To measure the impact of the Covid-19 lockdown on the transport and distribution industry, MT has put together a panel of operators across the UK to give regular feedback on their volume of work and vehicles laid up.
The good news is that volumes for most operators surveyed have stabilised after a turbulent couple of months, and the furlough scheme is still working as no staff have had to be made redundant.
With some exceptions most lenders are also being sympathetic to requests to defer payments on trucks so very few trucks have been sold – though one operator commented that one reason for that is “no one is buying”.
Cullimore Group
Moreton Cullimore
MD
Coverage: UK, but predominantly the Midlands and South West.
Main business sectors: Transport and general haulage, aggregate supply and ready mixed concrete.
18 May 2 June
Trucks on fleet 60 60
Percentage laid up 90% 85%
Drivers employed 50 50
Percentage on furlough 88% 85%
Have you disposed of any trucks since March 23?
No, no one’s buying.
How do you fund the acquisition of trucks?
Asset finance from bank.
Have you had discussions with your lenders or leasing company about deferring payments?
Yes and we have been given a three month holiday.
Have you had to make any drivers or other staff redundant since March 23?
No.
Owens Group
Doug Jeffery
Group general manager
Coverage: UK mainland.
Main business sectors: FMCG, steel, retail, express and home delivery, construction and automotive.
Between 18 May and 2 June we have seen a further 8% increase in volumes.
18 May 2 June
Trucks on fleet 300 340
Percentage laid up 16% 6%
Drivers employed 656 656
Percentage on furlough 10% 5%
Have you disposed of any trucks since March 23?
Yes – end of contract and not renewed due to reduction in volumes.
How do you fund the acquisition of trucks eg cash, bank loan, leasing, contract hire, hire purchase etc?
All of the above are used.
Have you had discussions with your lenders or leasing company about deferring payments?
Yes. They have been very positive with payment holidays being agreed by some.
Have you had to make any drivers or other staff redundant since March 23?
No not to date but this may be required going forward.
Clipper Logistics
Mick Doe
Transport operations director
Coverage: UK from 13 transport operations with a higher presence in the ‘golden triangle’ and South East of England.
Main business sectors: Retail fashion and high value goods including pre-retail, e-commerce, storage, store replenishment transport solutions and returns management; technical services for brown goods.
We have seen no change in volumes since mid May.
18 May 2 June
Trucks on fleet 450 450
Percentage laid up 22% 22%
Drivers employed 450 450
Percentage on furlough 20% 20%
Have you disposed of any trucks since March 23?
No.
How do you fund the acquisition of trucks?
We lease vehicles.
Have you had discussions with your lenders or leasing company about deferring payments?
Yes, but these have proved extremely difficult and they are still ongoing.
Have you had to make any drivers or other staff redundant since March 23?
No.
Roger Warnes Transport
Ian Barclay
Operations director
Coverage: UK mainland.
Main business sectors: Bulk agricultural and construction sectors.
Business activity is trending upwards but unpredictably with daily demand fluctuations greater than ever before. People “getting back to the office” is actually helping us with more complete and reliable customer contact.
18 May 2 June
Trucks on fleet 108 108
Percentage laid up 44% 18.5%
Drivers employed 114 111
Percentage on furlough 20% 18%
Have you disposed of any trucks since March 23?
No.
How do you fund the acquisition of trucks?
Cash with small interest free HP arrangement.
Have you had discussions with your lenders or leasing company about deferring payments?
One leased vehicle supplied as a “seed” by Truck East Scania which has been put on SORN and a three month payment holiday. Most suppliers have been positive, supportive and very flexible.
Have you had to make any drivers or other staff redundant since March 23?
No.
Caledonian Logistics
Derek Mitchell
MD
Coverage: Four DCs cover half of Scotland including islands. Distance division covers mainland UK.
Main business sectors: Pallet distribution, general goods, food products and storage services.
Between May 18 and June 1 full load work is now only down about 5%. Pallet distribution was down about 30% but is now at around 20%.
