Esso drives out its tanker fleet
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• Britain's tanker distribution hauliers are getting ready for an oil boom. Esso, which runs 400 vehicles and has 450 HGV tanker drivers, is planning to contract out most of its oil distribution system to thirdparty hauliers. Other major oil groups are also considering the reduction of in-house transport fleets.
Esso says it is undertaking a major study of its truck fleet, "for optimisation purposes". As margins become ever tighter in the petroleum and oil markets, the leading oil firms are dearly looking at the success of Texaco, whose distribution was put out to the National Freight Consortium's Tankfreight operation in October 1985. Tankfreight says that it is moving more product with fewer vehicles for Texaco.
Esso uses three different distribution techniques: ownaccount, authorised distributors and third-party hauliers. The company is quite clear that it wants to find an "appropriate way" of extending its third party distribution system. It has to be the "most effective method".
Discussions are under way between Esso, the Transport and General Workers Union and other staff. The company expects a decision by summer.
The union is surprised at the keeness of the major oil companies to go third-party, and though its members enjoy some of the best wage rates and working conditions in the haulage industry, it does not think cost-cutting effective if delivery clines and quality control are compromised.
Esso is adamant it will not go completely over to thirdparty distribution. "We don't want to go as far as Texaco," says the company, and "we don't want to substantially alter our existing management systems. We already use outside distribution companies anyway."
NFC Tankfreight says that it has "certainly noticed a growing trend to third party distribution with the oil firms". Tankfreight already works for Texaco and Gulf on national contracts and says: "All of the oil companies are currently considering contracting out at the moment."
According to Steve Clarke at Tankfreight; "The oil companies are beginning to see that their expertise lies in marketing petroleum and not in transportation."
When Tankfreight took over the Texaco fleet nearly three years ago, it inherited a fleet of 450 road tankers. The firm now says that it is moving more fuel with 200 tankers and productivity has increased considerably.
It also runs a fleet of 80 road tankers for Gulf.
Shell has denied rumours that it is considering contracting out, though it does admit that "with the ever increasing pressure on margins, we are always looking at ways of altering and improving our delivery system."
The company says that it is not carrying out any feasibility studies, and also denies that it has any plans to reduce its in-house fleet.