Low steel rates sink six hauliers
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by Tim Maughan • Six small hauliers working out of British Steel's Shotton plant have gone to the wall after subcontracting rates were slashed in July.
Back in June, CM reported how the steel manufacturer gave its distribution contract to
Bridgend-based Carl ine Transport and West Midlands company Faber Prest Steel Distribution. They subcontracted work to small operators—but the low rates have destroyed some local firms, many of which have been transporting British Steel products for 25 years.
According to one haulier still working on the contract, six hauliers shifting steel from Shotton have collapsed since subcontracting was introduced.
Barry Lindfield, director of the now defunct Wirral haulier L Lindfield, explains how he paid the ultimate price: "We were offered rates that were years behind what they should be. In 1996 we were asked by British Steel to buy uniforms and get connected to British Steel computers." The company also paid £54,000 to convert nine trailers into sliderflexes, to carry British Steel coils. The firm closed in July.
Barry Mayers, managing director of Chester-based George Mayers (NW), told CM how his company transported British Steel for 40 years. But Mayers ceased work with British Steel after it stipulated buying special uniforms. "We do general haulage now," says Mayers. "It is a terrible shame to see these companies go down."
But Carline Transport managing director Richard Brown denies rates for subcontracted work have fallen, claiming they have increased_ "We have been able to discharge most of the steel ourselves," he says. "It was an open tender offered by British Steel. It's a fact of life—we have to operate commercially."