Half of Large CV Fleets Could be Hybrid or Electric by 2025

Samsara Inc. (NYSE: IOT), a pioneer of the Connected Operations™ Cloud, today announced new research, revealing that over half (55%) of physical operations leaders surveyed in the UK and Ireland could have a hybrid or electric fleet by 2025, rising from 42% currently.

Samsara’s 2023 State of Connected Operations Report, which surveyed 300 physical operations leaders in the UK and Ireland who are running fleets of 150+ vehicles, reveals sustainability of operations is a critical priority for more than half (53%) of these leaders.

Half of those surveyed are in the process of purchasing or leasing electric vehicles (EVs) for their fleets, while 45% are training their drivers to reduce fuel usage and idling as a way to combat the emissions they produce. In addition, two in five (41%) fleets are already using clean or sustainable fuels, and of those, 45% are using hydrogen fuel cells and 68% battery electric vehicles.

Growing social and investor demands for more sustainable operations are also influencing leaders in their day-to-day decisions to reduce carbon emissions, with the primary drivers being to meet customer and partner expectations (45%) and investor expectations (38%).

However, fleet operations face challenges when it comes to being more sustainable, with around half (49%) of leaders saying a major hurdle for electrifying their fleet is the lack of fast-charging stations. Another obstacle for many (46%) is the cost of electrifying their fleet.

Philip van der Wilt, SVP and General Manager EMEA at Samsara, said: “With sustainability a clear priority for physical operations leaders in the UK and Ireland, investing in ways to transform their fleet has never been more important. Connected technologies can play an important role in enabling operations leaders to create a modern, sustainable fleet, providing data that can improve fuel economy, create more efficient vehicle routing, and promote more eco-friendly driver behaviour.”

Driver Shortage Top Concern for Fleet Managers

Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations™ Cloud, today launched further findings from its report — 2023: The Road Ahead — that delivers some strong insights into the UK Fleet Industry. Nine in 10 UK fleet managers (90%) are prioritising driver retention and recruitment this year, as driver shortages impact 42% of fleet-based businesses. That’s according to new research from Samsara, carried out among 150 UK fleet managers and 1,000 commercial drivers.

The focus fleet managers are putting on keeping their workforce comes as little surprise, as commercial drivers reveal the extent of the pressure they are under. Top of their concerns are issues such as the growing pressure to deliver on time (38%), increases in delivery volume (34%) and the need to meet more aggressive route schedules (33%)

In addition, only 33% of commercial drivers believe their role is valued by members of the public and just one in 10 (11%) say the UK Government respects their role.

As a result of the increased workload, it could signal the end of the road of a driving career for many, with 45% of commercial drivers saying they are ‘very likely’ or ‘quite likely’ to leave their current job during 2023. Two-thirds (65%) are also prepared to consider industrial action.

But the UK’s fleet managers appear poised to act.

Samara’s report — 2023: The Road Ahead — highlights that 100% of fleet managers agree that making driving a more in-demand profession is of high importance in 2023. And 94% are increasing their technology investment in 2023 to improve the driver experience and support driver safety.

It’s a move likely to be welcomed by commercial drivers, with eight in 10 (78%) agreeing that technology would positively impact their job, including dashcams (78%), GPS routing (77%), safety systems and alerts (75%), incident detection (75%), and mobile-based workflow tools (68%).

“It was only a couple of years ago that drivers were hailed as heroes of the pandemic. They kept the UK moving when almost everything else ground to a halt during lockdown. Today, this survey reveals a workforce that is feeling somewhat neglected and under-served. They want to see change,” said Philip van der Wilt, SVP and General Manager EMEA, Samsara.

“Now is the time for fleet managers to prioritise their driver workforce, and the vast majority are focused on making the job a more attractive and rewarding profession to drive greater diversity and attract new people into the industry. There needs to be a cultural change in the way professional drivers are perceived. Technology is not the only solution, but it can be an enabler of overcoming these complex problems, improving the driver experience, ensuring driver health and safety, and creating a modern way of working that meets the expectations of today’s workforce,” added van der Wilt.

To read the Samsara report and find out more, click here.

Samsara commissioned Vitreous World to carry out online interviews with 150 fleet or logistics managers in the UK with direct responsibility for vehicles, drivers, logistics, supply chain and/or field service operations, from 15 to 24 February 2023. A further survey of 1,000 UK commercial drivers was also carried out between 14-21 February 2023 by Good Broadcast. All research conducted adhered to the UK Market Research Society (MRS) code of conduct (2019).

