DFDS Transport converts to pallet network economics

DFDS Transport has joined Palletways in what is described as a strategic partnership. DFDS will handle deliveries in the Tilbury area, which will allow it to see the operation from the inside. It will also give DFDS greater influence than it would have using the Palletways network purely as a customer. Of greater significance, however, will be an ability to provide a next-day UK service for imported freight cost-effectively. Initially only 5 to 10% of imports will go through Palletways but that proportion is expected to rise fairly quickly. DFDS becomes Palletways partner for Scandinavia and the Baltic States. The deal dets up a head to head with Pall-Ex and its Copenhagen based partner, Combifragt, which is one of the top 3 transport firms in Denmark.
DFDS Transports new UK MD, Jens Bjorn Andersen, on Tuesday announced profit for the year ended Dec 2002 of £3m, up 9.3% on the year before. Turnover was largely unchanged at £253m. ‘Margins for our road transport activities remain a concern and this will be our major focus for 2003. Our UK performance in 2002 can be judged as a success compared to to many of our competitors.‘ DFDS Transport‘s air and sea devision made a major contribution to the UK groups‘s performance, exceeding its profit target and reporting its best-ever financial results.

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