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Month: January 2025

LogiDrive System Adapted for Intralogistics

Posted on by David Priestman

At the international specialist trade fair for intralogistics solutions and process management LogiMAT, NORD DRIVESYSTEMS will present its product portfolio from 11 to 13 March 2025. In Hall
3, Stand 3C41, visitors can find out more about the efficient, reliable and flexible drive solutions from the system supplier’s modular products as well as about further services – while benefitting from the expertise of a drive expert.

Reliable drives with sufficient power are required in intralogistics. The LogiDrive solution space from NORD offers user-friendly and easy-to-integrate drive systems for the post & parcel, airport and warehouse sectors, which are characterised by their low weight and compact installation space. They have all international certifications and can therefore be used worldwide.

LogiDrive variants– Advanced and Basic

LogiDrive Advanced consists of the high-efficiency IE5+ synchronous motor, the NORDAC ON+ and a gear unit from NORD, and was optimised in terms of energy efficiency. The high efficiency over a large speed and load range enables variant reduction for more streamlined processes and reduced administration and warehousing costs, which is particularly of advantage for large systems with numerous drives and which furthermore reduces downtimes.

LogiDrive Basic consists of an IE3 asynchronous motor, the NORDAC ON and a gear unit from NORD. The components are optimally matched and impress with a large adjustment range. This solution mainly focuses on the acquisition costs.

Decentralised drive electronics

The decentralised NORDAC ON/ON+ frequency inverters are characterised by their compact design, full plug-in capability and high reliability. They also offer PLC functionality for drive-related functions (PLC onboard) and an integrated multi-protocol Ethernet interface. PROFINET, EtherCAT and EtherNet/IP can be set via parameters. The inverters are designed for power ranges from 0.37 kW to 3.7 kW. With their plugand-play function, they provide a maintenance-friendly and economical solution for modern production environments. The NORDAC ON is also intended for integration into PROFIsafe and FSoE environments.

The IE5+ synchronous motors with efficiencies of up to 95 % over a wide torque range also provide optimum efficiency in partial load and partial speed ranges. They surpass the highest defined efficiency class and are characterised by their compact, hygienic design in a very small installation space. Available versions are TENV smooth motor, TEFC motor with cooling fins and integrated DuoDrive geared motor with a power range from 0.35 kW to 4 kW. In the second quarter of 2025, NORD will expand its product portfolio with an additional size.

NORD not only supports its customer with energy-efficient and tailor-made drive systems to reduce the total cost of ownership (TCO) but also with services such as the NORD ECO service to analyse existing systems and reveal potential for saving energy.

Keeping an eye on the drive

In addition, NORD released the third version of its Windows parameterisation software. The software tool is the ideal supplementation to the NORDCON MOBILE-APP for smartphones or tablets.
It offers additional functions for setting up and monitoring drives. A customisable dashboard, a contextsensitive help function and a revised oscilloscope support application-specific control of the drive technology.

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Hybrid Automatic Container Carriers of Oz

Posted on by David Priestman

Victoria International Container Terminal (VICT), International Container Terminal Services, Inc.’s (ICTSI) operation at the Port of Melbourne, has purchased four new hybrid automatic container carriers (ACCs) from Kalmar to expand capacity and reduce emissions.

The new carriers, scheduled for delivery in 2025, will each feature a twin-box lifting capacity of up to 60 tons and Kalmar’s latest hybrid technology with lithium-ion batteries for energy recovery. This technology contributes to a 40 percent increase in energy efficiency and a 50-ton CO2 emission reduction per carrier annually.

“We value our partnership with Kalmar and their technical support,” said Bruno Porchietto, VICT chief executive officer. “These new hybrid carriers are part of our expansion plan, which will increase our capacity to 1.5 million TEUs annually. This investment demonstrates our commitment to customer focus, innovation, and sustainability, ensuring we can meet the growing demand for our services while minimizing our environmental impact.”

