As advised by Operation London Bridge protocol, the IOC quarterly Heads of Industry round table remained on for the day after the funeral. Tuesday Sept 20th at IoD London. A full house, the applause for keynotes was loud, the knowledge and networking well received. A bumper roller-coaster run of afternoon keynotes followed a fellow’s free lunch focused around interaction of best practice.
Callum MacPherson from Investec returned with derivatives update of fuel values.
Expert express final mile lawyer, Melanie Stancliffe spoke part-time implication of holiday pay calculation.
Man from the Ministry, DfT Phil Martin introduced the new outline of ministers and the junior minister appointed today, Lucy Fraser KC.
Keynote from David Petts on Ford Pro e-Transit.
IOC Security group chair, Andy Magromallis, OPAL reports & mail and parcel theft across the heatwave and a review of Operation London Bridge.
DVSA road safety Elizabeth Heaton and Chaz Wright and Manchester TfGM delivered a full clean air update.
The Agenda
20th Sept Heads of Industry round table IoD London. The agenda.
Introductions of the fellows by Carl Lomas MBE – ‘A difficult diary day – fellows were at the table. Over two hundred thousand vans at the IOC round table, SMEs, and regions alongside nationals to discuss energy values to employment law.’
DFT Man from the Ministry - Phil Martin - A new junior minister today – Lucy Fraser KC
Hot off the Press at the IOC round table - Lucy Fraser appointed junior DfT minister today, is also a KC.
A new Sec of State, Anne-Marie Trevelyan and Edward Foster already reported to the IOC Sunday email. These are times of change during the appointment of our new Prime Minister Liz Truss.
Callum MacPherson – Investec - energy values
‘Diesel is not great, but gas and electricity is frightening.’
Speaking beyond fuel - is energy. Gas, oil, and coal. The graph of costs goes off the scale. Gas is dramatically more expensive than oil. Diesel is almost twice the price as Brent. The only thing remains the same is US gas costs. Ukraine impact, pound weakening, diesel is expensive compared to crude oil. War in Ukraine and embargos means Russian refined products are no longer wanted by refineries in Europe. The gas market is used to produce hydrogen and that makes hydrogen expensive. The macro picture, gas typically 50 pence a therm, as a proportion of GDP less than one per cent., on the forward curve for gas as much as five per-cent per therm spent on gas. It’s about supply, the bottom line is we don’t have enough gas in Europe. Good news on US shale production but OPEC not so strong. As time goes by, we hope to see more non-OPEC production such as South America. Switching from gas to oil is a solution but its not that easy. Next year return to one hundred million barrels a day that was pre-pandemic numbers. Britain produces about half its own gas, twenty-five per-cent comes from Norway. Britain has been supplying gas to Europe over the summer but over the winter we import. New nuclear plants take ten years in the planning.
Questions to Callum, ‘Energy as a source, electricity cost, what support can we expect?’ ‘There is not a lot of detail beyond the six-month cap, but this does not address the cause and that’s the lack of gas in the market.’
The one thing you can do is hedge the diesel price risk. You can enter into a fixed swap price of diesel for a period of trade, pricing in Oct (pre duty) was seventy one pence litre.
Melanie Stancliffe speaking on Harper Trust v Brazel: The Supreme Court’s Decision
Gone are the part-time pro-rata holiday pay.
The Govt is live to your sector. Your sector has come onto the govt radar in a big way. Are your couriers’ workers? Are they controlled? Workers have right to holiday pay and sick pay.
Seasonal workers from the Harper Brazel case, right of holiday pay for part time gives full year entitlement not part time! Gone are the days of pro-rata part-time holiday pay. It’s about the average work hours, if you have a part-year worker during peak with big hours, that average will go higher than a regular nine to five persons.
The express world in which we are working. Your sector is growing. We have become more ethical and more sustainable, today we can see drivers in real time. But there remains a shortage of drivers. It’s not just what the contract says, it’s the reality of the relationship. An employee’s work is controlled, what and when we do, and has mutual obligations of work. Govt says if you give work, set the rate, and provide uniform or branding, then you are an employer. Second key point is substitution. Self-employment is where most drivers used to be, but flexibility today brings grey areas. App users beware, if you define the vehicle, they are a worker or employee. This is the basis on where to start to look.
