Palletline explores direct trunking route
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By Chris Druce PALLETLINE IS poised to make the largest change to the way pallet networks operate since it launched the concept in 1992.
Speaking exclusively to CM, Palletline MD Kevin Buchanan says the business has set up a working group to explore the introduction of direct trunking in the network to help its 66 members save money.
On prescribed routes, members could avoid Palletline’s central hubs in Birmingham, London, Manchester and Scotland altogether and trunk member-to-member, avoiding fees. However, the routes would be set and members would run irrespective of what they had to ship – which in turn would encourage hauliers to ind ways to drive volumes, while protecting the viability of the wider Palletline network. “The model is not as proitable as it used to be,” says Buchanan. “Twenty years ago you’d get £80 or £90 for a pallet, so it’s easy to get people to focus on doing it right. It’s now probably £35 to £40 for the same pallet and it’s harder. By taking out cost where you can and returning margin, you give [members] a competitive edge and a reason to keep working to be the best.” Buchanan says direct trunking will not be attractive to all members but sees it as a further innovation to offer hard-pressed hauliers. He adds that the fact that Palletline is entirely owned by its members makes such an audacious move possible, as the co-operative’s priorities are different to that of other networks operating under alternative ownership models.
Through its Palletline Club service the network is also looking at the viability of introducing a bulk fuel-purchasing scheme to get members the best deal.