VICT is the only fully automated container terminal in the Southern Hemisphere. It operates seven remotely controlled ship-to-shore cranes (five super post-Panamax and two ultra post-Panamax – the largest in Australia), 17 ACCs, and 26 automated stacking cranes (ASCs). All cranes are equipped with energy recovery systems, contributing to the terminal’s energy efficiency and CO2 emission reduction goals.

This investment follows a record year for VICT in 2024, during which it handled its five millionth TEU since opening in 2017. The terminal continues its technological expansion to support its growing customer base.

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Environmental Savings with Sustainable Packaging

Posted on by David Priestman

IFCO, a supplier of reusable packaging solutions for fresh food, achieved record environmental savings with customers in 2024, a year marked by targeted expansion and a series of customer-centric packaging innovations. 2.4 billion shipments of fruit and vegetables, meat and poultry, fish and seafood, dairy and eggs, baked goods, bananas and other fresh grocery products were delivered in IFCO reusable packaging containers (RPCs) during 2024 globally.

In total, by using the IFCO SmartCycle circular pooling system instead of single-use packaging, customers generated the following environmental savings during 2024:

• 674,333 metric tons of CO2e emissions, equivalent to circling the planet 140,344 times by car
• 54,308 megaliters of water, equivalent to 21,723 Olympic size pools
• 14,854 terajoules of energy, equivalent to the annual energy consumption of 746,668 households
• 1,363,131 metric tons of solid waste, equivalent to the solid waste produced by 2.73 million people in a year
• 66,015 tons of product waste, equivalent to 105 million meals

IFCO uses third-party peer-reviewed life cycle assessment (LCA) studies based on ISO 14040/14044 to scientifically quantify the environmental benefits of the IFCO SmartCycle in reducing CO2e emissions, water consumption, energy use and solid waste, as well as other third-party studies to quantify reductions in food loss and food waste. For the eighth year in a row, IFCO is to award customers with an individual IFCO Sustainability Certificate. These science-backed certificates accurately quantify and recognize each customer’s unique contribution to the significant environmental savings achieved through the efficient and food-safe SmartCycle circular pooling system.

Importantly, these certificates allow producers, growers, distributors and retailers to demonstrate their commitment to improving the environmental performance of their supply chains. Customers increasingly use the certificates to showcase their tangible progress toward their own sustainability goals.

Further reductions to the carbon footprint of sustainable packaging

In 2024, a new critically reviewed LCA study commissioned by IFCO, conducted by Fraunhofer IBP and reviewed by a panel under the direction of DEKRA, updated the environmental impacts of reusable packaging containers and cardboard boxes over their full life cycle. Since 2018, IFCO has cut the average carbon footprint of its RPCs by an additional 10%. In addition, the company’s RPCs now generate up to 62% less CO2e emissions compared to single-use packaging, up from 60% in 2018. Comparative LCAs are essential for IFCO’s ESG Strategy, Thriving in the circular economy and help define the decarbonization levers, activities and milestones that support the goals of becoming a net-zero, zero-waste business by 2040.

Greater impact with innovative packaging, digital services and new regions

2024 also saw the launch of new customer-led innovations, including Dora and Nestor, two lightweight, durable plastic pallets, and the Marina Fish Crate, which also expanded the use of IFCO’s integrated tracking systems and proven digital technologies. In addition, IFCO continued to strengthen its market presence in 2024 through strategic acquisitions. For instance, the company acquired BEPCO in the Baltics, allowing more customers to access sustainable packaging solutions through the SmartCycle. Furthermore, the company opened two new state-of-the-art service centres with advanced automation in the UK as well as a new digital hub in the city of Barcelona to enhance supply chain transparency and efficiency.

“Every reusable packaging innovation, every digital solution and every acquisition expands our reach and allows more customers to benefit from our sustainable circular business model, reducing waste and carbon emissions in the process. Working closely together with our customers – producers, growers, distributors and retailers – we are driving impactful change in the global fresh grocery supply chain,” says Iñigo Canalejo, Vice President ESG & Strategic Marketing, IFCO.

