‘Twin peak’ challenge ahead for FMCG

The European FMCG market will likely experience an unparalleled ‘twin peak’ of consumer demand in the fourth quarter of 2022 as a winter football World Cup and Christmas arrive back-to-back for the first time.

Palletways Group pallet movement figures across Europe identify a 16% jump in pallets in the three months leading up to and including the 2021 football European Championship Final, compared to usual summer pallet movement trends. This surge is in addition to the festive rush, where there is a typical 25% jump in average daily movements in the 90 days leading-up to Christmas Day compared to the first quarter of the calendar year.

The potential for a 2022 ‘twin peak’ represents a once-off challenge for pallet networks, hauliers, retailers, and manufacturers, as they consider how to manage an uptick in movements and get

FMCG goods from factory to consumer on time and in line with demand.

Luis Zubialde, Palletways Group Chief Executive Officer, said: “As we head towards this ‘twin peak’ and our customers and members face the challenge of managing different demands, everything we invest in, whether innovative technology or member support, comes together to provide unrivalled customer service excellence.

“Data management to predict how our operations must adapt to pressures not by the day, but by the hour, is critical. Our cutting-edge software tools combined with experienced, knowledgeable analysts enables us to consider factors, like European and national events, and predict the impact on network-wide operations. Predictive analytics enable us to speed processes up in our 20+ hubs across the continent and provide access to international markets quickly.”

Predictive analytics also underpin the full Palletways service offer whatever the market conditions, including Saturday morning pallet delivery and home pallet delivery (Pallets to Consumers).

Mike Harrison, Palletways UK Operations Director, said: “Our approach to data and predictive analytics is a crucial reason why we now maintain the highest number of members in Palletways UK history. It supports members in delivering excellent services for their customers.

“Our members work exceptionally hard all-year round. The effectiveness of predictive analytics is only beneficial if highly motivated people use the data to improve their operations and go the extra mile for customers during their peak periods. This quality is one of the key features of our members.”

Haulage team overcomes bridge challenge

A team from Collett & Sons has successfully delivered an 80-tonne transformer from Lancashire to the Harting Rig Wind Farm substation in Scotland. Appointed by Fracht UK, Collett was tasked with providing a transport solution to deliver the heavy cargo the 230 miles from Goole to South Lanarkshire. But what would normally have been a relatively straightforward journey for the experts from Collett was complicated just three miles shy of the wind farm site in the shape of Glassford Bridge.

Identified in the planning process, weight restrictions were in place on the structure, resulting in limitations to the vehicles and cargoes crossing the bridge. The loaded trailer and truck combination would have exceeded the structure’s maximum permitted weights, therefore a new approach would be required.

Alongside the weight limitations, Collett was also required to observe a maximum speed of 10mph and ensure that no other traffic or pedestrians would be present on the bridge during the transport operation. In addition, all vehicles must follow a three-metre strip of the bridge, with a series of cat’s eye markers in place to ensure each vehicle maintained a set alignment throughout.

With all this identified, Collett executed innovative transport arrangements to overcome these obstacles.  Arriving at Glassford Bridge, the process began by uncoupling the loaded trailer from the 8×4 MAN TGX tractor unit. Once disconnected, two 40m wire cables were attached, connecting the trailer and primary ballast truck.  A secondary 8×4 ballast unit was then connected at the rear of the trailer, again using 40m wire cables.

The extended combination was then ready to go.  Having implemented Temporary Traffic Restriction Orders, the lights on the bridge were turned to red and the team from Collett was able to proceed. With all other traffic restricted, the secondary ballast tractor reversed and the primary drove forward. This tensioned the cable, removing any slack, then both vehicles began the slow drive forward.

Controlling the cable tensioning throughout, the primary tractor unit cleared the structure, followed by the trailer, transformer and Steersman in tow. With the ability to control the trailer’s steering and braking, Collett’s Steersman ensured that the trailer and cargo remained within the necessary alignment whilst traversing the structure.

Once clear of the bridge, and with the trailer brake applied, the secondary ballast unit took up the cable stack and crossed Glassford Bridge to complete the operation.

