor UK Warehousing Association (UKWA), and support sponsors PF Whitehead, Stanley Travel and TRS Tyres. Riders were also fielded from firms including ABE Ledbury, Alpine Travel, Backhouse Jones, BigChange, Bowker Group, Burton’s Biscuit Company, DHL Supply Chain, Goodyear, Go South Coast, Innovate 360, Johnsons Coach and Bus Travel, LDH (La Doria), Leica Biosystems, Marks & Spencer, Xpediator PLC and Z-Tech Control Systems.

Transaid now has its sights set on a return to international challenges with Cycle Malawi 2022 – which will see a team of more than 40 riders cover around 500km over five days, taking in the stunning Lake Malawi, Mount Mulanje, Liwonde National Park and the Zomba Plateau. 44 riders have already signed up, with just a handful of places still remaining. Revised dates for the event – postponed from 2021 – will be announced soon.

Semiconductor crisis “not peaked yet”

Posted on by Keith McKinley

The crisis caused by a semiconductor shortage has affected in particular automotive and technology sectors, with several prominent businesses forced to slow or cease production. But according to Andrew Austin, Group Operations Director at Priority Freight, the peak of the crisis has not yet been met and its effect on the logistics sector has not yet been fully felt.

“The widespread effect of the semiconductor crisis on the automotive sector has been well documented of late, with many manufacturers halting production or altering vehicle specs in response to the shortage,” says Andrew Austin.

“Similarly, the increase in demand for laptops and gaming consoles as people were all stuck working, and playing, from home created a reduced availability of consumer electronics. Some economists are even predicting that the shortage of semiconductors will affect food prices as farmers are less able to rely on smart tech and revert to manual processes. Other consumer electronics that may not have peaked in demand will still increase in price as the semiconductor shortage extends its reach and items become scarce.

“It is easy to understand how the semiconductor shortage has affected the products that directly rely on them to function, but what about the logistics sector in control of moving this electronic life source around the world? I fear we are yet to see the true impact of this crisis on our industry.

“The lead time to produce semiconductors can be anything between six and 18 months. Although it has been suggested that many OEMs could solve the problem in the long-term by manufacturing their own semiconductors, this is an unlikely solution that would drive up prices for the consumer.

“As the demand for electric transport increases, so too does the need for more semiconductors. An electric car uses many more than its combustion engine equivalent and, considering automotive semiconductor production is only 15% of the global output, it’s already a limited resource. The shortage has affected the automotive industry more than most because the sector traditionally operates with very lean supply chains. Another suggested, but unlikely, solution is that the automotive sector will move away from the just-in-time manufacturing model that has come under scrutiny of late.

“However, it is exactly this that allows automotive manufacturers to keep competition high and prices low. Many automotive plants are remote, and their ability to receive and store large quantities of materials will always be compromised, so, for many, a lean inventory will remain the norm. For the automotive sector, the semiconductor crisis is predicted to continue beyond 2022.

“Consider for a moment that semiconductor production was hit by the first factory shutdowns 18 months ago. This is the same lead-time needed to produce semiconductors from scratch, and conjecture is that the recovery period is imminent. Under ‘normal’ circumstances, manufacturers would rely on the cheaper, but longer, lead-times of sea crossings for their semiconductors but, given the pent-up demand, most will turn to air freight in an attempt to expedite production and recoup costs. This will put added strain on the already restricted air sector as belly capacity remains low.

“But it’s not just air freight that continues to suffer. Port congestion and the international driver shortage are affecting sea and road solutions globally. While pent up demand will benefit the freight industry financially, as the increased demand against a paucity of supply will cause rate escalation, it will also bring frustration with the lack of available capacity to match the prevailing demand. In addition, COVID-19 is still causing staff shortages and closures across all modes of transport, and there remains a vast and unpredictable variation between countries dictated by transmission rates.

“These conflicting and unpredictable factors, combined with the existing lack of capacity and the huge seasonal surge around Christmas, will affect the logistics sector the most. If any of these pieces that make up the jigsaw of the supply chain were within our control, the outlook would be more optimistic. At present, it’s not a matter of avoiding any negative impact on the industry but instead trying to reduce the size and gravity of that impact. “

Andrew Austin has spent his entire career in the logistics industry. With over three decades of experience in senior management and board level positions across diverse, international locations, he is responsible for leading and developing the operations mission within Priority Freight.

 

UK chilled haulier collapses into administration

Posted on by Keith McKinley

Logistics company EVCL Chill, the cold-chain subsidiary of the EV Cargo Group, has fallen into administration. PwC has been appointed as the administrator of EVCL Chill Ltd, EVCL One Limited, EVCL Two Limited and EVCL Three Limited. The current driver shortage affecting the UK was cited as one of the reasons for the company’s failure.

EVCL Chill operates primarily in the chilled food logistics market, storing and delivering products for a number of retail customers – including Sainsbury’s and Asda – and suppliers to the UK food retail market. Headquartered in Alfreton, Derbyshire, the business employs 1,092 full-time employees operating from warehouses and depots in key locations across the UK including, Daventry, Alfreton, Rochdale, Crick, Bristol, and Penrith.

EVCL Chill was formerly known as NFT Distribution and purchased by investment firm EmergeVest in 2014. In 2016 NFT Distribution acquired chilled food and drink 3PL NR Evans.

The business operates 374 trucks and 432 trailers across its transport network, alongside more than 20,000 pallets of warehousing capacity, servicing blue-chip food retailers and manufacturers nationwide.

In the period to December 2020, turnover at the business exceeded £167m and was cash generative. However, EVCL Chill has struggled with a loss of a number of key customers and acute driver shortages during 2021 which given its fixed cost base, created significant liquidity challenges. A number of sale options were explored but generated limited interest and management took the difficult decision to enter administration.

658 roles and a number of services have been transferred to key customers under their contractual arrangements, which provides continuity for parts of EVCL Chill and those customers. The administration does not affect other businesses within the wider EV Cargo Group, which continue to trade as before.

Eddie Williams, joint administrator at PwC, said: “This has been a very difficult situation and involved intense discussions with key stakeholders on an accelerated basis to get to this position. As businesses move from survival mode to recovery, the financial climate is still very volatile.

“I am pleased that at least 658 roles will continue in a sector that is already facing many difficulties and challenges around inventory, personnel and the wider supply chain. Some vital continuity and stability has been ensured for a number of EVCL Chill’s stakeholders.

“We will continue to fully support all affected staff members during this difficult time.”

Creditors mentioned by the administrator include HMRC, the UK’s tax office.

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