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Import Control System 2 Extends to Rail and Road

Posted on by David Priestman

The European Union’s Import Control System 2 (ICS2) aims to enhance the safety and security of goods entering the EU by introducing a standardised, pre-arrival customs process for all transportation modes, including road and rail, in addition to the existing air, maritime and inland waterway requirements. By mandating the submission of accurate and complete Entry Summary Declaration (ENS) data prior to arrival, the ICS2 enables customs authorities to better assess the risks associated with incoming goods, thereby improving the EU’s ability to prevent and combat customs offenses, and ultimately ensuring a safer and more secure trade environment.

From 1 April 2025, road and rail carriers will need to provide data on goods sent to or through the EU prior to their arrival, through a complete ENS. This obligation also concerns postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistics providers. In certain circumstances, final consignees established in the EU will also have to submit ENS data in the ICS2.

Economic operators who are not ready by this date need to contact the National Service Desk of the EU Member State (National Customs Authority) where they have registered and obtained their EORI number to request a deployment window by 1 March 2025, at the latest. Deployment windows are granted only upon request.

To comply with the ICS2 requirements, affected businesses will be required to make sure they collect accurate and complete data from their clients, update their IT systems and operational processes, and provide adequate training to their staff. Economic operators will also need to successfully complete a self-conformance test before connecting to the ICS2, to verify their ability to access and exchange messages with customs authorities. Goods might be stopped at EU borders and might not be cleared by customs authorities if traders do not meet the ICS2 requirements on time.

ICS2 in detail

The ICS2 has been developed through close collaboration between the European Commission, Member States’ customs authorities and businesses. Starting from 1 September 2025, the ICS1 will phase out. The ICS2 will fully replace the ICS1 with an entirely new business process in accordance with the Union Customs Code. The European Commission organises monthly webinars (in English) where economic operators can ask questions about the operational and technical aspects of the ICS2. The next webinar is scheduled for 5 February 2025.

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Increase in BigBox Take Up in 2024

Posted on by Will Priestman

New analysis by Avison Young of the industrial and logistics sector highlights a notable rebound in the take-up of grade A big-box distribution units over 100,000 sq ft in 2024, with a total of 21.2 million sq ft leased throughout the year, an 11% increase from 2023. Despite remaining 33% below the five-year average – a comparison skewed by exceptional demand during the global pandemic – improving occupier sentiment and a surge in deal-making helped push volumes above last year’s levels.

The Midlands, particularly within the ‘Golden Triangle,’ continues to dominate the market, accounting for 42% of all leasing activity in 2024. Prime locations in this area remain a key draw for both occupiers and investors, underlining its status as a hotspot for logistics and distribution activity.

At the close of 2024, grade-A supply stood at 51.6 million sq ft across 220 units, representing a 9% increase from the previous year. Of this, 41% are newly completed speculative units, while 39% are second-hand units and 20% are still under construction. However, a significant shortfall remains in the supply of larger units, particularly mega sheds of 400,000 sq ft and above, with only 10% of the current pipeline meeting this demand.

Investment in single-let big-box distribution units saw a dip in 2024, with total spending amounting to £1.04 billion, down 12% from 2023 and 62% below the five-year average. This downturn reflects broader macroeconomic challenges, though the sector’s strong fundamentals continue to attract interest, as evidenced by a substantial increase in investment activity during Q4. £423 million was invested in single-let distribution units in Q4, up by 116% compared to the previous quarter. This resurgence suggests a more favorable outlook for 2025, with further activity anticipated in the coming year.

Avison Young reports that with inflation easing and interest rates expected to decrease gradually, market conditions are expected to stabilise, fostering more activity in the capital markets. The sector’s strong potential for delivering robust returns compared to other asset classes continues to make it an attractive investment option. The analysis predicts a rental growth rate of 4.3% over the next five years for the logistics sector, outpacing office (3.4%) and retail (1.8%) sectors, driven by sustained demand in prime locations.

