Fleet News

Business mileage rises 2.51bn in June as Covid-19 lockdown eases

motorway traffic

Businesses travelled an estimated 2.51 billion miles more in June than May as the Covid-19 pandemic lockdown measures eased, figures from Allstar Business Solutions show.

The findings have been released as the fuel card provider launched its Business Barometer, which will track business mileage as an economic indicator of sector recovery.

The report supports figures released earlier this week from Geotab and Webfleet Solutions which reported the UK’s transport sector activity has recovered to 84% of its pre-coronavirus baseline. 

A week earlier, Department for Transport figures showed the number of vehicles using UK roads has almost returned to normal

Meanwhile, data from Verizon Connect has shown that hours spent on the road by UK commercial drivers dropped by 55% between mid-February due to lockdown measures. Its data from April 7 to May 5 saw hours increased 22%.

Paul Holland, MD of UK Fuel at Fleetcor, Allstar’s parent company, said: “It comes as no surprise that a significant impact has been felt across the board but every litre of fuel used since lockdown tells its own story of a business adapting, and often diversifying, to meet changing needs.

“It’s promising to see further signs of recovery as vehicle fleets that were mothballed in full lockdown have begun to re-emerge, helped by fuel prices broadly remaining at a four-year low.

“Looking ahead, the pace at which businesses return to a more normalised performance and whether we see a change in patterns of business travel and an ongoing increase in home deliveries will be fascinating.”

The analysis showed some industries are currently recovering at a faster rate than others, with month-in-month increases ranging from 11.3% to 101.6%

Arts, entertainment and recreation rose quickest (101.6%) followed by education (47.5%). Fuel usage in the wholesale and retail sector rose by 46%, manufacturing 40.5% and construction sector 34.3%.

Conversely, agriculture, forestry and fishing rose 11.3%, utilities 20.2% and transportation 22.1%.

Tracking the recovery month on month: June versus May 2020

Sector

Fuel consumption (% increase)

Arts, Entertainment and Recreation

101.6

Education

47.8

Wholesale and Retail

46.0

Hospitality and Catering

43.2

Manufacturing

40.5

Real Estate

37.8

Other

34.7

Construction

34.3

Financial Services

25.9

Transportation and Storage

22.1

Utilities

20.2

Health and Social Care

17.0

Agriculture, Forestry and Fishing

11.3

 

Weekly fuel consumption: peak lockdown (w/c April 6) versus w/c June 29

Sector

Fuel consumption (% increase)

Arts, entertainment and recreation

275%

Education

186%

Hospitality and catering

155%

Manufacturing

137%

Wholesale and retail

135%

Construction

127%

Other

107%

Real estate

91%

Financial services

90%

Health and social care

56%

Utilities

50%

Transportation and storage

50%

Agriculture, forestry and fishing

34%

2.51bn mile projection based on extra miles travelled by Allstar’s customers travelling in June 2020 versus May 2020This has been extrapolated to the full UK business population based on Allstar’s estimated commercial fuel market share.

 

A Fleet News webinar: WATCH NOW

The impact of the COVID-19 pandemic on fleet operations and business travel

Sponsored by Sixt.

A discussion hosted by Fleet News on the UK business response to the fleet challenges presented by Covid-19. 

A panel of experts will provide an insight into the trends and changes that they are seeing, before leading a debate and discussion among participants, including delegates, on future working practices, changes to travel policies, opportunities offered by mobility solutions and implications for fleet sizes, replacement cycles, funding methods and vehicle type.

Watch the webinar

Chaired by editor in chief Stephen Briers, in this 45-minute webinar, he will be in conversation with:

  • Dale Eynon is director of Defra Group Fleet Services and will give a fleet operator view of how covid-19 is affecting fleet operations
  • Kit Allwinter is senior consultant at AECOM and is a specialist in sustainable and active travel including shared mobility. He will provide a view on how Covid-19 is changing the way people travel and business working practices, etc. and the implications for travel and fleet activity, especially in urban areas
  • Paul Hollick, chair of the Association of Fleet Professionals. He’ll be representing the views of UK fleets, providing insight into how their operations are likely to evolve and change due to new working practices sparked by the coronavirus pandemic.
  • Simon Turner, campaign manager at Driving for Better Business, which has created a Covid-19 toolkit, driver app and management portal to help fleets back to business.

  • Stuart Donnelly, Sixt (sponsor)

Topics:

• Changes to working practices (agile/remote/office working)

• Changes to travel policies (travel to work, travel to client, travel to supplier etc)

• Implications for fleet size (new car/van sales demand)

• Impact on replacement cycles (new car sales demand) and annual mileage

• Impact on demand by vehicle type (EV, Hybrid, Petrol, Diesel)

• Changes in funding preference (fewer traditional 3-4-year contract hire lease agreements and more flexi-hire contracts?)

• Active travel policies (walk, cycle, other)

• Public transport policies (to work, at work)

• Role for other mobility preferences (car share, car clubs, mobility budgets)

REGISTER NOW

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Comment as guest


Login  /  Register

Comments

No comments have been made yet.