Circle sets a precedent with link-up to UK pallet network

Circle Express has become the first major air freight trucking company to link up with a UK pallet network.
The move by the UK’s biggest independent air cargo trucking supplier means agents can choose between a next-day delivery service for palletised cargo via the Pallet Track network, or Circle’s existing premium air freight trucking service.

The move reflected increasing pressure on forwarders’margins, as well as the tendency for agents to also take on logistics or general distribution work for shippers, said Circle regional director Richard Crook.

Pallet networks had also begun to penetrate those markets, putting pressure on rates.

Crook told IFWthe move was also due to an improvement in performance levels and IT capabilities by some of the pallet networks.

“Previously we had not wanted to lose control of our shipments, but now with the network we can track to the last point of distribution, ” he said.

Cut-off times were earlier, 6pm, compared with midnight for the air freight network, but it was up to operators such as Circle to get the cargo out in time.

Crook said the idea had been well received by agents and he predicted it would be used both for less urgent air freight shipments as well as forwarders’ logistics traffic.

Whereas a pallet from Heathrow to Manchester via the air freight network might cost £190, via the pallet network it might be £52, for example.

“Our vehicles are picking up shipments from the agents all the time so we will be asking them for their logistics traffic too, offering a one-stop shop.”