David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said: “Looking ahead to 2025, the outlook is more positive, driven by a decline in inflation and anticipated interest rate cuts, although at a more gradual pace than originally expected. This should stimulate greater activity in the capital markets, while the sector’s potential for delivering strong returns compared to its peers remains clear. Despite high stock levels and an imbalance in shed sizes, prime headline rental growth continues to be resilient, particularly in prime locations, underlining the strength of the industrial and logistics market.”

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Manhattan Associates Reports Full Year Results

Posted on by Keith McKinley

Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. reported revenue of $255.8 million for the fourth quarter ended December 31, 2024. GAAP diluted earnings per share for Q4 2024 was $0.77 compared to $0.78 in Q4 2023. Non-GAAP adjusted diluted earnings per share forQ4 2024 was $1.17 compared to $1.03 in Q4 2023.

“Manhattan ended the year strong, posting record bookings that exceeded our expectations,” said Manhattan Associates president and CEO Eddie Capel. “In 2024, we surpassed the one billion in total revenue milestone and extended our position as the leading innovator in supply chain and omnichannel retail end-markets.

We enter 2025 excited about our growing market opportunity and are executing well on our business strategy. While we remain appropriately cautious on the turbulent macro environment, our business momentum is solid, and our team is devoted to our customers’ success,” Capel concluded.

FOURTH QUARTER 2024 FINANCIAL SUMMARY:

• Consolidated total revenue was $255.8 million for Q4 2024, compared to $238.3 million for Q4 2023.
o Cloud subscription revenue was $90.3 million for Q4 2024, compared to $71.4 million for Q4 2023.
o License revenue was $5.5 million for Q4 2024, compared to $5.2 million for Q4 2023.
o Services revenue was $119.5 million for Q4 2024, compared to $119.1 million for Q4 2023.
• GAAP diluted earnings per share was $0.77 for Q4 2024, compared to $0.78 for Q4 2023.
• Adjusted diluted earnings per share, a non-GAAP measure, was $1.17 for Q4 2024, compared to $1.03 for Q4 2023.
• GAAP operating income was $60.7 million for Q4 2024, compared to $58.9 million for Q4 2023.
• Adjusted operating income, a non-GAAP measure, was $90.3 million for Q4 2024, compared to $76.8 million for Q4 2023.
• • Cash flow from operations was $104.7 million for Q4 2024, compared to $88.4 million for Q4 2023. Days Sales Outstanding was 74 days at December 31, 2024, compared to 69 days at September 30, 2024.
• Cash totalled $266.2 million at December 31, 2024, compared to $215.0 million at September 30, 2024.
• During the three months ended December 31, 2024, the Company repurchased 155,444 shares of Manhattan Associates common stock under the share repurchase programme authorised by our Board of Directors for a total investment of $43.5 million. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.

FULL YEAR 2024 FINANCIAL SUMMARY:

• Consolidated total revenue for the twelve months ended December 31, 2024, was $1,042.4 million, compared to $928.7 million for the twelve months ended December 31, 2023.
o Cloud subscription revenue was $337.2 million for the twelve months ended December 31, 2024, compared to $254.6 million for the twelve months ended December 31, 2023.
o License revenue was $15.1 million for the twelve months ended December 31, 2024, compared to $18.2 million for the twelve months ended December 31, 2023.
o Services revenue was $525.5 million for the twelve months ended December 31, 2024, compared to $487.9 million for the twelve months ended December 31, 2023.
• GAAP diluted earnings per share for the twelve months ended December 31, 2024, was $3.51, compared to $2.82 for the twelve months ended December 31, 2023.
• Adjusted diluted earnings per share, a non-GAAP measure, was $4.72 for the twelve months ended December 31, 2024, compared to $3.74 for the twelve months ended December 31, 2023.
• GAAP operating income was $261.6 million for the twelve months ended December 31, 2024, compared to $209.9 million for the twelve months ended December 31, 2023.
• Adjusted operating income, a non-GAAP measure, was $361.8 million for the twelve months ended December 31, 2024, compared to $281.5 million for the twelve months ended December 31, 2023.
• Cash flow from operations was $295.0 million for the twelve months ended December 31, 2024, compared to $246.2 million for the twelve months ended December 31, 2023.
• During the twelve months ended December 31, 2024, the Company repurchased 986,555 shares of Manhattan Associates common stock under the share repurchase programme authorised by our Board of Directors, for a total investment of $241.6 million. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.