With the wire cables removed and the primary tractor unit re-coupled, the 80-tonne transformer completed the remaining three miles of the journey to Harting Rig Wind Farm. On arrival, the cargo was met by Collett’s Heavy Lift Team for jacking and  skidding to its final position.#

 

DispatchTrack unveils industry-first CO2 tracking tool

DispatchTrack, a global leader in last mile delivery solutions, has announced the availability of AI-powered carbon emissions tracking to help companies meet their supply chain sustainability goals. Available as a feature in the DispatchTrack routing console, CO2 tracking enables companies in any market worldwide to better understand their existing carbon output on a per-route, per-stop, and per-vehicle basis, optimise routes to reduce CO2 output, and gather data to illustrate the impact of their sustainability initiatives.

Fuel consumption in last-mile delivery is one of the largest contributors to emissions in the modern supply chain, as well as one of the greatest costs for delivery companies. Using DispatchTrack’s AI-powered route optimisation engine, companies can discover green delivery options that leverage the most efficient routes with fewer miles driven and less fuel used. By taking into consideration all of a day’s stops and shortening the total distance that drivers have to travel in order to fulfil their orders, DispatchTrack can help last-mile delivery companies reduce fuel consumption across their fleet by at least 10%.

DispatchTrack’s new CO2 tracking feature can be easily added to a customer’s existing DispatchTrack portal. Emissions data is included within routing and reporting screens, allowing users to visualise carbon emissions for each stop, and will dynamically update as routes are changed, all based on configurable emissions expectations based on different vehicle and load types.

Alex Buckley, General Manager of EMEA and APAC Operations at DispatchTrack, commented, “Consumers are making more and more of an effort to make sustainable choices. What better way for brands to help them do that – and show off their own success at boosting sustainability – than by being able to seamlessly track and report the reduction of CO2 emissions in their deliveries?”

“When it comes to the last mile, businesses around the world are taking sustainability seriously. There’s mounting pressure to do better and to invest in initiatives that actually reduce CO2,” said Satish Natarajan, DispatchTrack co-founder and CEO. “With the industry’s first AI-based CO2 tracking capabilities, we’re helping our customers double down on their net-zero commitments and achieve their sustainability goals. By providing CO2 emissions numbers in real-time and route optimisation powered by AI, DispatchTrack is helping our customers reduce their emissions with confidence and become even more competitive.”

 

Fraikin appoints new MD

Contract hire, fleet management and rental specialist Fraikin has appointed Peter Backhouse as UK Managing Director in a move which sees him return to the business, having originally led the company between 2010 and 2015.

Prior to his reappointment, Backhouse had spent much of this year working in a consultancy role for Fraikin, sharing a wealth of industry experience which has included 13 years holding senior supply chain and logistics positions at both BT and Jewson, 11 years with Ryder between 1997 and 2008, with seven as Vice President and Managing Director of its European fleet and supply chain business. He was also Managing Director of Bunzl Healthcare for two years before joining Fraikin for the first time, returning to the industry as a consultant in 2019.

Backhouse says: “I’m delighted to be returning to a leading fleet company in Fraikin as Managing Director, especially at such an exciting time for the industry. So much is changing right now with new legislation, new environmentally friendly drivelines and new connected technologies. With such a fast pace of evolution it’s vital for businesses to access the most expert, independent, and up-to-date advice when making decisions about future fleet strategy.

Fraikin is in a fantastic position to be the fleet partner of choice, and that’s one of the reasons I wanted to re-join the company. We pride ourselves on delivering market-leading fleet solutions, utilising our deep industry knowledge and experience to deliver a complete tailored service package to customers. As a totally independent business, our team can also recommend the best outcome for every individual customer’s unique needs, regardless of vehicle brand.

“Plus, with strong funding fully secured and ready to use, we are also in the enviable position of being able to look at significant fleet investments, with both new and existing customers. Our Board and Shareholders are fully committed to develop and grow our UK business and we are excited and ready for a strong and positive future.”

AI technology: the solution to the driver shortage

There are signs that the pressure caused by the lack of HGV drivers may be starting to ease after the recent publication of data by the Department of Transport, writes Philip van der Wilt (pictured), VP EMEA, at Samsara. Figures just released show there has been a significant jump in the number of HGV driving tests carried out between January and March 2022 compared to pre-pandemic levels.

News of the 74% rise, as reported by the Driver and Vehicle Standards Agency (DVSA), will undoubtedly go some way to unblock the damaging bottleneck that was acting as a brake on driver recruitment.

That said, the issue of driver shortages are not new – and attracting new people to the professionhttps://www.logisticsbusiness.com/transport-distribution/haulage-freight-forwarding/

and retaining that talent won’t be fixed simply by enabling more drivers to become qualified.

