What London’s new Ultra-low Emissions Zone means for businesses in the city
So, what is the Ultra-low Emissions Zone (ULEZ)?
If you live in London, you’ll probably have heard of the Ultra-low Emissions Zone (ULEZ) by now, set to come into effect on 8 April 2019. The ULEZ is a daily charge that will run 24 hours a day, 365 days a year, operating within the Congestion Charge Zone. Replacing the T-charge, the purpose of this new zone is to try and cut down on air pollution in Central London. It aims to do this by setting specific Euro emission standards for all vehicles entering the zone to meet. These standards set limits for polluting nitrogen oxides and particulate matter that car engines can emit.
Vehicles entering the zone must meet the following standards to be exempt from the ULEZ charges:
- Euro 3 for Motorbikes
- Euro 4 for petrol cars, minibuses, vans
- Euro 6 for diesel cars, minibuses, vans*
Vehicles that do not meet the minimum emissions requirements will be charged £12.50 per day to enter the zone, this includes cars, motorcycles and vans. For larger vehicles such as 3.5 tonne lorries, they can expect to pay £100.00 per day when entering the zone.
Who will be affected by the Ultra-low Emission Zone?
The new legislation seems set to affect thousands of car owners with petrol engines older than 14 years and diesel engines older than 4 years. Though there has been much talk surrounding the ULEZ, there has been little talk on what its impact will be on local businesses.
Businesses that operate or have clients within the ULEZ may have to take on extra charges if they do not meet the standards of the new zone. For many companies delivering into London, the ULEZ means that many of the vehicles in their fleet will need to be upgraded or they will have to pay the charge to enter the zone, once it comes into effect. Taxi companies such as Uber are already starting to introduce their ‘Clean Air Plan’, adding an extra charge of 15p per mile to every trip taken within ULEZ to try and cover the extra costs of operating in London.
For businesses that rely on courier companies to deliver most of their goods into Central London, it means that extra charges could be involved as they will look to cover the cost of this new charge. So, if you are part of or run a company that uses motor vehicles that do not meet the ULEZ requirements to make deliveries to or from your customers & clients, you may soon find the cost of operating in this way increase.
What you can do for your business
Many businesses who have a need for deliveries into the ULEZ zone are most likely already rethinking their green strategies. Revisiting your entire supply chain, with a focus on the location of warehousing, types of vehicles used within the ULEZ and budget allocation is paramount. For businesses that require regular deliveries into the ULEZ zone, consolidation and outsourcing of Logistics could be the best solution and for others, it could be a change of fleet.
How Mango Logistics Group can help
Operating since 2004 and based near Tower Bridge, just outside the ULEZ zone, Mango Logistics Group offers a total logistics solution tailored to your business. Mango offers managed warehousing, fulfilment, same day, next day and international courier services to businesses with operations in London. With a fleet that consists of pushbikes, electric bikes and vans, Mango can provide cost effective, green and sustainable solutions and advice to meet your business’s needs.
Mango also offers a last mile delivery service. The last mile is the final step in the delivery process, delivering consignments from a hub to its final destination. If you’re company receives multiple deliveries throughout the day you may find that having your parcels held in one central hub, outside of the ULEZ, before it reaches its final destination is a more cost effective and a greener way of operating.
How the Ultra-low Emission Zone will make London greener
In October 2012, the ULEZ will expand and include the North and South Circular roads. Although the ULEZ may affect the way some businesses operate and increase expenses, in the long run, this is an extreme change that London needs. Mango wants to play a big part in helping London become greener and hope to encourage other companies to find greener ways to operate in London.
To find out more about the services that Mango offers, click here.
Alternatively, if you’re more concerned about international couriers rather than within London, make sure to read our guide on shipping your products internationally.
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