28.8.2024 | Haulage

In a recent conversation with Porttalk, Tim Wray, the Vice Chair of the Road Haulage Association (RHA), shared valuable insights into his role within the organization, the latest developments at the Port of Felixstowe with its newly launched Container Booking System (CBS), and the pressing concerns and challenges facing the haulage industry today.

RHA Vice Chair Tim Wray’s Appointment

Tim, congratulations on your new role as Vice Chair at the RHA. With your extensive background in logistics, particularly as the Managing Director of Multimodal Logistics, what are your initial priorities as you settle into this new position? How do you see your experience contributing to the RHA’s mission of supporting and advocating for the road haulage industry?

I have been part of the RHA for over five years, initially joining as part of their South and Eastern regional council. I find the exposure to the broader industry very interesting, especially when you consider the problems we share.

In 2022, I was invited onto the national board, sitting alongside some of our industry icons and learning from their experience as I found my way. This year, I was nominated as vice chair, which I took as a huge compliment. Subsequent to a brief presentation, I accepted the role in May.

Through this journey, I have discovered that the container sector is widely forgotten or underappreciated (as most haulage operations are). I have made it my personal mission to highlight to everyone the very difficult trading position our industry is in and how we are often overcharged and subjected to unfair operational costs with little voice as a whole to defend ourselves. The more I can get the decision-makers in London to understand what we do, the more I feel we can gain the much-needed recognition we deserve.

Many of the functions cross over with my ‘Day job,’ so having the insight I get from the RHA helps me daily.

VBS-CBS Operation Update and Challenges

It’s now been over seven weeks since the VBS-CBS operation was launched. From your perspective, can you provide an update on the key challenges that have emerged because of the introduction of the CBS (Container Booking System)? Can you shed any light on the potential cost implications for hauliers, and how has the Port of Felixstowe’s communication (or lack thereof) with the industry impacted operations? What steps do you believe are necessary to address these issues moving forward?

Speaking with the Port and discussing the whole CBS/VBS debate with all my haulage colleagues and the wider RHA community, what has become very clear is the disjoint between the priorities of the port weighed up with the haulage needs.

Our industry is at the end of the food chain, and we can only react when everyone else above us has done their part.  I think the Port overlooked this point as we debated the CBS proposal recently. It was clear to all of us within seconds of seeing the proposal for the first time how unworkable their proposal was, and this was borne from the lack of engagement with us at its inception.

No operator can afford to spend thousands or hundreds of thousands of pounds to access the port to do our job, especially when you consider we do not choose the port; our customers have more say.

I understand the benefits of a CBS/VBS system, but it can only benefit everyone if we work together to get the right solution. As hauliers, we want to avoid our vehicles sitting around, and of course, we will do all we can to help with this work. But first, engage and work with us, as we want to find the solution that fits without breaking the bank.

We, the local haulage community, have a follow-up meeting on the 04th of September that I hope will be constructive.

Current Industry Concerns: The Early Haulage Peak

As we’re currently seeing an early haulage peak, there’s speculation that this surge might be driven by Christmas shipments arriving earlier than usual. Given this scenario, are you concerned about the sustainability of these increased volumes for the remainder of the year? How should the industry prepare if this early peak does not translate into sustained demand?

I fear the global disjoint in the Middle East and Russia forcing the early start of Christmas Peak, as companies do not want to have empty shelves at Christmas because of shipping delays. However, it is a much-welcome situation, as the first four months of the year were horrendous and have brought a much-needed injection to a sector that was on its knees.  Longevity will only be seen by high street demand, but with the economy moving cautiously in the right direction, I hope we have a more stable time as we move into Q4, although we will see troughs and some peaks.

Other Industry Challenges: Fuel Duty and Future Threats

What other challenges do you foresee impacting the road haulage industry? With the rate of fuel duty as one of the most significant single expenses for logistics businesses, how might a potential fuel duty increase in the autumn budget affect the sector? Are there any other possible threats or opportunities on the horizon that the industry should be particularly mindful of?

A primary concern is the potential increase in fuel duty in the autumn budget. As an industry, we hope the current fuel duty rate will remain the same.

For me, our biggest problems are dealing with the rising cost of assets. The cost of operating an HGV has increased by 10% over the past year, and the average profit margin of businesses in our sector sits at just 2%. This is coupled with the decline of people coming into the industry with the work ethic that our industry needs to thrive.

The driver shortage had eased in early 2024, but we are now seeing signs that as it got busier, it has again become a more considerable concern.  It also coincided with the end of the driver CPC term, when some of our ageing workforce stepped back, not wishing to take their CPC. I continue to work hard to encourage people to join our sector and work with my team to help them become our future, as, to me, the right people doing the right job are the most critical things we all need to get right.