By Nicky Simpson, commercial director at Enterprise Flex-E-Rent
London is leading the way in road traffic safety and environmental standards, and this is particularly relevant when it comes to HGVs.
SMEs (Small and medium-sized enterprises) in particular may be uncertain of what level of compliance they need and what challenges their business will face, given the volume of regulation currently facing fleets operating in the capital and the fact that more are coming into effect later this year.
Grasping the scale of knowledge required is essential if SMEs are to make better and more informed decisions, especially those now planning Christmas logistics or vehicle acquisition and expansion to support business growth.
DVS, GSR, FORS and beyond
The Direct Vision Standard (DVS) is one of the key areas affecting HGV fleets and a tighter, more exacting safety equipment regime comes into force on 28 October 2024 with the Phase II standard, requiring:
- A minimum three-star rating to obtain a permit to operate HGVs within Greater London, up from the current one-star requirement. Lower rated vehicles – including most HGVs currently on the road and even some of the very latest models on sale – will need to retrofit upgraded Progressive Safe System (PSS) sensors and cameras and send proof to Transport for London.
- Upgrading blind spot sensors from side scan to a predictive radar system and adding a ‘Moving OFF’ sensor system at the front of the vehicle.
- Changing DVS visual warning stickers from A4 to A3 size.
Alongside, the General Safety Regulations (GSR) is an EU-wide regulatory change that will apply to all new trucks sold from July 2024.
Although the UK is not bound by these regulations, most HGVs manufactured in Europe will be built to comply with these new rules.
While there are some overlaps with DVS, GSR has augmented requirements such as a drowsiness/attention detection safety system, which evaluates the driver’s alertness, and a standardised interface for alcoholic interlocks (breathalysers) in vehicles.
There is in addition the Fleet Operator Recognition Scheme (FORS), which is a full driver and vehicle management system, largely applying to vehicles used on construction sites and other high-risk areas.
Compliance with one or more of these could add significant cost to businesses operating HGVs in London. SMEs will need to identify how many of their trucks need to be compliant and with which regulations in order to avoid unnecessary costs, as acquiring new vehicles and upgrading existing fleets is a significant cost.
SMEs that are subcontractors to larger organisations will also have to comply with the requirements of those customers, which may result in investing in additional safety equipment.
The higher operational costs of London HGV deployment
Compliance with new and upcoming regulation is only part of the picture. SMEs operating trucks in London also face higher servicing, maintenance and repair costs and especially increased off-road times as dealerships face a growing backlog of repairs.
Those acquiring and upgrading specialist vehicles, such as cranes, may continue to see longer and increasing lead times.
Emissions-related decarbonisation is another area that is likely to become stricter. The Euro 7 standard for cars, vans and HGVs has just been finalised and will come into force in 2025 for new cars and vans and 2027 for new HGVs. It will impact all vehicles driven in the UK.
Planning and forethought
Fleet and logistics managers operating in and around the capital therefore need a strategy to continually futureproof their HGV fleets.
Solutions might be for the short- or long-term, depending on what projects and contracts they have. Many will have older vehicles that may not require an upgrade if they do not operate in the capital, or that are beyond retrofitting.
Finding the right flexible alternative solution to ensure compliance, while driving efficiencies and enabling future upgrades, is essential.
While today this is a London-centric issue, there are several major industrial areas in the zone covered by the new DVS standard, in particular, and it will affect many truck operators of all shapes and sizes.
With less in-house expertise than larger fleets, SMEs will need guidance on how best to operate in a region with so many regulations in place. How do you design a plan to access compliant vehicles for short-term projects and for year-round contracts?
With stringent standards already in place in Greater London, and more being introduced, flexibility is fundamental to planning effective vehicle acquisition. That way, businesses can be innovative and meet challenges face on, while continuing to manage the cost of acquiring and maintaining major assets.
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