News

While the suspension of operations at Alliance Freight Network (AFN) may have been greeted with some schadenfreude among its longer-established rivals, it is clearly unfortunate for those who have lost out as a result. It also reinforces the question asked by many of late: has the UK pallet market reached saturation point?

In May this year, Global Pallet System (GPS) suspended operations and then went into liquidation a few weeks later. The management cited a number of basic operational  issues that contributed to its failure. Then in August AFN emerged. "We are here for the long haul," managing director Peter Shortt told MT at the time - and we didn't doubt that he meant it.

The circumstances that led to AFN's suspension appear at face value to be markedly different to those that hit GPS. Indeed AFN members tell MT that the network was operation-ally sound. Shortt points the finger of blame at some member depots that were unwilling to "settle their obligations as a whole" ( failing to pay not only the hub, but other members too) and a lack of geographical coverage.

Further reinforcement then of what Pallet-force told MT earlier this year: "It's very hard now to find players of the quality you need and to find people with the network ethos." In an already competitive market, where the established players are having to work harder than ever to ensure success, what are the chances of another network successfully launching? We await developments with interest...