ISSUE 4 2011


PALLET NETWORKS Brussels height rules loom


Europe may be a land of opportunity for the pallet operators, but Europe – in the sense of Brussels and the European Commission – is also a source of many problems. Chief amongst these at the moment are the mooted plans to introduce Continental-style trailer height limits in the UK – a country which, with its lofty bridge arches, has never seen the need for such rules. As around 90-95% of all the trucks calling at the Palletforce hub are double-deckers, this would strike at the heart of the business and would put thousands of extra trucks on the country’s roads, at a stroke.


Moreover, a hub operation like Palletforce’s is based on a set number of vehicles. More vehicles might have to mean more or bigger hubs. “It would certainly make this place less efficient,” says Palltforce CEO Michael Conroy. While he believes that there is “a fair chance” that the legislation will not happen, it is a worrying development and one that underlines the need for the


industry to work together. But if the pallet operators can get their customers


– including the big


retailers, who tend to have the ear of government, even if hauliers don’t – then there is a pretty chance that the new rules can be rebuffed.


Besides Brussels, the other big headache for the logistics industry are the banks. In Conroy’s opinion, road hauliers – most of whom are small family businesses – are being denied the “headroom” to expand and are being denied access to the working capital that they need if they are to grow. “Somehow, this isn’t seen as a ‘sexy’ industry, even though a lot of these businesses are very entrepreneurial. Many are small business that have been started, in many cases, by drivers, Most are very good businesses but they’re not getting the support that they should. We don’t want subsidies, but it’s time for our political leaders, and the banks, to do their bit.”


The banking crisis is, Conroy believes, a bigger headache than


fuels costs which can, to some extent, be managed through fuel escalators. High fuel costs may just be something that industry has to live with, unless someone can come up with radical new technology like a workable battery-electric truck, and there seems to be little prospect of that happening at the moment. With Palletforce’s own trucks running over 80% full, there’s little prospect of further improving vehicle rates much more; in fact it is quite a task ensuring that they are maintained at this level. Palletforce has looked at rail, including discussions with the Malcolm Group, but at the moment the railways cannot offer the


the pallet sort of service operators that demand.


“Rail might work if there was the right infrastructure, but we need departures from our hub at midnight and delivery to all parts of the country by 10am. This is a very time-sensitive operation.” Meanwhile, the search for perfection goes on. “We’re piloting in-cab scanning at five of


our depots. One challenge in our sector is paperwork, but while the technology is proven, we need to know how it would work for us, and for our customers. “


Palletforce has also patented an oscillating scanner and scale system for its forklift trucks. The technology not only automatically weighs pallets as they come off a truck, but the system then tells the driver where to put it in the hub. On reloading onto the truck, it also ensures that the pallet is put in the optimum place on the vehicle, to ensure that it does not become top-heavy. Really, it’s a bit like a warehouse management system, but applied to trailers – and it also produces trailer manifests at the touch of a button. “We reckon it makes our hubs operate more efficiently than the competition, and we’ve taken a patent out on it” says Conroy. “Our trucks get back to their home depot a good 40-45 minutes earlier than the competition. It’s all about being quicker and slicker in this business.”


19


Lack of access to capital is headache for hauliers says Michael Conroy


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