Upsize to HGV Fleet for Greener Motoring

As the UK gets to grips with a revamped government strategy to meet its 2030 emissions cut target, the pressure is on for fleet decision-makers to run a more flexible, environmentally friendly fleet. Whilst upgrading a fleet to larger vehicles may not seem an obvious answer to achieving this ambition, Venson Automotive Solutions argues that they come with many advantages.

“It may not fit every business model, but upsizing can not only improve a business’s carbon footprint but reduce costs and boost productivity,” says Simon Staton, Client Management Director for Venson. “Furthermore, the socio-economic aspect of an upsize can give a competitive edge by demonstrating a responsible corporate image. It’s understandable that fleet managers may feel unsure of the process involved with upsizing, but with careful planning and strategic thinking, coupled with relevant guidance, evolving a fleet can be done smoothly and efficiently.”

Driver recruitment, vehicle and company compliance, licences and the complexities of moving up to commercial vehicles beyond 3.5t are all discussed in Venson’s free whitepaper ‘Operating Commercial Vehicles Beyond 3.5t GVW whitepaper’.

Upskilling investment is an important factor businesses need to take into consideration, but one that will save in the longer term and play a considerable role in replenishing the UK’s diminished Heavy Goods Vehicles (HGV) skills sector. Most standard passenger car driver licences only entitle their holders to drive vans up to 3.5t GVW. To drive a vehicle beyond 3.5t up to 7.5t GVW, requires a C1 licence, whilst a driver must be in possession of a specific HGV Class 2 licence to drive a truck over 7.5t GVW. However, a driver with a Class 2 licence can drive any rigid truck way beyond 7.5t, so once this driver investment is made, a business can increase the size of its fleet vehicles if the business requirement were there.

Individuals that drive HGVs and Light Commercial Vehicles (LCVs) weighing 3.5ts GVW and upwards professionally are also required to hold a Driver Certificate of Professional Competence (CPC) qualification as a legal requirement. This is obtained by completing 35 hours of training followed by competency exams. This process needs repeating every five years for the driver to maintain legal compliance.

However, Venson stresses the significant benefits to be had from upsizing. Simon Staton concludes, “An average large delivery van can carry a load weighing 1,000 to 1,800kg, yet a 7.5 GVW truck can manage 3,000 to 4,500kg, a two to threefold increase, meaning the potential to run two less vehicles to carry out a similar workload is a viable option. When you factor in that a 16-tonne GVW rigid trucks’ carbon footprint isn’t usually vastly different to a 7.5t truck, then it’s even easier to comprehend the financial and emissions savings to be gained.”

Download a copy of ‘Operating Commercial Vehicles Beyond 3.5t GVW whitepaper

VENSON’S CHECKLIST TO PLANNING AND EXPANDING A FLEET BEYOND A 3.5T GVW

• Lay out key requirements and ensure clear reasoning as to why new vehicles are required and what they’ll allow your company to achieve.
• Get the right administration people and drivers in place by re-training current staff or recruiting new staff.
• Carefully research the best base vehicle to suit the new needs. Considerations should include availability, list price, maintenance facility location, projected running costs and suitability for intended role.
• Body and Equipment – Are your needs met by off-the-shelf conversions? If not, your fleet management provider can help with defining a vehicle specification and sourcing a reputable bodybuilder.
• Understand impact on operating base, is it already appropriate or is a move required?
• Decide on the preferred method of financing to suit your company needs with the help of external experts and your own accounting.
• Reporting – Ensure that any systems for vehicle and driver reporting are in place and a team member is empowered to carry this out as part of their daily routine.
• Maintenance – It is vital that a clear and well-managed maintenance plan is put in place and adhered to.
• Management – As the jobs and vehicles become more complex, so does the task of managing them, and their drivers. Ensuring clarity with regards responsibilities is paramount.
• Compliance – Driver, vehicle, licences, ancillary equipment and operating base all have to be compliant with the laws of the road and the land.

Fast-track HGV Decarbonisation with Renewable Biomethane

CNG Fuels, Europe’s leading supplier of renewable biomethane for heavy goods vehicles (HGVs), today announces it will acquire a majority stake in Renewable Transport Fuel Services Limited (RTFS), the largest renewable biomethane sourcing company for UK transport.