18 May 2 June
Trucks on fleet 74 74
Percentage laid up 10% 10%
Drivers employed 98 98
Percentage on furlough 22% 20%
Have you disposed of any trucks since March 23?
No.
How do you fund the acquisition of trucks?
Contract hire and HP.
Have you had discussions with your lenders or leasing company about deferring payments?
Yes and the majority have given payment holidays, though some have wanted extra admin charges.
Have you had to make any drivers or other staff redundant since March 23?
No.
Stagefreight
Ian Uttley
Director
Coverage: UK mainland.
Main business sectors: Live events, theatre and music tours, conferences and exhibitions, and general haulage.
We have started quoting on event work again, but 96% of it is for 2021 as the events industry is still in lock down. However our general haulage movements have risen by 26%.
18 May 2 June
Trucks on fleet 30 30
Percentage laid up 50% 45%
Drivers employed 26 26
Percentage on furlough 50% 45%
Have you disposed of any trucks since March 23?
No.
How do you fund the acquisition of trucks?
HP or outright purchase.
Have you had discussions with your lenders or leasing company about deferring payments?
Yes. They were very helpful, and have all given a payment break without hesitation.
Have you had to make any drivers or other staff redundant since March 23?
No.
Freightlink Europe Freight Train/Freight People
Lesley O’Brien
Partner
Coverage: UK national.
Main business sectors: General haulage transport operator predominantly serving the import and export community.
18 May 2 June
Trucks on fleet 24 24
Percentage laid up 33% 20%
One subcontractor working for us on 23 May and two subcontractors on 2 June
Drivers employed 22 22
Percentage on furlough 33% 20%
Have you disposed of any trucks since March 23?
No but five vehicles came to the end of their contract hire. They are on standby awaiting return on a new contract – two returned on 1 June.
How do you fund the acquisition of trucks?
Hire purchase and contract hire.
Have you had discussions with your lenders or leasing company about deferring payments?
Most companies are offering three months, but Lombards are actually offering six months. We have arranged payment holidays with Paccar on the above contract hire. Although the contract hire came to an end in order for it to be reinstated it had to be considered as a continuation of agreement. We have also arranged a payment holiday with Iveco. Regretfully Mercedes are not very customer friendly or proactive unless they are trying to sell a vehicle. It is however the suppliers who work with us now who will undoubtedly be our future partners.
Have you had to make any drivers or other staff redundant since March 23?
No.
Miniclipper Logistics
Jayne Masters
Sales director
Coverage: UK national.
Main business sectors: Pallet networks, warehousing and hazchem.
Volumes increased by 7% between May 18 and June 1.
18 May 2 June
Trucks on fleet 27 26
Percentage laid up 0% 7.7%
Drivers employed 36 36
Percentage on furlough 0% 22.2%
Have you disposed of any trucks since March 23?
Yes, one which was out of contract.
How do you fund the acquisition of trucks?
Mixture of lease and HP.
Have you had discussions with your lenders or leasing company about deferring payments?
We had a precautionary call to see what the response would be if the need arose with the vehicle lease company. The response was very positive, offered to give payment holiday on a monthly basis.
Have you had to make any drivers or other staff redundant since March 23?
No.
Turners Group
Paul Day
Managing Director
Coverage: UK national.
Main business sectors: Temperature controlled, containers, tankers and general haulage for transport and temperature controlled warehousing and packing services.
Between May 18 and June 1 there was generally a continued gradual improvement in all sectors bar aviation which remains virtually closed down.
18 May 2 June
Trucks on fleet 1,872 1,925
Percentage laid up 14.6% 12.2%
Drivers employed 1,997 2,125
Percentage on furlough 20% 15%
Have you disposed of any trucks since March 23?
Very few.
How do you fund the acquisition of trucks?
Cash.
Have you had discussions with your lenders or leasing company about deferring payments?
No discussions required.
Have you had to make any drivers or other staff redundant since March 23?
Yes, a small proportion as yet but we will have to consider this dependent on the recovery of each sector.