PALLET-TRACK INTRODUCES RATES RISE TO COMBAT INDUSTRY PRESSURES

30th October 2014

Logistics BusinessPALLET-TRACK INTRODUCES RATES RISE TO COMBAT INDUSTRY PRESSURES

Leading logistics specialist Pallet-Track has announced a rise in member to member rates – the first in its 10 year history, following a national meeting of the 75-strong network shareholder members.

Founder and managing director, Nigel Parkes called the meeting which saw a 95% attendance from the network depots across the UK. Members discussed issues currently facing the freight transport industry before deciding on the best course of action.

In total, 80% of the members voted in favour of the rise, which will see an increase to delivery tariffs on all sized pallets.

Mr Parkes said: “Although the industry is continuing to thrive, one of the main problems we’re currently facing is that driver recruitment is at an all-time low while orders are increasing. In the past two months we’ve seen the same amount of growth as we have in the previous 14 months and it’s no longer sustainable to keep operating at the same prices we were back in 2004.

“Put simply, to fill the positions and continue to offer the same levels of high service that our customers have come to expect, we need to increase driver salaries, and this can only be done by enforcing a nominal rates increase across the network.”

Recent statistics released by the Road Haulage Association (RHA) state that the average age of a HGV driver is 53, with less than 5% of drivers aged 25 or under.

Figures from the national benefits office also suggest that there are currently only enough drivers searching for employment to fill one in five jobs being advertised.

Mr Parkes continued: “I believe we’re the first organisation to attempt to address the problem that we’re currently facing, but I’m confident that others will soon follow suit.

“It was a difficult decision, but a fair one. The industry cannot be driven on the downward pressure on price. The maths are the same for all the networks – although price increases are not palatable in the short term, without them there has to be an industry-wide impact upon quality of service.”

For more information about Pallet-Track, visit www.pallet-track.co.uk.