Freight futures planned
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by Karen Miles • The owner of the UK's largest trailer rental company is preparing a system which it says will allow freight users to gamble on forthcoming rates in worldwide transport.
The operation, which will be available on the internet from later next year, will allow freight users and hauliers to book space with General Electric Capital Services's European logistics company, Penske Logistics Europe, at a price set in advance.
If the market price turns out to be higher at the time of transit than the one agreed, operators will gain but if the price is lower they will lose. But market observers wonder if the freight sector is ripe for financial speculation. "There is no dramatic volatility in the market at the moment and a substantial amount of supply. As a result rates remain fairly flat and it must be doubtful if there could be much of a market for this kind of thing," says a spokesman for the Freight Transport Association.
Apart from Penske Logistics Europe, GE Capital Services also owns trailer rental company TIP and its newly merged rival, CTR. TIP owns van and truck hire company Smith Self Drive.
' BT's Worldfreight freight information system has been launched on the internet.
It provides a load-matching service and information on freight companies.