Print

Posted in:

RAC Insurance issues best practice business tips for commercial fleet managers

From a transport company perspective, key legislative changes and issues over the next 12 months include the introduction of Euro 6 engines, the arrival of the French Ecotax system and the impact of the Driver Certificate of Professional Competence (Driver CPC) on professional drivers with “acquired rights”.

Euro 6 engines

Its twenty years since the first Euro 1 engine legislation was introduced for trucks and buses by the European Commission in order to cut pollution caused by commercial vehicle tail pipe emissions.  Further legislation over the ensuing years has seen the introduction of Euro 2, 3, 4 and 5 standards.  From the 1st January 2014, all new trucks will have to meet tough new Euro 6 requirements which will result in a dramatic reduction in the emission of Nitrous Oxides and ‘Particulate Matter’.

French Ecotax

A new HGV “eco-tax” is being introduced by the French Government. This new tax is due to take effect from the 1st January 2014.  The aim of the tax is to encourage shippers to consider more eco-friendly modes of transport such as river, sea and rail.

The tax will apply to all goods-transport vehicles over 3.5 tonnes that use the 15,000 km of nationally managed roads in France. That principally includes free motorways and free national highways though certain local roads may also be included.

In order to collect the per-kilometre tax, every HGV must be fitted with an On Board Unit (OBU) which is an easy to install GPS-based device that calculates the amount of eco-tax due based on the distance travelled on roads to which the eco-tax applies.

UK-based road transport operators involved in the carriage of goods over the nationally-managed French road network need to take immediate steps to ensure their trucks have a suitable OBU fitted by the 1st January.

Ecotax compliance will be heavily monitored by the relevant government authorities, including French customs and police conducting checks to ensure compliance. Potential penalties for those caught not adhering to the Ecotax regulations include a fine of up to €750 for every violation, immobilisation of the vehicle and a flat rate fee that corresponds to a 500km trip which will be doubled if the violation happens again within 30 days.

Driver CPC

Those that are new to professional driving must get a Driver Certificate of Professional Competence before they can drive an HGV, bus or coach.  Existing professional drivers have been granted what are termed ‘acquired rights’. The issue facing haulage companies is that if a lorry driver has ‘acquired rights’, he or she must complete their 35 hours of periodic training by the 9th September 2014.  Coach drivers in a similar position had until the 9th September 2013 to complete 35 hours periodic training.

The worry is that some of those experienced lorry drivers may decide to leave the profession rather than obtain their Driver CPC leading to driver shortages. Transport companies employing professional drivers requiring a Driver CPC by the 9th September 2014 need to do all they can to ensure that their driver workforce can continue to drive after that date.

As a duty of care to the drivers in your fleet it is important to keep abreast of the changes to motoring laws and legislation and keep everyone well informed of anything which may influence the jobs that they do.

As a prime example, in August new powers were handed to police to issue on the spot fines to careless drivers across Britain which hog middle lanes or tailgate. Under the new measures drivers can be stung by a £100 fine and three points rather than being taken to court. As part of the changes to legislation, fixed penalties for a number of offences, including using a mobile phone or not wearing a seatbelt while driving, have risen from £60 to £100.

The new rules will be a blessing for all responsible motorists who are frustrated by the driving behaviour of other road users, but it is important to ensure members of your fleet are aware of the new police powers.

Similarly recent research from RAC highlighted that motorists are unaware of different legislation when travelling abroad. For example 68% of motorists are unaware that it is compulsory to carry a French authority certified breathalyser in their car at all times. As a fleet manager do you make sure those who travel abroad for work are aware of these sorts of laws?

It is important not only to be aware of news such as this but also to share it with the wider fleet – if you haven’t already then be sure to schedule a briefing for all drivers on these topics.

Understanding and recognising the issues which can have a negative effect on the well-being of a fleet is important for any business and goes beyond simply providing driver training. While this will help drivers avoid risks and distractions such as eating, smoking, using a mobile phone, tailgating, dangerous manoeuvres and aggressive behaviour, there are other fatigue-related issues which are often overlooked.

