Computer Transport and Logistics

Computer Transport

Navigating the HGV Driver Shortage Crisis

It is no secret that our industry is experiencing a global shortage of trained HGV drivers. According to the latest research published in 2022 by the International Road Transport Union (IRU), in Europe, there is currently a shortage of 380,000 truck drivers, which equates to about 10% of demand and rising.

We understand the importance of nurturing a skilled workforce to sustain the industry’s growth and meet increasing demand. That’s why we actively support apprenticeships including the Commercial Drivers Apprenticeship to provide aspiring drivers with valuable training and hands-on experience.

In this blog, I will discuss why the HGV driver shortage has occurred and how can we use education among other initiatives to overcome this challenge.

What are the implications of the driver shortage?

A shortage of drivers means longer shipping times and higher costs, driver fatigue, driver turnover and recruitment challenges and more.

Why is there an HGV driver shortage? 

Retirement age: At a global level, a large majority of truck drivers are coming close to the retirement age or have just retired, leaving a gap as we observe from one survey that just 7% of truck drivers are 25 or younger.

Gender gap: The industry also is predominantly male, with a very low proportion of women opting to make truck driving their career.

Safety concerns: Over the years, working conditions have been tough, with long hours and periods spent on the road, which can lead to driver fatigue. In a previous blog, “Reducing the Risk of Cargo Theft During Transport”, we uncovered some startling statistics surrounding the rate of truck theft.

Increased demand for delivery services: An after-effect of the pandemic is that consumers are shopping online more than in-store for convenience and access to goods from across the globe. An example of this is in the grocery industry, where we are seeing an upward trend in the number of people opting to order their weekly shop online and have it delivered to their front door. Statista.com says the number of users is “expected to amount to 233.40m users by 2027”. This increased demand puts pressure on the whole supply chain.

How do we overcome the driver shortage as an industry?

At ATC, we always listen to our team, clients and industry bodies to find ways to improve conditions for our drivers.

Safety: As we have spoken about previously, all of our trucks are state of the art with modern, spacious cabs and equipped with the latest technologies, including GPS tracking and anti-tamper sensors to deter any unwelcome visitors. We also have strict guidelines regarding rest periods and driver exams to maintain their utmost safety standards.

Industry regulations: At an industry level, the IRU, ITF (International Transport Workers Federation) and GSA (Global Shippers Alliance) have come together to develop a charter for improving the treatment of drivers at delivery sites. This charter details regulations that ensure drivers are met with adequate facilities, including lavatory, shower room, kitchens and social spaces upon arrival at a stop-off point.

Transport Planners: At ATC, our Transport Planners play an integral role for our drivers as they map out the safest route for them to travel and alert them to any potential issues/ alternative routes that they may have to take whilst also touching base and ensuring they have someone to talk to while in transit.

Education is power: The Transport Operations and Commercial Driving Apprenticeship offer an academic qualification, practical training, and work experience supporting a vibrant freight distribution career.

ATC proudly supports this apprenticeship and welcomes new apprentices to join us.

However, it’s not just about this 2-year course. It’s about the support our apprentices get and what comes after they graduate. At ATC, all of our apprentices are allowed to apply for a full-time position with a competitive salary, pension and other benefits.

We spoke earlier about the charter and the importance of creating a social environment for our drivers to enjoy while on the road. We have this in place in all of our locations to ensure they have a sense of community in their home away from home.

Our Leadership and Development Co-ordinator also matches all of our apprentices up with a mentor to look at career progression opportunities so that, as a team, we are all working towards something.

I truly believe that education is power, and combining it with practical work experience along with opportunities for career progression, on top of the remuneration benefits, is what will help to navigate our industry out of the driver shortage storm and attract the younger generation of both men and women to join with us.

Alan Young

Founder and Director

Diesel Vs Electric – The Cost of Ownership for Light Goods Vehicles

As we invest further into alternative fuel sources for our vehicles, with battery electric vans now added to our fleets in Dublin and Frankfurt, I wanted to share some background research that may encourage others to consider phasing out diesel.

While our primary goal of acquiring these vans is to support the environment, there are also several incentives available to companies that reduce the cost of ownership and encourage this move to electric.

For this blog, we are detailing the main incentives we have observed in Ireland and Germany, where our first electric vans will be based.

