there seems to be a trend at the moment for companies working within the different pallet networks that operate in the u.k. are failing.
is this the sign that the work is just drying up and more are going to fail or are there just to many pallet networks fighting for the little work there is around.
I assume each network member gets paid by the pallet moved, and if less pallets are out there then it becomes unviable to run a 18 tonner around with only 2 or 3 pallets on each day and paying a driver 8 hrs pay for 3 hrs work,
so the question is if you work for one of these companies are you getting worried by the trend
i think you have hit the nail on the head, too many now fighting for too little work. was pallex the first now look how many there are and then chuck into mix that dhl do their own in house plus a couple off others…
just like containers, too many fighting in an ever decreasing circle.
jessicas dad:
i think you have hit the nail on the head, too many now fighting for too little work. was pallex the first now look how many there are and then chuck into mix that dhl do their own in house plus a couple off others…
just like containers, too many fighting in an ever decreasing circle.
no, can’t remember who was the first, but, i do know it was not Pall-ex
Hilary Devey (sp) used to work for another one before she started pall-ex
The problem is the same as all road haulage. The rates are too low. People want there goods moved from lands end to john o groats for the price of a first class stamp. It’s just a continuation of letting the customer dictate the rate. I know that if you don’t do it, someone else will, but the whole industry is going like shiply. Could you imagine going into tesco and when they say “that’s £114.65” you say I’ll give you £37.50. That’s what they do to the suppliers though, and the supplier in turn does it to the haulier. The whole industry needs to grow a back bone
OVLOV JAY:
The problem is the same as all road haulage. The rates are too low. People want there goods moved from lands end to john o groats for the price of a first class stamp. It’s just a continuation of letting the customer dictate the rate. I know that if you don’t do it, someone else will, but the whole industry is going like shiply. Could you imagine going into tesco and when they say “that’s £114.65” you say I’ll give you £37.50. That’s what they do to the suppliers though, and the supplier in turn does it to the haulier. The whole industry needs to grow a back bone
When your in Tesco, would you buy a Chicken that is £4 or a Chicken that is £10, the price difference is because they used 2 different hauliers, paying a good rate and the other undercut it
Profit margins might already be cut to something like £50 profit per round trip, at which point some forkie dropping a pallet of whisky whilst unloading you, is going to be a disaster. Sure, it’s still easy to “blame the agency” all the time, but that large-value pallet has just been wasted, and the insurance won’t be paying out if the FL driver doesn’t speak a word of English, and thereby voids the company liability insurance (if any!).
Blame who you like in other words - The companies fall like flies once the insurance doesn’t pay out anymore.
wildfire:
is this the sign that the work is just drying up and more are going to fail or are there just to many pallet networks fighting for the little work there is around.
I think it’s the latter. When the first couple of them started 20 years ago those who were members had a big advantage over those who weren’t and made good money out of them. Now there are enough different pallet networks that every tinpot haulier and his dog can be a member of one and they’re all undercutting each other to such a degree that there isn’t really any money in it any more. Add in to that the recession that has caused a drop in overall volumes and you’ve got the perfect recipe for failures.
OVLOV JAY:
The problem is the same as all road haulage. The rates are too low. People want there goods moved from lands end to john o groats for the price of a first class stamp. It’s just a continuation of letting the customer dictate the rate. I know that if you don’t do it, someone else will, but the whole industry is going like shiply. Could you imagine going into tesco and when they say “that’s £114.65” you say I’ll give you £37.50. That’s what they do to the suppliers though, and the supplier in turn does it to the haulier. The whole industry needs to grow a back bone
When your in Tesco, would you buy a Chicken that is £4 or a Chicken that is £10, the price difference is because they used 2 different hauliers, paying a good rate and the other undercut it
You’re being hoodwinked by the supermarkets argument that your shopping would double if the rates went up. The fact is, you can get over 13000 chickens on one trailer. The price of haulage could treble and it would cost less than ten pence extra per chicken. So anymore than £4.10 per chicken is just being greedy
We are a member of uk pallets! We do one postcode and a double decker comes in every morning full to the back doors of pallets all shapes and sizes! 2 18t and 1 7.5t! Busy all the time we have now taken on another postcode! Busy busy busy!i started on the pallets and its not a bad job once you get to know regular drops etc! House deliveries can be a pain but it all part of the Job! We have a general haulage side which I work on and some of our customers we have got we work for them because of the pallets so without the pallet network we wouldn’t have them customers (if that makes sense)! It’s only like tuffnels,interlink express,yodel, DPD the list goes on just that u deliver pallets not parcels! I think it’s a good thing, more people in jobs!