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Successful Year for Witron Group

Posted on by David Priestman

The WITRON Group can reflect on another successful business year for 2024. Sales increased by 100 million EUR to 1.4 billion EUR. The company also hired 500 additional staff members, which means that 7,500 people are currently employed by the family enterprise. Another positive development is that 89 young people have decided to start their apprenticeship at WITRON.

Successfully ramped up projects as well as new orders for the design, implementation, and service of highly dynamic food, near-food, and non-food distribution centers for retail customers in Europe, North America, and Australia complement the business year and also allow for a positive outlook.

“Even if investment decisions are sometimes delayed due to the current geopolitical conditions, we should look positively to the future based on our successful company history”, emphasizes WITRON founder and owner Walter Winkler. “The decisive factor will be to optimally cope with the existing conditions. Consequently, this means focusing on the things that we can actively influence: Namely, to design and implement logistics facilities for our customers that are cost-efficient and to underpin our global reputation for delivering premium quality. Then, we will be rewarded with orders even in challenging times.”

New orders from well-known food retailers

The order book shows that this credo is proving true. Although, the number of orders received is slightly below the record figure achieved in the 2023 business year, it is still very satisfying. Contracts signed with well-known food retailers in WITRON’s core markets of Europe, North America, and Australia, have strengthened the reputation of the OPM / COM system as the world’s most successful fully automated storage and picking system for retail units in the food retail sector. The trust placed in WITRON by the food retail industry was based on numerous projects in the dry goods sector (43 percent) and in the perishable / frozen goods area (57 percent) for customers in Germany, Benelux, Scandinavia, North America, and Australia, which were implemented on time and within budget. These include the almost 103,000 square meter omni-channel facility for Swedish food retailer Axfood, which reached full functionality shortly before the 2024 Christmas season and will supply more than 1,500 stores and thousands of click + collect / HomeDelivery customers daily from a wide range of 22,000+ different products. These products are stored in a temperature range of plus 18 degrees Celsius to minus 26 degrees Celsius. On a peak day, the OPM, CPS, AIO, DPS, and OPS modules pick almost 1.6 million units. In addition, a fully automated shipping buffer optimizes the entire dispatch process – all controlled by an intelligent WITRON warehouse management system.

The dry goods logistics center of food retailer Coles in Redbank (Brisbane) implemented by WITRON has even won the prestigious ASCLA Award (Supply Chain and Logistics Association of Australia) in the “Automation, Robotics or Emerging Technology” category. The decisive factor for the 16 judges was the high level of efficiency in the entire supply chain, cost-effectiveness, product availability, occupational safety, and sustainability of what is currently probably the most efficient distribution center of the southern hemisphere.

Based on the success of the Redbank facility, WITRON has successfully ramped up another highly automated distribution centre for Coles in Kemps Creek (Sydney). The state-of-the-art site matches the scope and functionality of the facility in Redbank and also impressively underlines the strength of a joint trusting cooperation. And the partnership will be further intensified in the future. At the end of October 2024, Coles awarded WITRON with the design and implementation of another automated logistics center near Melbourne – with the aim of further optimizing the supply chains based on innovative WITRON logistics technology.

Service continues to grow

WITRON Group’s service business was also further expanded. This is reflected in the integration of eight new OnSite service teams in our customers’ logistics centres. A total of 67 OnSite teams with 4,400 staff members in 12 countries is currently ensuring a permanently high availability of all material flow, IT, and mechanical components.

