Light at the end of the tunnel for pallet networks?

Commercial Motor
September 20, 2010

Ahead of the final quarter of 2010 the pallet networks continue to report year-on-year volume growth, albeit from 2009's very low base.

Leading the way in terms of percentage increases is United Pallet Network (UPN) which earlier this month reported a volume rise for the first six months to 30 June of 27% compared with the same period in 2009, while July throughput was 29% higher than in July 2009 (MT 6 September).

Burton on Trent-based Palletforce says it too has experienced good growth this year. MD Michael Conroy says: "Volumes so far this year have been up some 20% on January-August last year. To date this year we have moved over two million pallets.

"The pallet network sector as a whole has benefited from smaller operators taking more trucks off the roads. At Palletforce our size and strength has won us some big accounts over the last few months."

Palletline has also noted rising pallet numbers between July and August; up 15% on the same two months last year.

Meanwhile, Pallet-Track has recorded double-digit growth in the first half of 2010, compared to the same period in 2009.

Pallet-Track MD Nigel Parkes insists: "Right now we are experiencing buoyant volumes following significant growth in pallet numbers during the first two quarters."

He says that during Q1 and Q2 the network invested in new IT systems which contributed to improved efficiency across the network.

Hertfordshire-based Aztek Logistics will be Pallet-Track's first new member in Q4, joining after a five-year stint at The Pallet Network (TPN).

Pall-Ex also says it is well into double digit growth on the first three quarters of 2009. "We've been very heartened by recovery this year, but we don't think pallet networks are completely out of the woods yet," says Adrian Russell, Pall-Ex MD.

The firm is going ahead with its pan-European expansion plan, following the success of Pall-Ex Italia last year.

Anand Assi, project director at the firm, says Pall-Ex Iberia should be live from a Madrid hub from April 2011, adding that the company is looking to set up Pall-Ex models in the Benelux countries and Romania this year, and finalise the deals in 2011.

"The motive is to offer members and their customers a completely cost-effective service for moving international freight," says Assi.

Lichfield-based Palletways has also celebrated a rise in throughput, with MD Craig Hibbert confirming August 2010 volumes were 14% higher than August 2009. He says the network is averaging 14,000 pallet movements a day, but anticipates steady growth toward the Christmas peak.

Hibbert also reveals that Dudley-based DY Pallets Logistics, previously of Fortec, has become its newest member, covering the Dudley and Worcester area from today, taking over from Tooles Transport.

In July Palletways unveiled its new marketing image; Slick the dragon, which was launched with a number of hot air balloons.

Hibbert insists: "We have calculated that the exposure we have had represents close on £1m of equivalent advertising spend. Features on TV and in national newspapers have really been getting our name out there and have won new work as a result."

However UK Pallets says it has struggled to maintain volumes, although commercial director Graeme Wilson concludes: "Volumes continue to remain challenging, but this has not impacted our profits too much."

Have you joined a pallet network recently? If you have then please contact joanna.bourke@rbi.co.uk

Fortec Pallet Distribution Network claims that by Q4 it will have "comfortably maintained 20% year-on-year growth".

It says the rise is partly attributed to Fortec's commercial ties to its parent company Geodis Calberson, which has led to a large increase in tender invitations for corporate accounts.

Neil Hodgson, Fortec MD, tells MT that the business is opening a new four acre Birmingham regional depot, which will be operational from 4 October.

"The objective is to have Fortec's regional hubs and Geodis sites in all areas of the country in the future as the combined pallets to parcels logistics force continues to expand," he says.

"We aim to work smarter, and licensee profitability is a high priority."

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