By Lee Dalton, Sales Director, Roder UK
With the ongoing conflict in the Middle East, Britain is bracing for huge spikes in inflation and rising fuel prices. Already, Brent crude, the global benchmark for oil prices, has jumped from $73 to around $108 a barrel (BBC).
As bulk fuel prices surged by over 16% in a single week (Road Haulage Association), global oil price shock is causing immediate challenges in running costs. Most hauliers in the UK operate with minimal margins, meaning this is an increase that most are unable to absorb. The result is costs being pushed through the supply chain to customers.
The Impact for Events
For the events sector, the effect of this could be disastrous. The wider reaching consequence of this oil price shock will be felt across event functions, impacting the cost of deliveries to site, generators required to run greenfield sites, as well as the cost of fuelling essential plant equipment.
When much of the industry is already battling higher-than-ever supply chain costs, another devastating price shock is going to pose huge problems for the coming events season. Without effective preparation, organisers and suppliers alike will suffer.
A Sustainable Solution
In times of turbulent fuel prices, the benefits of electric vehicles (EVs) and haulage solutions becomes undeniable. Logistics providers using EV’s will not have seen a spike in running costs due to their energy being largely predictable and often on a fixed rate. Historically, EVs have been portrayed as an expensive and unreliable option for haulage; in the current volatility, it is looking less costly and more secure long term.
At Roder, we trialled this last year during our work on the Chelsea Flower Show. In a bid to minimise the carbon footprint of the project, we collaborated with Voltloader, a local electric haulage provider, to deliver the event’s structures. Over the course of six journeys between our Cambridgeshire premises and the central London site, we saved almost a tonne of CO2 and costs were competitive when compared to traditional diesel haulage.
It is clear that we can no longer compare the costs of electric and traditional haulage in a like-for-like fashion. While diesel may be cheaper at first glance, the price stability of EVs mustn’t be overlooked. Plus, opting for electric haulage alternatives represents an investment in the longevity and sustainability of the industry as a whole, something we must remain vigilant about.
Futureproofing Against Price Volatility
As frustrating as it may be, no one has a crystal ball. We cannot accurately predict what will happen over the coming months, how long this conflict will last, or the extent of its implications for our industry.
While we can’t be sure how this will impact the summer, any forward thinking organisers and suppliers would be wise to look at alternative options to reduce their exposure to unpredictable fuel costs. Be that battery storage to hybridise their energy supply, solar panels to complement battery use, or electric plant to minimise the need for liquid fuels.
Similarly, the cost of travel for staff working on sites this summer is likely to be affected. Planning ahead to organise car share schemes, shuttle buses, or just managing a reduced amount of people movements to site will help mitigate the cost impact. Using a tool such as onboard.earth to track the travel of your staff and contractors is another great way to tangibly measure how much of a difference you have made.
Above all, based on the success we have had in our experience at Roder UK, I would encourage anyone with a need for haulage to investigate EV options. We plan to expand our use of EV haulage extensively over the coming months, both as a commitment to our sustainability aims and a protective measure against fluctuating fuel prices. By divesting our funds from traditional fuel to these renewable alternatives, we are helping to minimise the industry’s reliance on gas, and casting a vote for a more sustainable future.
Sources:
https://www.bbc.co.uk/news/articles/c20zgjzz0e4o
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