Rates, as with all sections of haulage, have been moving the wrong way in the pallet sector for a number of years. In short: you can't charge for a pallet what you used to be able to.
So despite the pallet sector continuing to grow in totality, the fierce competition between the UK's well-established pallet networks is keeping rate rises at bay. It's prompted Pallet-Track to increase its members' internal rates in a bid to stop the rot, and The Hub understands several other networks are considering nominal increases of their own.
Palletways, as the largest network in the UK in terms of pallet volume, finds itself in an interesting position on this front. Indeed, UK MD Luis Zubialde underlined this when he said at the launch of the Vision 20:20 strategy this week, that done correctly the new plan would mean the network "will be telling the market the price" for years to come.
Whatever your view on that, Craig Hibbert, group member development director at Palletways, explained the network's philosophy in regards rate pressure, which is essentially work smarter, informing exactly what that instruction is likely to be.
"It's efficiences that make members profitable," he said, when asked if there was an opportunity now, with the improved market and the additional sales-opportunities the network's new software and strategy should bring, to up rates. "So it's fundamental to get the cost base right," he said, and added that Palletways was attempting with new software; a review of members' delivery and collection areas; and the alignment of the membership with the right commercial activities and customers to do exactly that.
On that last point, Zubialde repeatedly spoke of the importance of customer service and the service offer in general at the launch event. So while the core of the new strategy and software is efficiences - make it easier and greater profits will come - this and talk of looking for "the right customers" suggests that future pallet network battles, and this applies across the divide - won't simply be fought on price alone.