Minor Pallet Networks will ‘collapse’

Weaker and smaller pallet networks will eventually go to the wall, according to Jim Scanlan MD of The Hazchem Network who previoulsy founded fortecand the Pallet Network.
The model would evolve as the larger privately owned membership networks bgun opening their own corporate depots, especially in metropolitan areas. No merges between networks were likely, however, as member hauliers would then have overlapping postcodes.
David Emslie, logistics sales director for Lynx express, said growth for the pallet networks was slowing from 35-40% to 20=25%. “There is still growth for a few years yet,” he said.
“But prices have fallen from £35-40 to £25, £26 or £27 (€51 to €59 to €37- €39) as the number of networks has grown from three or four to nine.
“Market economies dictate pallets will go the same way as the parcels business did in the 1990s,” Emslie concluded.

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