Finding the time and money to ensure drivers are as safe as possible when behind the wheel is difficult in the current economic climate, but risk management should be a priority for firms as it provides a series of business benefits.

It can help yield substantial fuel bill savings, reduce accident frequency leading to lower insurance premiums and minimise the risk of any criminal charges following an accident. However most importantly it can identify the people most likely to have an accident and ultimately prevent accidents from happening.

Progressive businesses which implement this effectively often have a culture for safety, run effective and comprehensive risk assessments, provide excellent driver training, put in place effective driver incentive programmes designed to reward safe and fuel-efficient driving, and have deployed appropriate telematics. Fleet managers should consider all of these factors when reviewing the responsibilities they have to their fleet.

Corporate Social Responsibility is a key issue for those involved in the transportation industry given the environmental impact of all modes of transport, road transport being no exception.

Transportation generates air pollutants and greenhouse gases.  There is also the potential impact of oils and lubricants should they find their way into water courses and the land, hence the regulations relating to their disposal.

Customers needing to move goods are likely to be encouraged, not least by their own customers, to seek out the least polluting mode of transport.  This means transport companies promoting sound eco-credentials are likely to benefit at the expense of rivals taking a less-enlightened stance. This points to the need for transport companies to do all they can to cut their carbon footprint.

Those that manage fleet vehicles can – and many already do – take a whole variety of measures to ‘green’ their fleet thereby reducing their environmental impact.  These include steps such as choosing tyres with lower rolling resistance, regularly checking tyre pressures and alignment, selecting the best quality fuels, regularly changing oil and replacing air filters, training drivers to drive in a safe and fuel efficient manner and optimising route planning and load space utilisation.

More and more firms realise that one size does not fit all when it comes to fleet profile and that something more akin to an urban delivery vehicle makes more sense with smaller loads.

Hybrid commercial vehicles are now emerging which might yield fuel savings of possibly as much as 30% to 50% compared with some conventional diesel engines.  So when the time comes to change a vehicle, think about whether a hybrid might make sense from an overall cost benefit and environmental footprint perspective.

Replacing older trucks with new will inevitably, from the 1st January 2014, result in a greener fleet from a Nitrous Oxide and Particulate Matter perspective given the impact from that date of the Euro 6 engine legislation.

Given customers’ expectations and requirements when it comes to reducing their carbon footprint, think carefully how you can build an even greener business that benefits your business at the expense of your competitors.

Despite the wholesale cost of fuel falling in recent weeks due to a combination of Syria agreeing to sign an international treaty banning chemical weapons and the pound reaching a seven-month high, prices at the pumps have remained unchanged.

The cost of fuel has been a heavy burden for UK businesses and consumers for many months and will likely continue to be for some time.

With this in mind fleet managers should be paying close attention to the fuel efficiency of their fleet in an effort to find new ways of achieving greater fuel economy. One way in which business owners and fleet managers can do this is by introducing telematics, although it is important to carefully select a solution which meets business requirements.

The RAC forecasts its new telematics technology can provide firms with fleets as small as 15 vehicles, savings of more than £23,000 a year in administration. The in-car unit is available for just a few pence a day and is able to track the mileage and driver behaviour of each vehicle, along with providing HMRC-compliant mileage records.

In addition fleets can save up to 15% on their annual fuel bills thanks to a "driver score" function that allows fleet managers to monitor how efficiently their vehicles are being driven and highlight those within the fleet that may benefit from a driver training course. The device can also help to lower insurance premiums as it gives insurers the ability to use data on driver behaviour, car condition and mileage to more accurately tailor premiums as well as helping to decide who is at fault in the event of a collision. RAC Fleetcare+ provides a similar telematics based insurance solution for the haulage industry.

For more of the latest industry news, click here.