Example of the courier driver, working for a number of organisations (freedom of choice) – Set routes (control) – own van but wear uniform or branding on the van, implication of control and employee. If they drive a set route.
Richard Banks, Senior Manager at TfGM, provided an update on the Greater Manchester Clean Air Plan and, in addition, seeks views on increased collaboration on last mile initiatives.
A no-charging investment-led approach.
We want your views on consolidation centres for Manchester express final mile.
Express final mile operators sector says YES to Consolidation in Manchester.
The case for a clean air plan for Manchester has been submitted to the Sec of State. We are aiming for a nonchargeable clean air zone in Manchester. It was when the signs for Clean Air zones went up that the public profile rose.
Ten authorities working together. Noz reduction by 2026, the job is not causing financial strain, targeting investment at vehicle upgrades. In the last ten months car purchase has fallen, cars are becoming older. Bus investment has grown. Electric bus a strong focus. We are targeting vehicles registered beyond Manchester. We do not want to displace local businesses.
We are considering consolidation centres and request your views.
Operators spoke charging node locations and achievable distance to density of population in the City. Consolidation centres were a phenomenal success for the Olympics. Consolidation Watford for London is a great system. Consolidation must extend beyond London.
Andy Magromallis, Operation London Bridge
The IOC security group has become strongly engaged, Operation London Bridge, the largest UK operation ever delivering ten thousand police. The IOC advised road impact to express final mile for Operation London Bridge over ten months ago. During the ten days IOC security members got double day updates on safety and security from counter terrorism to road access in the heart of SW1. Deliveries were delivered. Quarter of million took the long walk, beware there will be reunions of this, and a coronation is likely to mirror the dates next year. Looking beyond Op London Bridge, the OPAL national crime reports are being circulated to all of the IOC group – Rover two hundred thousand theft from motor vehicles recorded, how many of those are actually parcel theft from vehicle? Cross vision to the earlier employment keynote as to who reports theft from vehicle when it’s a third party driver?
Check the IOC web for posters and put them in front of your drivers for protect and county lines.
DVSA – recognising road safety Chaz Wright
Recognition for road safety. DVSA are building public confidence in safety with a new scheme to officially welcome recognition of safety on the roads. In the first tranche 22 applications, 8 recognised, driver road safety, road furniture, aged driver training amongst the recognised schemes. DVSA want to see well designed well delivered safety schemes, no time limit.
The link to the detail – https://www.gov.uk/guidance/get-your-road-safety-product-or-scheme-accredited-by-dvsa
David Petts Ford e-Transit update – 14,000 eTransit so far. The e-Connect arrives next year
Lead time today is early part of next year and that’s similar to diesel.
EV gives Cat B 4.25 tons to 3.5 tonne licence.
The Ford Motor company, Ford Pro are committed to zero emission by 2035 but expect to be at 80% of target by 2030. eTransit production has begun, so far 14,000 across Europe and UK takes the lions share, Next year we start e-Connect van. Real World charge time is circa seven hours. Twenty-five models, three powers to take advantage of the weight category. We have pre-conditioning modes, warm the van and battery in the morning. We can convert telematics to energy consumed in your fleet and then we can tell you best balance between electric and diesel. Supply times, lead time for EV or diesel is early next year, chip supply is an issue, today we even have chips in headlamps. Charging at home or in depot is both a lot cheaper than diesel. David explained cat B licence access beyond three and a half tons to four and a quarter tonnes on a car licence for younger drivers if the van is electric. David talking a blue-sky view is solid state batteries, they will charge quickly but be heavier so more of a challenge to commercial vans.
Wrapping Up - Dr Tracey Worth – National Courier Awards – Q&A
Callum MacPherson – Investec - energy values
Melanie Stancliffe keynote on express sector employment
IOC security group chair Andy Magromallis speaks Op London Bridge
TfGM Richard Banks on Manchester Clean Air Zones