Toll Reductions

  • Across Europe, electric vehicle drivers will enjoy a 50% discount in toll fees coming into play by 2023. This will dramatically reduce company overheads and spur more companies and households to switch from petrol and diesel engines.

Tax Relief

  • SEAI.ie explain that companies purchasing Electric Vehicles in Ireland will “qualify for a 0% Benefit-in-Kind rate on the first €50,000 of the vehicle value without any mileage conditions.
  • Additionally, In Ireland, any company that pays Corporation tax can deduct the total cost of the Electrical Charger Equipment from their profits in the year of purchase. The reduction in tax paid by the organisation in that year is currently 12.5% of the value of capital expenditure.
  • Over in Germany, state-owned KfW bank provides up to €900 per charging point for purchasing and installing an EV charger.
  • Those in Germany can also benefit from a 10-year tax exemption on electric vehicles, and the motor tax in Ireland is at its lowest band of €120 per year.

Service Costs

  • We calculated that over five years, the cost to service an electric van on average would be €600, with the battery only needing replacement in its 10th year. This compares to an average spend of under €5,000 on a diesel engine van over five years.
  • In Germany, a roadworthiness test must be performed on every car registered three years after it is first registered and then every two years. These tests include an emissions check, and the average cost is €65 – similar to the Irish NCT.

Electric Costs

  • Over five years, it will cost between €7,000 and €8,000 to drive 400KM at 77Kwh compared to just under €40K for a diesel engine.

 

Moving Together in the Right Direction:

While writing this blog, it was encouraging to read that the government’s Commercial Fleet trial is fully booked in Ireland. This trial allows businesses to test out Electric Vehicles for three months, free of charge, to “show, through real-world evidence, the benefits, savings and the suitability and viability of EVs in a commercial setting”.

Furthermore, across Europe, the uptake of electric vehicles, in general, appears to be making steady progress, with the Irish Examiner stating that 25% of vehicles bought in Germany and 21% in The Netherlands are using electricity. At the same time, most cars registered in Norway since 2020 are powered by alternative fuels to petrol and diesel.

While the upfront cost is significant, there is no doubt that the investment in electric vehicles will be recovered through government incentives and overall savings in running costs. More importantly, they are the way forward to lowering emissions.

 

Keith Young 

Managing Director

30 Years of Development in Our Trucks

In the logistics industry, it is imperative that we are equipped with only the best tools in order to do our job and maintain the standard that we and our clients enjoy today.

Our trucks and trailers are not only finished impeccably to the delight of our drivers, but they contain the latest tehcnological advancements, many of which we would not have dreamt about in the earliest versions of our fleet. This got me thinking about just how much our trucks have evolved over the past 30 years and the appreciation that myself and my team of drivers have for the constant advancements that are being made in the industry.

Reducing Our Carbon Footprint

Today our industry is much more regulated when it comes to the environmental impact of our trucks.

We have always kept our finger on the pulse of the latest developments in the builds of our engines, ensuring we have the most fuel-efficient options that are designed to minimise or preferably emit the impact on the environment.

We are very excited to be advancing to another level of development with our trial of HVO aka (green diesel).

 

Real-Time Tracking of Equipment in Transit

Years ago, it was quite difficult for companies to track and trace their goods as they travelled from one destination to the next. Today, all of the ATC fleet is equipped with GPS tracking and communication systems, enabling our clients and transport planners to stay in constant contact with our drivers as they make their way across Europe.

Our fleet also has an anti-tampering system to prevent our trucks from cargo thefts while they are parked at rest stops.

Maintaining Driver Compliance with Electronic Logs

To maintain industry compliance, our drivers must keep logs of the hours they have driven each week, fuel consumed etc. This task used to be quite cumbersome as they were completed manually on paper, not to mention cabin space in the trucks.

Now our drivers have electronic logs that speed up the process of compliance and enable our planners and management team to monitor real-time trends such as driving style.

Achieving Faster Lead Times

Our modern fleet enables the company to be flexible to the varying needs of our clients. Our transport planners complement our vehicle ability by working with our drivers and clients, using AI technology to ensure zero to minimum shipment disruption.

We can’t wait to see what the next 30 years have in store for fleet development.

 

Alan Young

Founder and Director

 

You can check out our full fleet here.