United delays hauliers' payments
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• The recession in container haulage hit a new crisis last week as hundreds of operators working for United Transport's container company fell foul of longer payment terms.
United Transport Container Holdings told its UK and Continental hauliers it is to extend its current 45-day payment terms by an extra 19 days because of the depressed container market. Last week hauliers expecting payment for work in May received a letter telling them of UTCH's unilateral decision.
Many of them have told CM they are furious about the move because it could put them out of business. In its letter UTCH, a BET-owned company, said the revision of payment terms was necessary because many of its customers had "considerably extended their payment to ourselves". UTCH owns 5,000 containers but contracts out its haulage.
Humberside owner-operator Glenn Rylatt has been holding a container in protest this week, telling UTCH that if it does not
pay him immediately his business will close. Rylatt, who bought a trailer and tractive unit for exclusive work with UTCH, says the lack of warning of the change ruled out negotiation with his bank. Now he says he could lose his home. "If they'd just given me notice I could have talked to the bank — United Transport have closed me," he told CM on Monday_ However, as CM went to press on Tuesday, UTCH had promised to give Rylatt a cheque immediately for all his May work, providing he took the container to its depot in Hull. On the advice of his solicitor, Jonathan Lawton, Rylatt refused to hand over the container unless the
company gave him a written undertaking that the cheque would not bounce.
Another subcontractor, who did not want to be named for fear of reprisals from UTCH, told CM: "We have had no prior notice of this and you can imagine the position it puts us in with our creditors who expect payment on time is there any wonder they (BET) can continue to grow and prosper when they don't pay their subcontractors."
Owner-operators' body Port and Containers United Trans port Association condemns the move but says it is endemic in the container industry. A spokeswoman says: "Companies are holding back and making longer payments. They do as they Like.. .they haven't the fuel bills and the vehicle tax that the owner-driver has to pay."
But UTCH says it is not asking hauliers to take on the rate reductions imposed on it by its European customers, and claims that hauliers will benefit from an improved payment system. Finance director Les Rogers says: "Our customers are extending terms and reducing rates to us and we've had to look long and hard at that to control the cash in and cash out. We've absorbed this for 12 to 18 months and we're at the point where it can't carry on." Last year the company made a £3.6m profit on a turnover of nearly £70m. Rogers says the timing of the announcement is "unfortunate" but adds: "Whenever we would have put the policy into action we would have had the same reaction."