Courier Business Stuff

Same day couriers and other transport companies are increasingly turning to biodiesel to avoid the soaring cost of fuel. Some entrepreneurial transport companies have even started making their own biodiesel both for their own use and for resale to business associates.

In 2002, after much lobbying and with the approval of the EU, the UK introduced a lower rate of duty for biodiesel. At the time the biodiesel production was limited to a few enthusiastic companies who mainly produced their biodiesel from waste vegetable oil (WVO), used cooking oil from Fish & Chip shops etc, and before the introduction of this welcome ‘subsidy’, were able to produce fuel at a price that was slightly higher than traditional diesel fuel.

The introduction of the reduced rate of duty sparked a lot more interest in the production of biodiesel, increasing the demand (and the cost) for WVO and pushing biodiesel producers towards the use of virgin vegetable oil (VVO), which is anyway easier to process.

Move forward to 2008 and suddenly biofuel production seems a lot less ‘green’ than it was. Higher oil prices have increased the viability of fuel production from VVO and farmland throughout the world is being turned over to the production of oil and ethanol producing crops, forcing food production onto previously uncultivated land and leading to deforestation, worldwide food shortages and ultimately increasing the levels of greenhouse gas emissions.

The UK Government had already announced that biodiesel will be taxed at the same rate as normal diesel from 2010 but it had been hoped Read More…

Posted under Fuel Prices

Two months ago I wrote that I was starting to think that high fuel prices may be a good thing for the same day courier industry. I’ve revisited my original post in the light of the recent drop in fuel prices, recent statistics about car use and the exit from the business of quite a few less profitable owner-drivers and courier companies and I still stand by my opinions. In fact I’d go as far as to say that I’m a bit disappointed that fuel prices are dropping again so soon.

The effect on the same day courier industry has been largely mirrored, or possibly even magnified, in the transport industry in general.

The RHA and the hauliers are still, of course, bleating about haulage companies going out of business because of high fuel prices. The reality is that the only haulage companies who are suffering because of high fuel prices are those who didn’t have the foresight to tie their customers into contracts with provision Read More…

Posted under Fuel Prices

This report by the Sunday Mirror made me smile – both because of the apallingly inaccurate reporting and because it reminded me of a couple of conversations I’ve had over the last few months – one with an experienced same day courier who really should have known better.

According to the Mirror the recent high fuel prices have been causing more motorists to cut back on servicing their cars and because of that more motorists have been stranded by breakdowns.

Apparently an AA spokesman warned: “More and more motorists are running their cars until the warning light comes on.

“Apart from the risk of breaking down on a busy road, it also causes longterm damage to the car.”

I don’t think that I’ve read this particular AA survey, I certainly can’t find it on their website, but I’d guess from the next paragraph of the Mirror report Read More…

Posted under Fuel Prices

As I’ve said in the past, I’m firmly of the opinion that high fuel prices, road charging, congestion charges and anything else that encourages car users off the roads are a good thing for the transport industry in general and the same-day courier industry in particular.

This report from the AA seems to back up my view. It quotes Government figures estimating that car traffic during April, May and June 2008 was 2% down on the same period last year. The report goes on to say that 55% of AA members who answered a recent poll claimed to Read More…

Posted under Fuel Prices

These protests are getting very boring now and have achieved nothing, nor were they ever likely to.

The plans for the latest protest were reported by the Manchester Evening News here. It makes very interesting reading, even if it is wildly innacurate and slightly sensationalist.

According to the article “In June, 80 lorry drivers – plus around two dozen other motorists – took part in another Saturday morning go-slow convoy on the M6, starting from Lymm and heading south”. Actually I counted 55 vehicles including an ice-cream van, a cement mixer, a couple of limos and a few couriers‘ vans. Maybe the spare lorry drivers were in the limos. Oh, and they Read More…

Posted under Protests & Strikes