Proactive fleet management becoming ever more critical, says ATS Eutomaster

Continuing geo-political uncertainty in the Middle East will require more fully engaged proactive fleet management, says ATS Euromaster.

Shipping routes from Asia to Europe are being disrupted by the Houthi rebel attacks on merchant shipping in the Red Sea, which is forcing many shipping carriers to avoid the Suez Canal and take the vastly longer route via South Africa’s Cape of Good Hope.

Estimates put the additional fuel cost at $2m (£1.6m) and adds at least a further 10 days to deliveries for vehicle makers already struggling to ramp up supplies hit by restrictions due to Covid and the Russian campaign against Ukraine.

Both Volvo in Ghent, Belgium, and Tesla in Berlin, Germany, halted production temporarily as a result.

“We all saw what happened last time the Suez Canal was blocked, creating mayhem for shipping companies and leading to extended supply times for vehicles,” said Jason Chamberlain, sales director at ATS Euromaster.

“The current escalating crisis in the Red Sea looks like it could, at least temporarily, interrupt supply lines cutting short the availability of new vehicles just as deliveries are beginning to ease.

“It will certainly mean even longer fleet use cycles with an increase in the SMR (service, maintenance and repair) requirement and more proactive fleet management to ensure vehicles are kept on road.”

The warning from ATS Euromaster comes as new data from Epyx 1 Link highlights the growing age of cars and vans on fleet, with a significant increase in lead times between when a company car or van booking for SMR is created to when the vehicle goes to the workshop – from 11.87 days in 2021 to 12.92 in 2022 and up to 13.74 in 2023.

“This new data emphasises what we have been talking about,” said Chamberlain. “Proactive fleet management is becoming ever more critical to ensure vehicles off road are kept to an absolute minimum.

“Fleet managers must plan SMR activity in advance as well as MOT requirements as vehicles age. Workshops no longer have the capacity to take short-notice maintenance work.”

He added that the backdrop to fleet activity in 2024 would become even more uncertain as the country heads towards a General Election and a potential change in Government.

Economic activity could also be enhanced - or otherwise - depending on changes to interest rates by the Bank of England.

“There’s a tremendous amount of ‘background noise’ that is affecting - or will affect - business in 2024,” said Chamberlain. “What we’re advising fleet managers is to really focus on proactive fleet management to smooth out what may be significant bumps in the road as the year progresses.

“A strong handle on SMR requirements booked in advance will undoubtedly help overcome some of the uncertainty that is clouding the future.

“No one wants a vehicle off road if possible. Proactive fleet management can ensure that risk is minimised.”