In the future, their work will be further optimized by an innovation called ‘one device’, allowing service technicians central access to all WITRON service tools via a SmartPhone. As a result, active and proactive maintenance work can be organized even more efficiently. This innovation fits perfectly into “WITRON’s interface offensive”, where workstation dialogs are individually adapted to the requirements of the respective workers in order to ensure maximum usability / UX.

In-house platform production

The company’s product range was expanded in 2024 with the in-house platform production in modular construction. In the future, these platforms will be manufactured in-house in the production facilities of WITRON Stahlfertiger GmbH + Co. KG located in Waidhaus, Germany. Based on end-to-end processes and state-of-the-art operating equipment, all work steps – from design to statics calculation – can be carried out largely without third-party suppliers. The first ‘WITRON platforms’ have already been installed for various US customers.

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East Midlands Airport: Freeport Development

Posted on by David Priestman

In a recent announcement, UK Chancellor of the Exchequer Rachel Reeves highlighted the importance of the East Midlands Freeport development, emphasizing its role in driving economic growth and job creation. She stated: “Economic growth is the number one mission of our Plan for Change. This investment will create thousands of new jobs, strengthen the UK’s position in advanced manufacturing and logistics, and boost the economy.”

East Midlands Airport (EMA) is advancing its Freeport plans with a new industrial logistics and manufacturing park, unlocking $1.3bn (£1bn) of investment. Located south of EMA, the site will offer tax and customs reliefs, attracting investment and fostering growth in life sciences and advanced manufacturing. EMA is seen to be the UK’s most important airport for express air cargo which enables seamless trade between UK businesses and the rest of the world, helping to support the regional and national economy.

A planning application has been submitted, with potential for 2,000 new jobs, £132m annual economic growth, and £9m in business rates. EMA’s strategic location and strong transport links make it the UK’s top express freight airport. Air cargo volumes are projected to grow by 54% by 2043.

EMA’s cargo operations have already attracted businesses in aeronautical, automotive, retail, pharmaceutical, and logistics sectors. This new development will further cement its role in global trade and innovation.

Sustainability is central, with adherence to the UK Green Building Council’s net-zero carbon framework. During construction, carbon emissions will be measured and reduced, and operational buildings will meet EPC A+ energy efficiency standards.

Steve Griffiths, Managing Director of EMA, emphasized the significance of this step, stating: “This is an exciting step forward for growth in and around the airport. Our unrivaled cargo operation continues to act as a catalyst for investment, and we look forward to building on its success.”

Tom Newman-Taylor, CEO of East Midlands Freeport, echoed this sentiment, highlighting the transformative impact of the Freeport’s tax sites: “This is a positive first step in realizing the full potential of the Freeport, creating thousands of jobs and unlocking billions in investment.”

Paul Weston, Regional Head, Prologis UK said: “Our partnership with MAG aims to realise the full potential of this strategic hub for international logistics.

“Our shared vision is to leverage the Freeport status and central location of EMA to create a high-impact gateway that drives economic growth, innovation and employment opportunities across the Midlands. By bringing our expertise in logistics developments to the table, we are confident that our partnership will unlock significant benefits for both the local community and the broader UK economy.”

This development underscores EMA’s critical role in driving economic growth and innovation, positioning it as a key hub for logistics and advanced manufacturing in the UK.

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Logistics Industry Support Third Runway at Heathrow

Posted on by Will Priestman

The UK government’s support for a third runway at Heathrow Airport has sparked discussions within the freight and logistics sector. Industry representatives emphasize the importance of expanding cargo capacity to meet growing trade demands. While acknowledging the benefits of increased airport capacity, stakeholders also highlight the need for strategic planning to ensure efficient cargo operations. Key industry figures from the British International Freight Association (BIFA) and FedEx Europe share their perspectives on the potential impact of the expansion on UK trade and supply chains.

