Hauliers stung on return loads
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• Hauliers struggling to compete for business in Europe claim they are being squeezed out by unscrupulous freight forwarders using computer services like Teleroute and Minitel to rig the market.
The truckers reckon that some forwarders bid for numerous loads to corner the market, then offer those return loads to hauliers at bargain basement rates after taking a hefty cut for themselves — a load may have passed through several middlemen before it reaches the haulier.
"It's rife in the trade," says Paul Grist, managing director of Brown's Transport in Kent. "These people are setting up in a front room with a few phones and a telex machine. They specialise in the French market by tapping into Minitel (the French home computer system) and Croner's Teleroute." People using Teleroute do not have to give any information about their company, so it could be a happy hunting ground for unscrupulous forwarders. Croner says it is "very concerned" about this abuse of the system.
Grist says that the problem has been worsening over recent years and that a lack of legislation and licensing is at the root of it.
"They are going out to the market posing as bona fide hauliers and freeloading by making a few phone calls," says one Swindon operator. He has been offered international trips at £400 when the proper rate is nearer 1,000: "Obviously we would like to Cut out these middlemen," says the operators, "but we are often forced to take cut-price loads just to keep our trucks on the road. They are capitalising on the French haulier stuck in the UK and looking for a backload."
Several hauliers have told Commercial Motor that some of these forwarders even refuse to pay the reduced rates, and taking them to court is so costly and time-consuming that many small operators have to let them get away with it.
Dover seems to be the centre of activity for these agents. Another Swindon haulier alleges they take up to £100 every time a load passes through their hands, often to yet another middleman.
Hauliers agree there is real need for reputable agents, such as LEP, who themselves admit there are a lot of unprofession al and unreliable freight agents around. London-based forwarder Newgate says hauliers must take responsibility for choosing the right partner: "Hauliers should not accept cut-rate loads, but it's a case of supply and demand. It's the haulier's choice if he wants to use us — we are not holding a gun at their heads."
Director-general of the Institute of Freight Forwarders, Jim White, urges hauliers only to use the 650 forwarders registered with the Institute. "There's no legislation controlling access to the profession, so it is up to the exporter or importer to take precautions."
White says the Institute will investigate a complaint against any forwarder on its books and believes the cowboys will be squeezed out as customers begin to demand better service.
In the meantime hauliers will continue to pay the price for cowboy agents. Grist says: "We can't go on carrying these people forever. If things get much worse a lot of people will go to the wall."