Graham Leitch_MD_Palletline2017

Palletline plans to replicate its national consolidation model with other retailers after seeing its Amazon freight volumes continue to build.

The network is in talks with a number of major retailers in a move that would see Palletline extend the model, which offers a central booking service and consolidated deliveries of freight to regional DCs. The service, which operates from the network’s main Birmingham hub, will be expanded as retail partners are signed up.

In May, the pallet network officially opened a Coventry hub, which houses network member Reason Transport and also acts as a consolidation point for Amazon freight, as well as providing additional capacity for the network.

Speaking to MT, Palletline MD Graham Leitch (above) said: “We are looking at expanding our consolidation model that we offer Amazon to other retailers. We are the only pallet network that is on Amazon’s preferred carrier programme, which means we are an approved consolidator into its fulfilment centres and we are looking to extend that model to other retailers.”

Leitch said there is an appetite in the retail market for a national consolidation service, adding that Palletline was “already in discussions with a number of household names”.

Palletline is in a prime position to offer the service to other retailers “because we already have a central booking team that can offer a national consolidation service”, he added.

The network launched the service to Amazon when it became a preferred carrier to the online retailer in 2013.

Palletline’s partnership with Amazon, which was recently extended for two years, has helped to drive record growth in freight volumes at the network. Leitch said freight volumes rose 10% in the year to June 2018, and attributed 2% of that growth to a sharp increase in Amazon volume.

The Amazon partnership is also driving growth in other areas of the network, said Leitch. “Our members also pick up customers that supply to Amazon – the manufacturers or importers of products that go to Amazon also have other distribution streams and other customers and we are finding that is another stream of growth for us on the back of the Amazon offer.”