P&O merger puts
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pressure on rates
• UK container hauliers could face rates cuts following the £2.6m merger of P&O and Dutch firm Nedlloyd to form the world's largest container business.
The new company, P&O Necilloyd, has already budgeted for savings of L'129m, part of which will be achieved by cutting inland road and rail transport costs over the next 12 months.
P&O moves most of its container traffic by rail, but also uses its own truck fleet (P&O Roadways) and regular subcontractors in the UK and on the Continent.
The merger has left hauliers near the major container terminals in Tilbury, Liverpool and Southampton uncertain of the future. Robby Maguire of Liverpool-based JI),1 Haulage says: "Rates are hard across the board in container work at the moment and we don't know what effects this will have on them."