Is the road freight transition struggling to get out of first gear?

The momentum behind transitioning the road haulage industry has stalled lately.

Confusion over the zero-emission mandate (ZEV), a lack of joined up thinking, failures to roll out charging facilities, and burdensome regulation on Heavy Goods Vehicles (HGVs) have hindered the uptake of ZEVs, drivers, and goods delivery.

There is no denying that road freight needs to become sustainable, with the sector alone contributing to 6% of the total emissions in Europe. Selling that message hasn’t been the problem; industry and investors alike are up for the challenge. Yet how this has been communicated and implemented has left the hazard lights flashing.

In November 2021, the government announced an end to the sale of new nonzero emission HGVs weighing 26 tonnes and under by 2035, with all new HGVs sold by 2040 needing to be zero emission. Two primary technologies currently deemed viable and available to the HGV sector are electric/battery-powered and hydrogen fuel cell technologies. Both technologies require significant charging facilities, which are both costly and crucially out of the control of the haulage companies. Unlike cars, which can be charged at home, HGVs often need to be charged at substations with the minimum requirement of at least 150kw of power to get the vehicles back on the road.

This is a major problem. With existing technology, most HGVs can go 200 miles, and with more advanced technology, 300. The problem is obvious: drivers must ensure they are close enough to appropriate charging facilities to complete return journeys. 

Then there is also the pressure this places on the electricity grid. There are varying figures, but essentially, the amount of power required to decarbonise the UK’s fleet is estimated to be equivalent to 450,000 homes – or in other words a city the size of Edinburgh. Generating this power and ensuring it is in the right place will be crucial and require collaboration from the government, energy providers, and the logistics sector.

Regulations also limit the use of vans. A standard driver’s licence allows vehicles up to 3.5 tonnes, but anything heavier requires a Driver CPC. Since electric vans are heavier due to their batteries, a UK and EU derogation permits drivers to operate zero-emission vans up to 4.25 tonnes without a CPC, eliminating the need to sacrifice payload to accommodate the batteries. However, MOT testing rules haven’t changed, meaning electric vans must be tested as HGVs. Additionally, they can’t operate beyond a 100km radius without a tachograph. With typical MOT lead times of 3–4 months, increased costs and restrictions on how the vans can be used, this has reduced the appetite of operators to adopt the vehicles despite the licencing derogation.

Finally, the new government has touted a Road Safety Bill. London is due to introduce a policy on later this month requiring HGVs over 12 tonnes to hold at least a three-star rating or fit the Progressive Safe System to operate in Greater London. The government is rumoured to be looking to adopt this policy on a national scale, which would place further (costly) regulations on the haulage sector.

Figures from the Department for Transport show over 90% of road hauliers in the UK are SMEs. The figures also show that the UK road freight sector's profit margin is below the 9% average. After years of increased fuel prices, operators will be questioning how additional costs and regulation will help unlock the government’s core growth mission.

Last year, the amount of freight on roads decreased. This wasn’t because of deliberate tactics to move to other modes (the problems with rail freight are well known, and air and sea freight are already at capacity) but instead, because systemic, long-term issues combined with a confusing policy environment are hampering innovation and investment and ultimately actively contributing to a decrease in the tonnage of goods delivered.

Like many sectors, road haulage is on its journey to decarbonisation. With the Budget and further potential road and charging legislation to come, a joint plan that the industry deems viable is crucial.

Otherwise, transforming road haulage won’t be able to get out of first gear.