In response, industry leaders are looking at a range of solutions to tackle the ongoing problem, and that includes the adoption of smart technologies like artificial intelligence (AI).

By artificial intelligence, I do not mean automated HGVs or a lack of human involvement in day-to-day roles. Instead, it’s about the introduction of everyday devices – powered by AI technology – that can assist drivers in their daily tasks, creating a more rewarding working experience.

Automating monotonous tasks

Many industries have already taken strides to automate their workplaces by switching paperwork for digital processes, making monotonous tasks sleeker and less time-consuming. And the same level of digitisation is now starting to be rolled out across fleet-related industries, eliminating time spent on tasks such as filling out paperwork, recording fuel receipts, and performing paper-based vehicle checks.

Vehicle walkarounds can be carried out using an easy-to-use mobile app and automatic alerts sent if any issues are identified, so they are logged immediately and can be fixed more quickly and efficiently. And instead of reporting to an office or phoning in, drivers can check their day-to-day tasks on a simple app to ensure that they’re fully up to date on schedule changes or re-routes.

This type of automation – increasingly common across all business sectors – helps to streamline communication between drivers and fleet managers. In fact, one of the findings from our recent report found that that AI and automation was a key driver in increasing employee retention.

Keeping drivers safe

With the ongoing advancements in dashcam technology, fleet managers are becoming increasingly well placed to protect drivers with real-time, high-definition videos while they’re out on the road.

Dashcams have become an essential tool, allowing fleet managers to access a driver’s-eye view of any incidents or accidents that occur, providing much needed back-up and support. Dashcam technology – which is increasingly being fitted with smart AI technology – can also be used as a driving aid helping to improve driver safety.

In fact, our Connected Operations report [LP1] showed that 56% of operation leaders found the improvement of workplace safety was the most influential factor for recruiting and retaining employees.

Technology helps the recruitment process

Starting a new job is never easy. Which is why anything that can be done to make the onboarding process as efficient and easy as possible is critical. Learning the ropes is far simpler when workplace systems have the look and feel of everyday apps. Easy to use and requiring less training, drivers can get on with the job at hand without having to learn and use out-dated paper-based processes.

With less training required, drivers can sign on quickly and get started on the job sooner. In fact, 43% of operations leaders have seen a greater upskilling for employees as a result of introducing tech to the workplace.

Role of smart technology in driver retention

When it comes to attracting more drivers to the industry, no one solution will undo decades of under investment. While improved pay and conditions, plus investment in roadside facilities, will help, more can be done to change perceptions of the industry, create more appealing working experiences and secure a new pipeline of drivers.

Technology can remove some of the time-consuming and more tedious tasks associated with fleet jobs, g and, above all, making the job safer. By removing the hassle of every-day tasks, drivers can get on with the job they signed up for and want to do – drive.

 

European road transport prices break new records

Inflation, weakening demand, social instability and the war in Ukraine are leading to tumultuous developments in road freight prices, reveals the Ti / Upply / IRU Road Freight Rate Benchmark for Q2 2022. For the first time, this edition offers a separate analysis of the evolution of spot and contract rates.

  • The European contract road freight rate index reaches an all-time high of 121 points in Q2 2022, up 6.1 points quarter-on-quarter and 13.1 points year-on-year.
  • The European spot road freight rate index also reached a record high of 134 points, up 11.8 points from Q1 2022 and 20.1 points from Q2 2021.
  • Inflation is rising in all European countries and reached a record high of 8.6% in the Eurozone in June, weighing on costs and demand.
  • While diesel prices have varied by country since prices have remained elevated in July and are 69% above the January level.

The European Road Freight Rates Benchmark, produced by Transport Intelligence, Upply and IRU, analyses European road freight rates and market outlooks on a quarterly basis, to inform the decisions of shippers, transport providers and hauliers.

For the first time since the beginning of the report, Ti, Upply and IRU are able to offer a differentiated analysis of spot and contract rates in this edition covering Q2 2022.

