P&O domination worries hauliers by Sally Nash • International operators
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say P&O's increasing domination of every transport sector bodes ill for hauliers: they fear they will pay the price in low haulage rates and high ferry rates.
P&O Stena plans to impose further freight fare rises while some international hauliers are still struggling to recover from the 12% rise in January.
Andrew Frampton, a director of Framptons International, is not as worried about the possible rate rise as he is about P&Cis increasing domination of the whole transport market, from road and rail to sea and canal. "The whole P&O thing is bad news for road hauliers," says Frampton. "The company is trying to get a monopoly on the whole market and you do need competition."
P&O chairman Lord Sterling says it is "logical" for fares on Channel routes to rise again, citing a 50% fall in short-sea rates between 1994 and 1997 when the Channel Tunnel opened.
But fears of an immediate rise have been allayed: P&O has published brochures with the 1998 rates, and promises to peg them for the rest of the year.
Many hauliers expressed concern about higher fares when P&O and Stena Line announced plans to merge their DoverCalais operation. "All our worst fears have come true," says a Road Haulage Association spokesman. "This is very damaging for our members."
However, the Freight Transport Association points out that rates fell substantially several years ago and it might be time for a rise. "There is a case for rate increases although the current rises are a bit excessive," says a spokesman.