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A Look at What 2021 Holds for Logistics

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It’s no surprise that 2020 has been challenging but with 2021 only just beginning we have hope for a brighter year. In light of this, we are taking a look at what the new year holds for logistics – hopefully, less of the same four walls.

Despite the challenges last year brought, logistics as a whole carried the nation forward, delivering goods throughout the pandemic. And with the impact that lockdown had on the UK’s online shopping habits, business was as demanding as ever. According to the Office for National Statistics, internet shopping in May 2020 accounted for 32.8% of total retail sales, up from 18.1% the previous year.

This momentum is expected to carry on throughout this year, especially as the economy battles through a transition from recession back to the booming economy that we all enjoyed before COVID-19

Warehouse Automation

In a socially distanced world, we can expect to see an increased reliance and investment in both warehouse automation and artificial intelligence (AI). Warehouse automation, such as pick and place technologies, improve efficiency, speed and productivity by reducing human interventions. AI is set to play a key role in logistics in future years, with uses in haulage when it comes to route planning and prediction, as well as in warehouse management through the prediction of rotation of supplies.

Logistics companies are also aiming for a more elastic approach to cope with demand spikes or falls caused by major events such as holidays and lockdowns. Elastic logistics typically means using a transportation management system (TMS). When combined with AI advancements, a TMS acts as an early warning system to help to forecast risks, costs and demand to ensure the “on-demand” delivery that consumers now expect.

Sector Growth

According to JTL Truck Driver Training’s Trucking Industry Outlook for 2021, increased driver hiring, wages, and demand are all expected for 2021. As the Coronavirus vaccine is distributed across the UK, more specialised cold chain equipment and drivers will be needed. Between shipping the vaccine and accompanying goods as well as essential items, trucking companies will need more drivers to deal with the increased demand. This increased demand means drivers will be better paid and have higher job security.

Green, Green, Green

The drive towards net-zero will play a significant role in the future of logistics. The sustainability drive is particularly integral to future transport developments, including vehicle pollution problems. In central London, for example, 2019 saw the introduction of the world’s first Ultra Low Emission Zone (ULEZ) and Clean Air Zones (CAZs) are set to launch in Bath on 15 March 2021 and Birmingham on 1 June 2021.

With further CAZs forecast, the logistics sector will have to juggle efficiency with sustainability measures. In the short term, this might mean fitting abatement technology to purify emissions or upgrading transport methods to fully electric.

The Internet of Things

The Internet of Things (IoT) will help to drive value within the supply chain by connecting nearly everything together, from people to parcels. The data provided by IoT devices allows logistics companies, among other benefits, to track shipments in live time and predict crucial maintenance. The same technology allows consumers to check when their much-needed parcel has left the warehouse and been delivered to their door, helping to reduce theft. And if internet shopping is to maintain its increase in numbers then this data will be invaluable to both logistics operators and the consumer.

With 2020 behind us, and a look forward providing much to talk about, join the conversation via our Twitter and LinkedIn pages. What do you think 2021 holds for the future of logistics?

Will Freezing Fuel Duty Help Logistics Recover?

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According to FleetNews, Chancellor Rishi Sunak is considering ending a ten-year freeze on fuel tax in his upcoming Autumn Budget, which could see fuel duty increase by 5p. This measure is rumoured to be be considered due to the Coronavirus crisis and the impact that it has had on the country’s economy. However, organisations such as FairFuelUK which is backed by the Road Haulage Association (RHA) and Logistics UK (formerly FTA), has said it will “fight tooth and nail” against these plans.

Today, we’re looking at how a continued freeze of fuel duty will aid the recovery of the logistics industry following the hard times that it too has endured following the Covid-19 pandemic.

What Could A Hike In Fuel Duty Mean?

If the end to the freeze on fuel duty occurs during the Autumn budget, then this will bring a myriad of implications for those working in the logistics industry. From drivers, to company owners – the impact will be felt across the board.

According to FairFuelUK, UK drivers are still the most taxed in the world. They also predicted that had the fuel duty escalation continued as planned from 2011 onwards, as opposed to the freeze that was introduced, fuel duty today would be 83.33p per litre rather than 57.95p per litre, 43.8% higher. A serious expense for household drivers, as well as logistics companies.