  • War in Ukraine: Following the invasion of Ukraine, in March, the EU-27 pre-tax diesel price jumped 69% from its January level.
  • Demand weakening: Multiple indicators point to a weakening demand for European road freight, with declining activity in all major economies and inflation rates weighing on consumer and business confidence.
  • Rising inflation: Inflation is rising in all European countries and reached a record high of 8.6% in the Eurozone in June. According to the latest data, Spain is experiencing the highest increase with a price rise of +10.2%, higher than the other major European economies of Germany (7.9%), France (5.8%), Italy (8%) and the UK (9.1%).
  • Driver shortage: The shortage affects the entire European continent. Germany is in a particularly critical situation with an estimated shortage of 50,000 to 80,000 truck drivers. Migrant workers account for 24% of the German driver workforce and the loss of Ukrainian citizens returning to defend their country has further restricted the supply of drivers in Germany.
  • France/Spain: This corridor has seen very significant increases in spot rates. In particular, the increase reached 21.2% quarter-on-quarter in the Paris-Madrid direction. This is almost twice the average increase in European spot rates and is also the second highest increase of all European spot rates.
  • Germany/Poland: All rates, with the exception of spot rates from Duisburg to Warsaw, have reached new historical highs on this route after having followed an upward trend since the beginning of the pandemic. Contrary to the relationship observed on most European routes, spot rates on this route increased more slowly than contract rates. Demand has been affected in particular by the weakening of the industry in Germany and Poland. The instability created by the conflict in Ukraine is particularly noticeable in this part of Europe and also affects the development of industrial prospects.
  • France / Great Britain: Following the Brexit, transport operations between France and Great Britain have become more expensive and longer. Researchers at the London School of Economics (LSE) have found that while exports have largely recovered, British imports from the EU have fallen by 25% compared to other destinations. In addition, the variety of goods traded fell by 30%. Low value goods were the most affected by the increase in administrative costs.

Thomas Larrieu, Chief Executive Officer at Upply, comments: “The lull in European demand should slow the upward pressure on road freight rates. On the other hand, hauliers are still facing significant cost increases (fuel, labour, etc.), so rates are likely to remain at high levels in the coming months.”

Nathaniel Donaldson, Economic Analyst at Ti said: “The effect of rising costs in 2022 is now very evident with road freight rates across the European continent reaching new all-time highs. Initial fuel price rises following the invasion of Ukraine have held and produced a much more costly environment for European road carriers whilst industrial action and a worsening driver shortage keep capacity tight. A range of indicators are pointing towards a drastic slowdown in consumption and production which will ease further increases while high costs keep rates elevated.”

CLICK HERE to download a copy of the full benchmark report.

Miniclipper founder passes away

Miniclipper Logistics’ founder Mick Masters has passed away at the age of 83 in the UK company’s 51st year. His death follows a long battle with Alzheimer’s.

Masters founded the business in 1971 by responding to a newspaper advert in the Leighton Buzzard Observer for someone to develop their own parcel delivery service doing daily runs between Bedfordshire and London.

He bought a VW van and Miniclipper was born. The business and fleet grew steadily during the 1970s and 80s built on a foundation of strong customer service led by Mick supported by his wife Janet, who managed the administration as well as driving one of the company’s vans.

The business has remained in the area ever since and now has 450,000 sq ft of storage and over 38,000 pallet spaces across five sites in Leighton Buzzard, Houghton Regis, and Dunstable.

Mick’s son, Peter, took over as MD in 1995, and his daughter-in-law Jayne was appointed as sales director with Mick officially retiring in 2005. They are pictured either side of him. Mick was proud to see Miniclipper reach its 50th birthday in 2021 still as a family business just as the third generation of Masters joined the team.

In 2020/21 Miniclipper celebrated a record turnover through the provision of a range of transport, storage, and warehousing solutions for the medical, construction, print, retail, and food sectors. The business now has 40 trucks and 30 trailers, employs 140 people and is a shareholder member of the Palletline network.

Logistics Business passes its condolences on their loss to Mick’s family, colleagues and friends.

RHA chief executive Richard Burnett resigns

Richard Burnett, the chief executive of the Road Haulage Association (RHA), has resigned having spent seven years in the job.

Although the RHA hasn’t released a statement on Burnett’s departure, the story was broken last month by transport magazine Motor Transport. RHA national chairperson Moreton Cullimore is reported to have said: “The RHA’s membership has grown significantly and our profile as an association has increased considerably.

“On behalf of the RHA board of directors and all the RHA employees I would like to thank him for everything he has achieved and wish him the very best for his future endeavours.”

Burnett said: “After seven unforgettable years as the RHA’s chief exec I have decided it is time for me to step down. It’s been a challenging time for so many reasons and I have given all my energy to representing our members and the industry as a whole, but now feel ready for a new challenge. I’m incredibly proud to have led the transformation of the RHA during my time here, creating the strong and diverse association we see today.

