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Exel Logistics is sued over pallets

5th February 1998
Page 7
Page 7, 5th February 1998 — Exel Logistics is sued over pallets
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Which of the following most accurately describes the problem?

• Exel Logistics' magazine distribution division is being sued for £100,000 by Leeds-based British Printing Company over the alleged retention of 7,000 hired pallets.

In the writ, issued on 26 January, BPC accuses Exel of failing to return the Chep pallets used for hauling magazines for London based-IPC Magazines and specifically IPC's distribution arm Marketforce UK.

Marketforce also uses Exel Logistics to distribute Commercial Motor nationwide—a contract which has been hit by difficulties.

The writ states that since June 1996 Exel has taken delivery of a large number of Chep pallets from BPC which it had to return within a reasonable time. BPC will contend this time period was three weeks.

Despite demands for their return by 15 December 1997, it is claimed that since June 1996 7,276 excess pallets had been wrongfully detained by Exel.

BPC claims this cost it an extra £87,202 in excess hire charges. With interest and damages the claim against Exel exceeds £100,000.

BPC and Exel Logistics declined to comment.

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Locations: Leeds, London

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