OVLOV JAY:
The problem is the same as all road haulage. The rates are too low. People want there goods moved from lands end to john o groats for the price of a first class stamp. It’s just a continuation of letting the customer dictate the rate. I know that if you don’t do it, someone else will, but the whole industry is going like shiply. Could you imagine going into tesco and when they say “that’s £114.65” you say I’ll give you £37.50. That’s what they do to the suppliers though, and the supplier in turn does it to the haulier. The whole industry needs to grow a back bone
When your in Tesco, would you buy a Chicken that is £4 or a Chicken that is £10, the price difference is because they used 2 different hauliers, paying a good rate and the other undercut it
You’re being hoodwinked by the supermarkets argument that your shopping would double if the rates went up. The fact is, you can get over 13000 chickens on one trailer. The price of haulage could treble and it would cost less than ten pence extra per chicken. So anymore than £4.10 per chicken is just being greedy
is it an oversight or have you intentionally only factored in a rate rise for the final journey on getting the chicken on to the shelf?
Are you in the habit of paying more than you need to for a service or a particular product?
Yes it was intentional, as the customer only pays the supplier for final delivery. Im not in a habit of paying anymore which is why I rubbished the ten pounds figure
Often pondered how many pallets must move in this method. I must pass 10 + DD outfits a night heading across the 14. (I bet there are close on 20) crazy really. I sent a lorry seat to north yorks from Norfolk. Standard size pallet, £50. A courier wanted £100.
MR VAIN:
Often pondered how many pallets must move in this method. I must pass 10 + DD outfits a night heading across the 14. (I bet there are close on 20) crazy really. I sent a lorry seat to north yorks from Norfolk. Standard size pallet, £50. A courier wanted £100.
UK Pallets shift over 5500 pallets a night. Don’t no about any others.
It’s always happened. I worked for Nightfreight from 1987-94, started as a driver and ended up as an ops manager. In some of the less populous areas (Powys, Highlands, Cornwall etc) it was not unusual for the franchisees to pack up at very short notice leaving the neighbouring depots to cover those areas as best they could. I don’t think much has changed; around the time I moved out of the overnight parcels business there was a rapid expansion of competing networks, wasn’t unusual for some of those rural depots to work for five or six systems, with inevitable ■■■■-ups if one of the trunks ran late. I daresay the pallet networks are little different.
Quite apart from damage, many of the franchised systems work on the principle that the delivery depot only gets paid if the consignment arrives on the due day, unless there’s reasonable excuse. It ain’t an easy way to make money.
OVLOV JAY:
Yes it was intentional, as the customer only pays the supplier for final delivery.
so are we only talking of a rate rise for the final delivery?
OVLOV JAY:
Im not in a habit of paying anymore which is why I rubbished the ten pounds figure
so why do you think tesco should operate any differently?
Your missing the point of my original post. The haulier should have the power to dictate the rate. The under cutting is a problem within the industry as a whole, not just pallets or chickens. Tesco was used as an example. The livestock haulier should be able to charge what he likes too. Transport is the only industry I know where the customer dictates the rates at least 8/10 times
OVLOV JAY:
Your missing the point of my original post. The haulier should have the power to dictate the rate. The under cutting is a problem within the industry as a whole, not just pallets or chickens. Tesco was used as an example. The livestock haulier should be able to charge what he likes too. Transport is the only industry I know where the customer dictates the rates at least 8/10 times
The haulier DOES have the power to charge what he likes. Unfortunately so do all the other hauliers.In fact, so does any other business. In practice they charge what the customer is willing to pay, because if they don’t the customer will go elsewhere. It’s called competition; the alternative is a state monopoly and I can’t see that happening any time soon.
OVLOV JAY:
Your missing the point of my original post. The haulier should have the power to dictate the rate. The under cutting is a problem within the industry as a whole, not just pallets or chickens. Tesco was used as an example. The livestock haulier should be able to charge what he likes too. Transport is the only industry I know where the customer dictates the rates at least 8/10 times
The haulier DOES have the power to charge what he likes. Unfortunately so do all the other hauliers.In fact, so does any other business. In practice they charge what the customer is willing to pay, because if they don’t the customer will go elsewhere. It’s called competition; the alternative is a state monopoly and I can’t see that happening any time soon.
exactly
a job gets done or a product sold when the 2 parties decide the price ok for them, there’s no guns to heads involved.
and i really don’t understand why so many truckers have a problem with undercutting, it’s day one of business school stuff and before dinner at that! if i was a betting man i’d say the majority of those whinging about undercutting in haulage, will be seeing if a company will undercut their insurance renewal / gas / leccy / petrol / mortgage / mobile / etc
OVLOV JAY:
Transport is the only industry I know where the customer dictates the rates at least 8/10 times
but how many industries do you know as intimately as transport?
I’ve never heard of a utilities or insurance company going skint by undercutting. They close ranks at a certain price. If hauliers did this work would go on old fashioned service. Not to the cheapest pole or rumu. With the easing on cabotage laws, in 5 years there will be no British operator with less than 20 trucks left. They won’t be able to compete. The only way to survive will be partnerships like linq partner link or harlequin etc
Don’t no about any others.