With it being National Lorry Week, here at Coversure Redditch, the home of great value and truck insurance quotes, we wanted to shine a spotlight on the essential industry that is road haulage.
Road haulage is the fifth largest employer in the UK with 2.54 million people working in the haulage and associated logistics industries. As it contributes £124bn to the UK’s economy it’s clear to see why haulage is an essential industry not only from the point of view of ensuring we all have access to the goods and products we want, but also as a vital provider of employment and revenue into the economy.
As one of Worcestershire’s leading providers of truck insurance quotes, here at Coversure Redditch, we like to keep informed about what’s happening in the industry so we can offer our logistics customers the protection they need. In this latest blog we look at what’s in the news for truck drivers and haulage companies and explain what we can offer in terms of insurance help.
Key Trends for Road Haulage
1. Driver Shortages – with labour shortages affecting ¾ of the UK’s businesses, the haulage industry is not alone in struggling to recruit and retain drivers. Driver shortages during the pandemic were largely blamed on older and EU drivers leaving, and on new driver tests being delayed. With the logistics industry seen as key to the levelling up agenda there’s been much in the news about schemes to encourage more workers into the industry, such as ‘Generation Logistics’. With the numbers of HGV delivery drivers now higher than pre-pandemic levels the situation looks like it’s improving. Some are still cautious, however, and suggest that during periods of high demand – such as around Black Friday and pre-Christmas – we may still see some difficulties.
2. Roadside facilities – another reason given for HGV driver shortages has been the poor facilities on offer to drivers while transporting goods across the country. And again, as with many industries, more focus is being given to HGV drivers’ welfare and wellbeing. In April 2022 the Government pledged £20million of funding to improve security, lighting and shower facilities at roadside services, recognising that improving conditions would help retain staff. Current campaigns such as that from the Road Haulage Association (RHA) suggest that, while facilities maybe improving, more still needs to be done.
3. Rising energy costs – the All-Party Parliamentary Group for Road Haulage & Logistics has recently stated that the rise in diesel prices is “the most urgent issue facing road haulage”, with many calling on the Government to implement an essential road user fuel duty rebate. The September TEG Road Transport Price Index showed haulage costs were up 3.5 points on August with the average courier price-per-mile at an all time high. However, while haulage costs are 15.2 points down on 2021 and with Government spending cuts being predicted, we wait to see if any help with transport fuel costs will be forthcoming.
4. Decarbonisation – since COP26 and the announcements that all new HGVs should be carbon neutral by 2040, decarbonisation of the UK’s road haulage industry has been a hot topic. Electric vehicles (EV) has been the way to go for cars and vans, and we have seen some UK retailers deploy electric HGVs, others though argue that a different alternative power source is required. Hydrogen is one such power source. Earlier this year the UK Government announced a £200 million funding package to support a zero-emission road freight demonstrator programme, with initial competitions for electric battery and hydrogen fuel cells launched. In the meantime the RHA support the use of low carbon rather than zero carbon options. As we’ve seen with electric fleet adoption, the key, regardless of the alternative fuel type, will be having the infrastructure in place across the UK to refuel.
So there’s lots happening in the road transport world with many challenges and changes for our haulage and logistics customers to face. One facet of their business that’s a certainty is the need for high quality truck insurance.
What Is Truck Insurance?
Truck insurance, also sometimes called HGV insurance, is a policy that protects lorry owners, haulage firms, and other heavy goods vehicle users too. From heavy goods vehicles between 3-100 GTV including refrigerated, electric and hybrid trucks to flatbeds, low loaders, breakdown trucks and cement mixers, there’s a long list of vehicles that can be covered by a truck insurance policy through Coversure Redditch.
What’s Included In A Truck Insurance Policy?
As with car insurance there are 3 main types of cover: third-party, third-party, fire and theft and fully Comprehensive. But in addition other specific options can be included to protect a truck business:
• Public Liability – providing cover if a member of the public is injured or property is damaged in an accident. Particularly useful for Haulage firms with many vehicles on the road
• Goods in Transit – providing cover for goods whilst being moved or stored
• Fleet Insurance – if you are operating two or more vehicles then fleet insurance maybe able to save you money and administration time
As well as the above we can also look to include, as necessary, European cover, loss of licence, legal protection and breakdown recovery.
Key Trends for Road Haulage in 2023
Unfortunately we don’t have powers to see into the future but we wouldn’t be surprised if many of this year’s key trends continue into 2023. Hopefully we’ll see improvements in roadside facilities for lorry drivers and this will encourage more drivers into the industry.
We’ll be keeping a keen eye on zero carbon advancements for HGVs especially, as the decarbonisation of the road haulage industry is a key component to meeting the country’s net-zero targets. With regards to fuel prices, well, only time will tell. What we can say for certain is that Coversure Redditch is here to offer friendly advice and can help our haulage and logistics customers source HGV insurance, at great prices.
Need some HGV or Truck Insurance help?
With our wide panel of high-quality insurers and competitive rates, we can help you find the right vehicle cover for an affordable premium. So call us on (01527) 757 585 or email Coversure Redditch to get a competitive truck insurance quote.
Road Haulage Facts and Stats (rha.uk.net)
THREE–QUARTERS OF UK COMPANIES HIT BY LABOUR SHORTAGES IN LAST 12 MONTHS – CBI/Pertemps | CBI
Groundbreaking campaign reveals recruitment opportunity for logistics sector; Generation Logistics launches today
Is the HGV Driver Shortage Crisis Over? (driverrequire.co.uk)
£20 million to improve roadside facilities for HGV drivers – GOV.UK (www.gov.uk)
Fuel price rises: “the number one issue facing trucks and coaches” (rha.uk.net)
Road Transport Price Index – Transport Exchange Group
£200 million boost to rollout of hundreds more zero-emission HGVs – GOV.UK (www.gov.uk)
Decarbonisation: a new RHA strategy
Truck Insurance | Cheap Truck Insurance Quotes | Coversure