A lift on restrictions on fuel duty this Autumn means that the price per litre that is paid for fuel can increase to no end. Currently, rates are capped at 57.95 pence per litre for petrol and diesel, but a lift of this freeze in prices could see this figure rise by as much as 5p.

An increase of this magnitude could seriously impact the recovery of the logistics industry following months of uncertainty. Higher fuel costs, meaning the price per job increases and either profit margins get lower, or prices have to increase. Either outcome is not favourable for logistics providers and their clients, this is why the industry must rally behind the likes of FairFuelUK, who are imploring the Government to consider the logistics sector, and what the end of the freeze on fuel tax could mean for it.

How Freezing Fuel Duty Will Aid Recovery

On the other hand, if a more favourable outcome is found in the Autumn 2020 budget, namely a continuation of the freeze on fuel duty, then this can help to aid the recovery of the logistics sector after months of hardship.

According to TouchStar, at the end of March, 76 per cent of respondents for a Logistics UK survey, reported a general downturn in business and by 3rd April, 69.5 per cent of companies had scaled back or suspended operations. Though many are now reporting an increase in normal supply chain performance, weeks of affected business has in no doubt put a strain on the industry. Whilst it recovers, a continued freeze of fuel duty would help contribute to the recuperation of the sector and ensure that profits do not take any further hits.

Not having to budget for an increased fuel cost, will mean more revenue can be set aside for innovation within businesses, as well as logistics recruitment. Both are important for the future of the sector, with the latter being crucial in targeting the skills gap in logistics.

A freeze will give the industry the chance it needs to get back on track, and to continue servicing the country in the way that it did post, and even during, national lockdown. What are your thoughts? You can interact with us on Twitter and LinkedIn, and remember you can engage with FairFuelUK to help to urge the chancellor to continue with the fuel duty freeze this autumn.

The Unseen Covid-19 Key Workers: Logistics

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The Department for Transport recently announced that the current limited drivers’ hours relaxation will be extended until at least 11:59pm on Tuesday 21 April 2020; this will apply to all road haulage operations. Why? Because logistics is a fundamental operation in the fight against Covid-19 right now.

This announcement came following the mounting pressure on transport and distribution as the Coronavirus outbreak has seen a sharp increase in demand in a number of industries. The Government has taken steps to ease the pressure on drivers and to ensure that the country is getting all of the supplies it needs right now.

Amongst the other vital key workers that are keeping the UK operating throughout this pandemic, there are numbers of delivery drivers who are also working tirelessly to keep our shops full, our pharmacies supplied and our country afloat.

Temporary Covid-19 Limited Drivers’ Hours Relaxation: What’s Been Lifted?

Before the Covid-19 epidemic, ‘HGV driver hours’ were in place, under current EU regulations (that still included those operating just in the UK), the rules were:

  • 9 hours daily driving limit (which can be increased to 10 hours, twice a week).
  • Maximum of 56 hours weekly driving limit.
  • Maximum of 90 hours fortnightly driving limit.
  • There should be a 45-minute break for every 4.5 hours of driving.
  • Breaks can be split into two (e.g. 15 mins and 30 mins) so long as they are both taken every 4.5 hours.
  • Drivers should take a daily rest period of 11 hours, this again can be split but both periods need to be uninterrupted, this can be reduced to 9 hours daily rest period but only 3 times per week.

However, since the Coronavirus pandemic changed life as we know it, these restrictions have been temporarily redacted to accommodate for the increased demand in transport and logistics across the board. This means that hauliers can operate outside of these rules and longer hours can be worked.  

Richard Burnett, Chief Executive of the HRA, commented that the relaxation: “Improves resilience in a way that ensures all goods can reach the area where they are needed.” 

What Do The Lifted Restrictions Mean For Hauliers?

In short, this temporary lift will mean that HGV drivers will be able to better accommodate the increase in demand for their services during this time.

It may see hauliers working longer hours, but as unseen key workers in the Covid-19 fight, their determination and willingness is what will help keep our economy ticking along in all respects.

How To Look After Your Mental Health While On The Road

There’s no doubt that these are concerning times for us all right now, whatever industry you operate in. Logistics drivers are, albeit rather unseen, instrumental key workers during this pandemic. As such, longer hours may sometimes be required, especially following the temporary pause on EU regulations.

