A year in the life of pallet networks: 2013

Having achieved record volume last year 2013 is set to be another record breaker, with the UK’s nine pallet networks on course to handle the most pallets through their systems that they have ever done since the launch of the concept two decades ago.

The latest data from the Association of Pallet Networks (APN), which has also confirmed it will continue to support the FairFuel UK campaign during 2014, revealed that for the year to date 11 million pallets have been handled by its member networks. This is 11% ahead of the same point in 2012.

Pall-Ex suggested this could be, in part, due to the networks picking up business due to shrinking own account fleets.

Irrespective, it doesn’t address this year’s (and last's) other great concern: rate pressure within the pallet networks and the squeeze that is resulting on prices in such a fiercely contested marketplace.

Inevitably the networks lost members as a consequence of the wider rate issue in road transport, rising costs and stagnant economy for much of this year.

Palletways and Fortec runner JDL Logistics was closed down in November, having been placed in administration in October.

South West Delivery Services, which collapsed owing creditors almost £1.3m and was a Palletways member, had its business acquired by Kay Transport.

However, although we saw the demise of Bill Chippington Haulage and Cobley Transport (Reading), Pall-Ex member Premier Logistics took advantage of the opportunity to expand its network, securing affected workers' jobs too.

Palletline, which enticed Castledene Transport to join it from Pallet-Track in the year, is pushing ahead with its direct trunking plan as way of addressing the rates issue for members.

2013 was also the year that Palletline co-founder Bob Russett’s business succumbed with a subsequent asset sale to Global Logistics Central.

While The Pallet Network is due to open a brand new hub next month to help its members efficiency and therefore their bottom lines.

However it wasn't all doom and gloom. Thanks to the APN and the efforts of the likes of Palletline, the sector was singled out for praise in 2013 for its work with the HSE to address the thorny issue of load restraint.

New teams

Palletline completed its operations team in 2013 as it positioned itself for a new wave of growth.

Palletways welcomed back an old friend, while Palletforce welcomed some first-time pallet network members, although one of them, Simon Nelson MD of Nelson Distribution, warned simply being in a network was on its own not enough to ensure survival.

Pallet-Track, which is celebrating its 10th anniversary in 2014, delivered its 10 millionth pallet in 2013 , and welcomed Mark Pulford, previously with Palletline, to its team with a remit to tackle special projects.

UK Pallets has a tough year of it, revealing extreme operating profit pressure and bidding farewell to its MD Terry Richards in March. Although it has since added new members in a bid to reverse its fortunes.

The United Pallet Network entered the European pallet race this year. As Palletforce entered into a partnership in Italy and Palletways expanded into the Czech Republic and Slovakia.

Fortec continued its technological journey with a smart new phone app, as well as boosting its commercial team.