As one of Worcestershire’s leading commercial vehicle insurance brokers, we like to keep abreast of trends in the commercial vehicle sector. In 2022 we’ve seen continuing supply chain disruption and driver shortages, rising fuel prices, and lots of talk about sustainability and reducing carbon emissions. These issues have impacted most, if not all, commercial vehicle drivers, from taxis to trucks, couriers, and fleets alike.
In this latest blog from Coversure Redditch – the home of great quality commercial vehcile insurance quotes – we look at the key trends and issues facing commercial vehicle drivers and look forward to what 2023 holds.
Taxi Trends For 2023
We know from our many taxi insurance customers that the last few years have been challenging for taxi drivers, but happily, recent research suggests the sector has turned a corner. A sector worth £8bn, employing 341,249 people across 270,049 businesses, it’s a key sector for the UK economy. So, what does 2023 hold for taxi firms?
1. Changing demand – current economic uncertainty could initially have a negative effect on demand in 2023 as individuals and businesses review their spending habits. What will be key for taxi businesses, therefore, is to maintain their profitability by reducing costs; this may come in the way of fuel savings if taxi fleets are switched from petrol and diesel
2. Renewing taxi fleets – alongside fuel savings, the rise of ULEZs across the UK means that if you are still driving a higher carbon-emitting vehicle, you’ll be paying higher road charges too. With electric vehicle infrastructure improving, with technology to charge while in the rank being piloted this year, we’ll likely see more fleets switch to electric in 2023
3. Technological advancements – from flying taxis to self-driving robo-taxis, there’s been much in the news about these technological advancements in 2022. While significant progress has been made; more regulation consideration is still required. No doubt these alternatives will continue to make great headline grabbers in 2023.
Truck trends for 2023
With 89% of goods transported by land in the UK and contributing £124bn to the UK’s economy, it’s an important industry. So, what’s 2023 looking like for truck drivers?
1. Roadside facilities – 2022 finally saw driver numbers rising above pre-pandemic levels. While, during peak periods, driver availability may still present headaches for haulage firms, the trend is a move to providing better facilities for those that are now working in the industry. Staff well-being and retention are key trends for many sectors, but with the Government announcing a £100m package, it’s clear to see it’s a priority for HGV drivers
2. Optimisation through technology – improving performance of the end-to-end supply chain through better shipment planning, more accurate ETA predictions to optimizing routes, not only lead to less frustration but in an environment where costs are rising, technological solutions could help with cost savings too
3. Decarbonisation – with all new HGVs to be carbon neutral by 2040, finding the right alternative to diesel for Heavy Goods vehicles is proving more challenging than with cars and vans. While we are seeing electric trucks working well for final mile heavy fleets, will hydrogen or lower emitting options win over for the long haul in 2023?
Courier trends for 2023
Recent years have been a boom time for couriers and delivery companies – we’ve seen a surge of drivers looking for courier insurance quotes. With 60 million e-commerce users in the UK, it’s normal for consumers to buy online and have those purchases delivered to their door. So, will the good times continue for Couriers in 2023?
1. Sustainable deliveries – from electric vehicles and robots to more sustainable packaging and energy-efficient warehouses, while the road to net-zero deliveries is not a simple one; it’s one consumers, governments and our environment demands
2. Rapid deliveries slowing down – £10.5bn was invested globally post-2020 in rapid deliveries. However, with some operators now downsizing as demand falls away, rapid deliveries appear to be a victim of increased mobility and rising prices
3. Improving delivery experiences – It’s been a challenging end of the year for some delivery companies, with industrial action for some and a knock-on surge in demand for others. With one survey revealing that 76% of shoppers cite poor delivery experiences as affecting purchasing decisions, retailers and their chosen logistic partners will be keen to keep on improving their service offerings in 2023
Fleet trends for 2023
The latest BVRLA (British Vehicle Rental and Leasing Association) Leasing Output Report (Oct 2022) details that corporate fleets are growing. With car fleets up 1.4% and van fleets up 7.4% on last year. So, what’s in store for motor fleets in 2023?
1. Electrification – 2022 has seen 224,919 battery electric vehicles and just over 15,000 battery electric vans registered to date (Nov 2022). With fuel costs a key factor, 2023 may see more fleet managers looking to progress with EV fleets
2. Vehicle availability and costs – one concern in achieving electrification, however, is vehicle availability and purchasing costs. The BVRLA says that over half of its members report that longer lead times are now the norm, and 70% are concerned with purchase costs and borrowing rates
Looking across the various sectors of commercial vehicles, it’s clear to see some key themes – decarbonisation, cost control, and technological advancements. One other theme that’s a priority for all CV drivers is finding good quality commercial vehicle insurance at a competitive premium. This is where a specialist independent insurance broker – such as Coversure Redditch – can make a real difference.
Does it pay to use a broker for commercial vehicle insurance?
Commercial motor insurance and fleet insurance policies can be complex, particularly for driving professionals such as taxi drivers, truck owners and couriers. At Coversure Redditch we have access to a wide range of policies, we have an in-depth knowledge of the needs of drivers and a real commitment to giving customers independent advice and great value cover. To qualify for a fleet insurance quote, you need just two or more vehicles – vans, cars, motorbikes, or a mixture of all three. Fleet insurance could reduce the cost of cover per vehicle, save time on administration and can give flexibility in terms of drivers as well as the vehicles.
Get a commercial vehicle insurance quote
If you would like a commercial vehicle insurance quote or a fleet insurance quote, please get in touch with Coversure Redditch. You can call us on Redditch (01527) 757 585, email Coversure Redditch or get a CV insurance quote here.
Sources:
Taxi Operation in the UK – Industry Data, Trends, Stats | IBISWorld
UK’s first wireless electric taxi charging rank opens at Nottingham station – BBC News
Where Now For The Taxi Industry? | Coversure
Road Haulage Facts and Stats (rha.uk.net)
Driver shortage ‘no longer a crisis’ but seasonal problems will continue, new data reveals | Motor Transport
Up to £100 million boost to improve HGV roadside facilities – GOV.UK (www.gov.uk)
Top 5 Transportation Technology Trends For 2023 (forbes.com)
Truck Trends 2022-2023 | Coversure
E-commerce in the UK – Statistics & Facts | Statista
Can Couriers Be Carbon Neutral? | Coversure
Rapid delivery service Getir to buy UK rival Weezy | Retail industry | The Guardian
Bubble bursts for rapid food delivery as UK firms shed workers | Couriers/delivery industry | The Guardian
Shipping trends 2023: Key trends for retailers to watch this year (shopify.com)
BVRLA BVRLA Leasing Outlook Report – October 2022
UK new car registration data, UK car market – SMMT
New van deliveries down in November but market looks to rebuild – SMMT
Vehicle pricing a major concern for leasing sector | Leasing (fleetnews.co.uk)
Commercial Vehicle Insurance: Why It Pays To Use A Broker | Coversure