Working under pressure and for longer in a day might bring about some strains on your mental health. Working in logistics is an opportunistic and exciting career, but as with any line of work, it has its challenges too. Here’s some of our top advice for looking after your mental health when working longer hours:

  • Open a window – when driving on A-roads and along streets, opening a window and allowing yourself to absorb some vitamin D may make a difference to your wellbeing. We’re fortunate to have pleasant weather in the UK at the moment (but who knows for how long) – make the most of it.
  • Play some music – clinical trials have proven that music can help boost your mood and reduce anxiety, the current climate is stressful, so allow yourself to relax a little with a playlist of your favourite songs.
  • Focus on the positives – make a note, whether that be a mental note or a written one, of all the things to be positive about, it’ll help to keep you grounded when things get stressful.
  • Remember you’re doing great – and finally, it’s important to remind yourself that you’re amongst Britain’s key workers, who are working tirelessly and selflessly in the face of a pandemic to keep the country running efficiently. Without HGV drivers, our shelves would be barren, our healthcare system would struggle and there’d be a plethora of other implications. When times get testing, remember why you’re working in logistics and who you’re working for.

What are your opinions on the Governments temporary relaxation of EU driving restrictions, do you welcome them or oppose them? Let us know on Twitter.

The Barnes Group is one of the UK’s leading providers of logistical support and warehousing to time critical businesses. With over 80 vehicles in our fleet, we support a nationwide client base. For more information about us and how we can support your business with logistics, in these unprecedented times and thereafter, get in touch.

What Can You Expect From Working In Logistics?

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Have you ever considered a career in logistics? It’s no big secret that the logistics sector has a skills gap, largely a generational one. Research from Unite shows that just 1% of HGV drivers in the UK are aged under 25. Not only this, but there’s a proven gender disparity in the logistics industry too. Just 2% of the global logistics industry is female, indicating that a clear gap is present. However, working in logistics has a whole host of benefits.

 

So why is there such a recruitment shortage in an industry that’s so accommodating and rewarding? Perhaps the polarity in employees is merely down to a lack of education. Which is why, in this blog post, we’re exploring what it’s like to work in logistics. We’ll traverse the sector and explain why this is a great career option for all ages and genders.

 

One of the first things you can expect from working in logistics is a career that’s indisputably rewarding. It’s a simple fact of the matter that without logistics, everyday life would look entirely different. As a HGV driver, you’re responsible for the safe passage of countless goods that are used for a variety of purposes. From gifts to groceries, every time you turn on your engine, you’ll be transporting a load that’ll be important to a great deal of people. To put the importance of logistics into perspective, it was recently found that over 130 billion cards and parcels are delivered around Christmas time. Imagine all the unhappy faces if logistics didn’t ensure the safe passage of these items.

 

Furthermore, you can expect employment where you are not disregarded due to your level of education. A great deal of logistics-sector employers will take on people with very little experience, those with a relevant and specialised degree, as well as those with decades worth of experience under their belt. Unlike most industries, you don’t need a very specific education and career path to be rewarded with a great role in the logistics industry. So if you’re wondering how to start a career in logistics, you can feel safe in the comfort that it is possible without taking the higher education path, which isn’t for everybody.

 

You can also expect to work in a job where no two jobs are the same. Boredom isn’t a word you’ll find in most logistics employees’ vocabularies, as working in this sector is exciting and unpredictable. No matter what department you opt to work in, there’s every chance that with a career in logistics, you’ll get to explore parts of the UK – and even Europe – that you’ve never seen before. You’ll be interacting with different people, and having new experiences almost every day – so if you’re an amicable person who loves to be on the ball, then this is definitely a profession for you.

 

There’s a plethora of things you can expect from working in logistics, but one we thought was really worth mentioning is that you can certainly expect to make some great friendships. From HGV Drivers, to Warehouse Operatives, when you work for a great logistics company, your colleagues will become your family. A perfect career choice for any gender and any age group, working in logistics is versatile enough to cater to everybody.

 

Is logistics a good career? For reasons above, we’d say irrefutably yes. To work in an environment that values your wellbeing, is rewarding, and is accommodating and flexible, sounds like the ideal situation for most. As an HGV driver, you’ll have a lot of responsibility and your work might be challenging sometimes, but the benefits far outweigh this and make logistics a wholly attractive career choice.

 

Would you consider a career in logistics and help to close the skills gap? Let us know on Twitter.

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Barnes Logistics fleet operates from more than seven sites across the country and supports a nationwide client base.

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