Speaking on behalf of its members, Steve Parker, director general of the British International Freight Association (BIFA) said:
“The Government’s backing for a third runway at Heathrow is certainly of interest to BIFA members that offer international logistics services for cargoes moving by air,  and although our members will still be wondering when any spade will hit the ground, they are ready to work with the airport authority on streamlining and improving services.

“Whilst we wait for a third runway, BIFA will focus on the airport’s cargo development. And on behalf of our members, BIFA is already working closely with the airport to support its ambitious plans to deliver a fundamental change to the way cargo operates at the airport. The latest plans and software enhancements were revealed last October. These plans would mean a significant redevelopment of the cargo estate set to commence in the next two to three years, as the airport looks to accommodate rising demand, modernise some ageing first-line cargo handling facilities, and improve cargo flows and efficiency.”

Alun Cornish, Manager Director Ramp and Gateways at FedEx Europe, commented:
Expansion at Heathrow is a step in the right direction for UK growth. To fully realise its potential, it’s crucial that expansion plans include provisions for cargo growth alongside passenger flights. The ability to efficiently import and export goods is essential for UK economic growth, so it’s vital that cargo forms part of the UK’s future airport strategy.

Trade is a cornerstone of our economy, and our research last year revealed that the UK remains a leading exporter to both the EU and other global markets. Increased capacity in UK supply chains would be welcomed and would be a key enabler of the UK’s plans for growth.

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Businesses Urge for Electric Van MOT Deferral

Posted on by David Priestman

The Association of Fleet Operators (AFP) is calling for an official deferral for MOTs on 4.25 tonne electric vans as some fleets report finding tests “impossible” to book.

For MOT test purposes, this special category of vans is treated as a heavy goods vehicle (HGV), meaning that it has to be tested at one year old rather than three, and also faces a more rigorous examination.

Aaron Powell, fleet and logistics director at Speedy Hire is one AFP member being affected and reports that his company will have to potentially take a number of vehicles off the road.

“These 4.25 tonne vans require a Class 7 HGV MOT test and, between generally poor capacity for HGV testing and few test centres being able to handle electric vehicles, we’re finding it impossble on a practical level to book tests. Our lease provider has spent the last three months trying to find garages with the ability to carry out the pre-testing and source available slots for the test with limited success.

“This is going to have a serious impact on our business because we’re going to have to take these vans off the road and no doubt many other fleets are finding themselves in the same situation.”

Lorna McAtear, vice chair at the AFP, said: “As an organisation and at an individual member level, we’re very much focussed on safety and of course recognise the role that the MOT test plays in ensuring that vehicles operated by fleets are in a roadworthy condition.

“However, it’s questionable whether 4.25 tonne electric vans require HGV tests, an argument we have been making to government for some time. The whole point of this category of van when it was introduced in 2019 was to provide easy access for fleets to an electric equivalent of a 3.5 tonne panel van. These vehicles are simply 3.5 tonne vans with bigger batteries.

“The difficulties members are encountering around their inability to book MOT testing only emphasises this confusion. While the situation is being resolved, we would like to see government and the official bodies involved introduce some form of dispensation, similar to that created during the pandemic, allowing fleets to defer tests for a period of perhaps six or 12 months on 4.25 tonners for the first and second year of testing, giving them time to find and book testing facilities. It is disappointing that businesses working in good faith to electrify their light commercial vehicle operations are being affected in this manner.”

She added that despite a willingness on the part of government to try and overcome issues surrounding 4.25 tonne vans, problems remained.

“As a result of discussions between the Office for Zero Emissions, Driver Vehicle Standards Authority and Department for Transport, the operation of these vans on a practical level is often difficult for fleets due to confusion over whether they have been deregulated from all of the operator responsibilities that normally apply to vans over 3.5 tonnes.

“The government is aware of this and is trying to resolve the situation through the current consultation because there remains widespread belief that the 4.25 tonne concept remains worth pursuing as a means of speeding up van electrification. However, this process is taking time.”

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