A new holding company, ReFuels, has been established to better reflect the growing scope of the business. ReFuels combines CNG Fuels’ rapidly growing UK network of public access Bio-CNG refuelling stations with RTFS’s upstream biomethane sourcing activities to create one of Europe’s largest fully integrated renewable biomethane suppliers for heavy transport.

Philip Fjeld, CEO of ReFuels and CNG Fuels said: “Running trucks on Bio-CNG has now become “business as usual” for fleet operators and CNG trucks are being adopted en masse UK-wide as fleet operators recognise Bio-CNG as the most cost-effective and lowest carbon alternative fuel to diesel available today. In 2022 alone, we saw dispensed volume increase by 62% compared to 2021 and we expect to surpass this growth rate in 2023.

“Acquiring a majority stake in Renewable Transport Fuel Service enables us to become a fully-integrated supplier of 100% sustainable and renewable biomethane – from the producer down to the dispenser nozzle. Under our new ReFuels structure, we are very well-positioned to accelerate our sustainable growth rate and help the sector decarbonise even faster”.

ReFuels will keep the CNG Fuels brand name for its Bio-CNG refuelling station network, to maintain its dominant UK brand profile. The company serves more than 80 individual customer fleets, including household brands such as Amazon, Royal Mail, Aldi, Waitrose, Warburtons and EVRi, amongst many others. Around 1,300 HGVS refuel at its stations daily and this number is expected to reach more than 2,000 trucks by this time next year based on confirmed orders from its customers.

CNG Fuels currently has ten stations in operation, enabling low carbon deliveries from Inverness to Cornwall. Three further sites are in construction, with four more going into construction by the end of Q3 2023. Most sites are owned in its successful joint venture with Foresight Group, CNG Foresight. The 10 existing sites can refuel around 5,000 high mileage HGVs per day, and the new sites will increase total capacity to around 8,500 HGVs per day by the middle of 2024, enabling 5% of the UK’s heaviest truck fleet to access biomethane along the UK’s major trucking routes.

The acquisition of RTFS will further strengthen the business’s capability to meet its customers’ growing appetite for bio-CNG and will also provide significant benefits to biomethane producers who will now have long-term direct access to the downstream customer demand.

CNG Fuels was established in 2014 and is today the UK market leader for the supply of Bio-CNG (renewable and sustainable biomethane fuel) for commercial vehicles. Its gas is sourced entirely from renewable and sustainable biomethane, which is cheaper and emits less carbon well-to-wheel than any other HGV fuel. The biomethane is made from a waste feedstock, approved under the Renewable Transport Fuel Obligation RTFO), and generates Renewable Transport Fuel Certificates (RTFC).

Later this year, the company will offer carbon neutral biomethane derived from manure at the same price as the renewable biomethane fuel it currently supplies. It also consulting on how its network of refuelling stations can best accommodate low-carbon hydrogen and battery electric technologies for HGVs, so that it can support customers when these become commercially viable.

Right Charging Infrastructure for EV Fleets

Nicola Mahmood (pictured), Business Development Director of Equans EV Solutions, advises Logistics Business readers on adopting the right charging infrastructure for commercial vehicle EV fleets.

Over recent years, making a conscious effort to reduce corporate carbon emissions and become more sustainable has switched from being a consideration, to something that is essential for every business. Whilst there are many ways for businesses to improve their sustainability credentials, organisations are increasingly considering van and lorry fleet electrification as part of their sustainability strategy. This is reflected in recent electric vehicle uptake figures as at the end of last year, sales of new electric cars in the UK overtakes diesel vehicles for the first time – largely fuelled by fleet and business users.

With roughly only one fleet replacement cycle before the UK’s 2030 ban on petrol and diesel vehicles comes into effect, now is the time to start considering EV charging infrastructure for your logistics operation.

Key considerations for charging infrastructure

Choosing charging infrastructure that best meets the needs of your operation is crucial. To determine the right charging solution, you first need to understand the behaviour of your fleet. First consider the distance your drivers travel on a daily basis. According to the statistics from the Department of Transport, over half of van drivers in the UK tend to stay local – only travelling within 15 miles of their base on a typical day. Mapping out your typical routes throughout the week will help you to determine the required range of your van and lorry fleet vehicles.

The next factor to consider is where your drivers will return to once they’ve been on the road. If they will be returning to a depot overnight, installing on-site charging facilities using AC fast chargers – ideally 22kW and under, is likely to be the most suitable option. However, if the vehicles return to base but need a quick charge before heading back on the road – rapid charging is something that should be taken into consideration. If at the end of the day, the vans are taken home by employees – domestic charging should be the first choice. If your fleet operates different schedules, you might need a combination of on-site and domestic charging to keep your operation moving.

