Fledgling pallet network Alliance Freight Network (AFN) suspended operations last week. An email from managing director Peter Shortt and network director James Eardley was sent to members on 18 October pointing to "a lack of geographical coverage" and "the unwillingness of certain member depots to settle their financial obligations as a whole". Shortt tells MT: "It's down to a handful of members not paying their bills, or simply walking away.
"Members weren't paying the hub, and more importantly,
they weren't paying other members." Shortt would not name the members concerned and says some members walked away from the network without giving the notice they agreed on joining. "It gave us no opportunity to replace coverage," he says, adding that the hub had to take over deliveries. There is no confirmed date for the network to reopen, and Shortt says he is waiting for members to inform him of whether they want to continue.
The email sent to members says volumes are "at a level where it is feasible to continue operations at hub level". Shortt says: "That is the heartbreaking thing. The network was a success. