VIDEO: Maritime Transport MD John Williams

The impact of the recession on container volumes and haulage rates is being blamed for a 19% fall in turnover at the country's biggest container logistics firm, Maritime Transport.

This is the first time since the MBO created the business in 2001 that sales have fallen.

Felixstowe-based Maritime saw turnover drop to £69.3m in the year to 27 December 2009 from £85.5m the year before. Pre-tax profit also took a battering; falling to £0.5m from £3.9m in 2008.

MD John Williams says that the 700-truck company, which celebrates 10 years in private ownership next year, had to work hard to improve profitability in order to lessen the effect of the "perfect storm" that saw the shipping industry make billions of dollars of losses.

"In amongst that we faced extremely difficult negotiations with our customers where they savaged our rates. This happened quite quickly - we were given no time to adjust our cost base.

"We had to react appropriately and share the pain of our customers."

As a result, capital spending was cut and some small scale redundancies made, however Williams says that the company took a conscious decision not to alter the terms and conditions of its drivers, feeling that would have been "counter-productive".

He adds: "In my opinion we took a more positive approach to the situation than simply cutting wages and driver costs."

While unable to put a precise figure on productivity improvements, Williams points out that although rates fell by an average of 10%, profits fell by much less.

With the capture of DHL's container business in late 2009 and its subsequent integration, the firm has since returned to growth and 2010 turnover will be around the £110m mark. However, the directors' report warns that one-off restructuring costs may dent profitability.

In addition, it has invested £35m this year in new trucks, trailers and depots - acquiring freehold sites in Leeds and Northampton and Tilbury railport - and feels it is well-placed to take advantage of the recovery.

"[The DHL acquisition] will propel Maritime to a completely different league and will give us the substance to take on the next 10 years with a lot of confidence.

"There will be continued opportunities on containers because what we have done to increase our capability and capacity," he says.