“None of this would have been possible without the dedication of the RHA staff and support of our members. Thank you.”

Burnett joined the RHA in 2014 from Samworth Brothers Supply Chain, where he’d been the MD, and prior to that he’d spent more than 10 years at Wincanton.

Burnett left the RHA on 31 December 2021

Incredible 5000-mile journey for shunt reactors

Collett & Sons, an expert in transporting abnormal loads, has transported two 160Te shunt reactors over 5000 miles to the onshore substation site in southern Scotland for the Neart na Gaoithe offshore wind farm project, jointly owned by EDF Renewables and ESB.

Collett was contracted with the full scope of work providing a door-to-door service, including the project management, engineering and the transport of the two 160Te shunt reactors.

A year before deliveries commenced, Collett’s Consulting Department was contracted to undertake multiple surveys to find the most feasible route. This included all route surveys, swept path analysis reports, topographical surveys, bridge height surveys and wire cable height surveys. This resulted in Collett liaising with local authorities to temporarily remove street furniture and employing tree surgeons to remove obstructing foliage.

The shunt reactors were transported in three stages before arriving at the substation site. First, Collett worked in partnership with a trusted European partner to transport the shunt reactors ahead of their arrival in the UK. The Collett Projects Department was then responsible for all port operations, including the loading of the vessel, also chartered by Collett, for the 4800 miles to the Port of Leith in Scotland.

Working closely with the port, Collett carefully planned the cargo’s discharge, including providing crane lifting plans and an agreed programme of works for all loading and discharge operations.

Once at the port, utilising an 800Te crane, the shunt reactors were discharged onto a dedicated 14-axle line modular flat top trailer. Both shunt reactors were offloaded at the port onto stools for temporary storage. Collett also transported and stored multiple ancillary components at its port-side depot in Grangemouth.

Utilising its 550Te capacity girder bridge with 20-axle lines, Collett transported the shunt reactors from Leith Docks to Innerwick. Due to narrow access along the remainder of the route, Collett transhipped each of the two shunt reactors from the 20-axle girder bridge on to a 14-axle flat top modular trailer in a dedicated road closure area, complete with all traffic management, in order to complete delivery. All movements were facilitated under police escort, as well as Collett’s in-house fleet of pilot vehicles.

At the NnG onshore substation site, located in the Lammermuir Hills, Collett’s Heavy Lift Team offloaded and positioned the shunt reactors into their final position using a hydraulic jacking and skidding system.

Part two of the project is expected to take place in the coming weeks , when two 180Te supergrid transformers are due to be delivered to the wind farm site.

Pallet-Track expands network

The Pallet-Track pallet network has signed up its latest shareholder member, Walsall-based Trailer Freight International (TFI).

TFI is based just six miles from Pallet-Track’s Wolverhampton central hub, and joins the network as part of its plan to accelerate its growth domestically.

TFI was established in 1983, operating daily freight services to Northern Ireland and the Republic of Ireland, with two employees and a 5,000 sq ft warehouse using sub-contracted transport.

It now boasts 20,000 sq ft of warehouse space and a thriving international freight forwarding division and was sold to Northern Ireland-based logistics firm Express Distribution Services in 2015.

While its growth has been impressive, its roots remain within the Black Country with the relocation in February this year still less than five miles from the company’s original home.

Allan Collins, business development manager at TFI, is managing the implementation of the Pallet-Track contract: “We’ve been looking to grow our business in the UK market since TFI was brought by our parent company EDS and that’s exactly what joining Pallet-Track will help us do.

Pallet-Track is a proven entity with excellent credentials. It’s a big, successful company with impressive growth and not every transport company gets the opportunity to join, so we’re really pleased to be a part of it.

“We look forward to moving forward positively together. We’re hoping this new partnership will help us set up a mirror image of our operation in Northern Ireland and the Republic of Ireland.”

TFI will cover part of the WS postcode area for Pallet-Track and becomes its seventh new network member this year.

Caroline Green, CEO of Pallet-Track, said: “We’re delighted to welcome our near neighbours Trailer Freight International to the network. It’s a company which comes with an excellent track record and clear vision for growth.

“The last 18 months has provided a unique set of challenges for us and the logistics industry as a whole, so recruiting the right members is ever-more vital for the network’s continued success.”

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