For fleets that cover long distance on a daily basis, likely with lorry fleets, public charging networks provide the perfect solution. Public charging infrastructure is rapidly growing to meet the needs of EV drivers, both private and commercial. In fact, recent statistics have shown that in the UK there are currently 33,281 public EV charging points. The GeniePoint network has over 500 rapid chargers across the UK, with most charging the average EV in under 45 minutes.

To make managing payments easier, many charge point network operators offer trade accounts, enabling businesses to set up an account for multiple drivers and be billed in arrears for usage on the public network. This mirrors standard fuel cards – making the transition from petrol or diesel even easier.

Taking the habits of your fleet and your drivers into consideration will help you determine which charging solution is going to be right for your logistics business.

Delivering charging infrastructure that works for your business

Once you understand your fleet charging needs, the next phase is to get your site EV ready. Working with a dedicated charging partner, such as Equans, can ensure this process is smooth and efficient. Choosing a partner that provides an end-to-end charging solution will ensure you are supported through every stage of your fleet electrification process. This includes full planning, design and delivery of your EV programme, from recommending the most suitable hardware, to carrying out installation works. Post installation, the right partner will be on hand to help you manage and optimise your charge points, provide crucial performance insights and support with monetisation.

Overcoming power challenges

One of the biggest barriers to EV charging implementation is on-site power availability. If the solution identified means that additional power is needed, it can be expensive and time consuming to upgrade the on-site power supply. Innovations such as load balancing and battery storage are great solutions to tackle this problem. Battery storage is typically cheaper than a supply upgrade and can help to drastically reduce lead times. For logistics organisations looking to meet specific deadlines – battery storage can ensure those critical timescales are met.

With battery storage, you can also increase energy efficiency by combining with solar power. By installing solar panels onto the site building and battery storage alongside, energy captured through the day can be stored within a battery and used to recharge vehicles overnight. Maximising these innovations can eliminate the barrier of not having on-site power available and also reduces the investment required – making EV adoption simple and cost-effective.

Start small and scale your solutions

There’s a lot to consider when it comes to finding the right charging solution, so it is recommended to start small and scale up. This enables you to change your strategy if needed and prove the concept works, before making a large-scale investment. Speaking to an expert charging infrastructure partner who offers scalable solutions is recommended to guide you through the process. Finally, it’s important to consider what will work for your business’ specific use case. It’s likely that you will need a combined approach to charging, installing chargers on-site, as well as using public networks. Through Equans EV fleet analysis, we take the time to understand your business needs, and therefore can recommend a scalable charging solution that will work around you.

Electric Trucks Market Booming, says Volvo

Volvo Trucks has now sold more than 4,300 electric trucks globally in more than 38 countries, while in Europe it is leading the way with a 32 per cent share of the market for heavy electric CVs/lorries. In 2022, Europe’s heavy electric CV market grew by 200 per cent to 1,041 units, with Volvo setting the pace.

Roger Alm, President of Volvo Trucks, says: “We are determined to lead the electric truck transformation and our market leading position in 2022, not only in Europe, but also in North America, is proof that we are doing just that. Although the market for electric trucks is still small compared to the traditional diesel variants, the trend is clear: many of our customers are now starting their own shift to electric. We intend to be the catalyst for this transition and aim for 50 per cent of our global sales of new trucks to be electric in 2030.”

Since Volvo Trucks started production of fully electric CVs in 2019, the company has sold more than 4,300 electric trucks/lorries in more than 38 countries around the world. Volvo currently offers the industry’s broadest product line-up of electric models in series production, catering to a very wide variety of operational domains both in and between cities.

“We now have a product portfolio that can cover most types of transportation for all kinds of customers,” adds Alm. “Looking at the goods flow patterns in Europe, it’s clearly possible to electrify nearly half of all those transport operations with our line-up of electric lorries. We see it as our mission to support our customers in making that happen.”

The 10 largest markets for electric lorries, based on number of registrations ≥16 tonnes, in Europe are:

1. Germany – 198
2. Sweden – 169
3. Norway – 150
4. France – 118
5. Switzerland – 103
6. UK – 101
7. Netherlands – 89
8. Spain – 79
9. Denmark – 48
10. Belgium – 17

The Volvo market share and overall growth data referenced for heavy electric CVs/lorries in Europe includes content supplied by IHS Markit.

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