May 17, 2020

New fuel management system measures natural gas use

Breakthrough Fuels
LNG. Liquefied Natural Gas
Natural Gas
Freddie Pierce
2 min
Natural gas has less emissions than other fuels
USsupply chain management and energy advisory firm,Breakthrough®Fuel has launched a new product which will allow shippers to accurately measure nat...

US supply chain management and energy advisory firm, Breakthrough®Fuel  has launched a new product which will allow shippers to accurately measure natural gas fuel costs associated with moving company freight throughout the North American market. 

The company, which uses a range of patented tools and business methods to calculate fuel costs, has developed a new tool which measures the costs associated with natural gas, adding to its range of fuel management systems, which has saved companies over a quarter of a billion dollars since its inception in 2004.

 “We heard from our clients that they wanted a solution similar to our diesel Fuel Recovery products that allows them to manage and project costs associated with using natural gas as a transportation fuel,” said Craig Dickman, CEO of Breakthrough®Fuel. “The Natural Gas Fuel Recovery product is a perfect complement to our other, patented fuel management tools. The response has been very positive.”

Over the past five years, natural gas has become an increasingly attractive source of fuel for the commercial transportation market.  It is no longer unusual to see commercial vehicles using Liquefied Natural Gas (LNG) or Compressed Natural Gas (CNG) as a fuel source. There are a number of reasons behind the trend, according to DIckman.

“Natural gas tends to be a lower cost and price-stable alternative to diesel fuel,”he said.  “The supply generally comes from within North America and there’s more than 200 years’ worth of the current supply at hand.” Natural gas as a fuel is also becoming more convenient to use as truck stops across the US are adding or building natural gas refueling stations.

Another advantage is that natural gas has up to 21% less emissions than ultra-low sulfur diesel fuel. “Anytime you can lessen your carbon footprint, that’s a good thing,” Dickman stated. “As companies become more focused on sustainability, they are moving toward using both natural gas and diesel as fuel sources for shipping. With our products we can help them measure, manage and project their costs, which helps improve their bottom line.”

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Jun 19, 2021

Driver shortages: Why the industry needs to be worried

Logistics
SCALA
supplychain
Brexit
Rob Wright, Executive Director...
4 min
Logistics professionals need urgent solutions to a shortage in drivers caused by a perfect storm of Brexit, COVID-19 and compounding economic factors

While driver shortages are a global problem, with a recent survey from the International Road Transport Union suggesting that driver shortages are expected to increase by 25% year-on-year across its 23 member countries, the issue has very much made itself felt for UK businesses in recent weeks. 

A perfect storm of factors, which many within the industry have been wary of, and warning about, for months, have led to a situation wherein businesses are suddenly facing significant difficulties around transporting goods to shelves on time, as well as inflated operating costs for doing so. 

What’s more, the public may also see price rises as a result due to demand outmatching supply for certain product lines, which in turn brings with it the risk of customer dissatisfaction and a hit to brand and stakeholder reputation. Given that this price inflation has been speculated to hit in October, when the extended grace period on Brexit customs checks comes to an end, the worst may be yet to come.

"Steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole"


That said, we have already been hearing reports of service interruption due to lack of driver availability, meaning that volumes aren’t being transported, or delivered, to required schedules and lead times. A real-world example of this occurred on the weekend of 4-6 June with convenience retailer Nisa, with deliveries to Nisa outlets across the UK affected by driver shortages to its logistics provider DHL.

But where has this skills shortage stemmed from? 

Supply is the primary issue. Specifically, the number of available EU drivers has decreased by up to 15,000 drivers due to Brexit alone, and this has been further exacerbated by drivers returning to their home country during the COVID-19 pandemic, as well as changes to foreign exchange rates making UK a less desirable place to live and work. This, alongside the recent need to manage IR35 tax changes, has also led to significant inflation in driver and transport costs.

COVID-19 complications have also meant that there have been no HGV driver tests over the past year, meaning the expected 6,000-7,000 new drivers over the past year have not appeared. With the return of the hospitality sector we understand that this is a significant challenge with, for instance, order delivery lead times being extended.

It is little surprise, therefore, that the Road Haulage Association (RHA) earlier this month became the latest in a long line of industry spokespeople to write to the government about the driver shortage for trucks. The letter echoed the view held by much of the industry, that the cause of this issue is both multi-faceted and, at least in some aspects, long-standing. 

So, many in the industry are in agreement as to the driving factors behind this crisis. But what can be done? 

Simply enough, outside of businesses completely reorganising their supply chain network, external support is needed. In the short-term, the government should consider providing the industry with financial aid, and this can also be supported more widely with legislative change. 

Specifically, immigration policy could be updated to place drivers on the shortage occupations list, which would go some way towards easing the burden created by foreign drivers returning to their home countries. Looking elsewhere, government should also look for ways to increase the availability of HGV driver tests after the blockage created by the coronavirus lockdowns.

Looking more long-term, steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole. As it stands, multiple sources suggest that the average age of truck drivers in the UK is 48, with only one in every hundred drivers under the age of 25. We must therefore do more to increase the talent pipeline coming into the industry if we are to offset more significant skills shortages further down the line. 

On the back of a turbulent year for the supply chain industry, it has become increasingly clear that the long-foretold shortage of drivers is now having a tangible and, in places, crippling effect on supply chains. 

Drivers, and the wider supply chain industry, have rightly been recognised for the seismic role they played in keeping the nation moving and fed over the past year under unprecedented strain. If this level of service is to continue, we must now see Government answer calls to provide the support the sector needs, and work hand-in-hand with the industry to find a solution. If we do not see concrete action to this effect soon, we are likely to be in for a turbulent few months. 
 

Rob Wright is executive director at SCALA, a leading provider of management services for the supply chain and logistics sector

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