Pallet-Track is to launch a European service after entering a partnership with Hellmann Worldwide Logistics UK.

The deal grants Pallet-Track access via Hellmann to Europe while granting the operator inroads into the UK’s pallet network market.

Pallet-Track MD Nigel Parkes has previously stated that the network would not launch a European service simply because a number of rivals had, waiting instead until he felt there was something in play that would benefit his 76 haulier members.

“I was never convinced the right model was available, until now,” he said. “This is a massive step for us, and the timing is perfect – we are expanding rapidly in the UK and enjoyed a record volume in March.”

Pallet-Track’s current European requirement – which sees just 2% of the approximately two million pallets it moves within its network head to Europe – has been met by freight forwarder Logfret International Logistics. This will come to a conclusion when the new arrangement starts no later than September 2015.

Mark Pulford, the Pallet-Track director who oversaw the deal, said: “It will increase our volumes by 10% overnight, give us multimodal access to key markets of Europe, and give Hellmann the UK reach it required.”

A Hellmann operations help desk will be set up at the Pallet-Track central hub in Wolverhampton.

Hellmann commercial director Matthew Marriott said: “After a positive start to the year, and the continued success of our Colnbrook distribution depot [in Slough], we’re confident the relationship with Pallet-Track will only enhance our service levels.”

The partnership will see Hellmann service three London postcodes: CR, KT and SM from this September. MT understands that the deal will see Hellmann bring about £1.8m of revenue into the Pallet-Track network, becoming one of its largest inputters at approximately 450 pallets a night.

The deal is a coup for Pallet-Track as Hellmann was last summer revealed as the European partner for UK Pallets. At the time, the operator was appointed to handle the KT, GU and TW postcodes.