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Oct 21, 2010

TRUCKING MARKETS * Europe - New report sees polarisation of European road freight market

 Medium-sized players will find it difficult to survive


London,EN,UK -Transport Intelligence, by John Manners-Bell -13 Oct 2010: -- The European road freight market will become increasingly dominated by the major operators whilst medium-sized players will find it difficult to survive. This is one of the conclusions of Transport Intelligence's latest report, European Road Freight 2010... The report finds that the economic downturn left the European asset-light networks in an even stronger position with many of them able to increase their margins at the expense of their asset-owning suppliers. At the same time, the mid-sized players have been squeezed by small and micro-enterprises, which have a significantly lower cost base... The lack of barriers to entry and exit mean that the lower end of the market is often in a state of continual flux, which has the effect of driving down rates – good for shippers and asset-light networks which use owner-drivers, but not for the mid-market asset owners... The situation will be made worse for medium-sized companies by further labour and environmental regulations planned by the European Union. Although companies of all sizes will be affected, medium-sized players find it more difficult to cope with the maze of regulations with which they need to comply. Larger rivals are better able to absorb these costs...  (Photo from cordis.europa.eu)



* UK - Row over EU plan to standardise lorry sizes. New rules could see tall trucks banned in a bid to meet EU restrictions

Edinburgh,SCT,UK -The Herald/Scotland, by Damien Henderson -20 Oct 2010:  --  Ministers are braced for a row with Europe over plans to standardise the size of trucks after warnings from a leading academic that the move could lead to a dramatic increase in the number of HGVs on Britain’s roads...   Professor Alan McKinnon, an expert in haulage at Heriot-Watt University in Edinburgh, said moves to introduce a standard height of 4m to all new lorry trailers built in Europe would lead to about 7000 double-decker trucks currently in use in the UK being gradually phased out...   He claimed proposals drawn up by the European Commission would exact a “high price” environmentally as trucks would have to travel about 4.5% further to deliver the same quantity of goods, becoming less fuel-efficient and adding about £305 million to the costs incurred by the haulage industry...   He said the figures were significantly higher than anticipated...


* UK - Denby says current truck design is wasteful

Lincoln,Lincolnshire,UK -Road Transport, by Steve Hobson -20 October 2010: -- The existing design of HGVs is "wasteful" and adds to the cost of living for everyone, Dick Denby, director of Denby Transport, told today's Road Transport Group Fleet Management Conference... Fourty-seven "LHVs" replace 74 standard artics and instead of buying three tractor units and trailers operators could move more goods at a lower cost by investing in two B-doubles... Since Denby tried to force the government's hand by taking his Eco-Link onto public roads, he has had further a meeting with the Department for Transport (DfT)... (Photo from mortons.mortonsmedia.net)

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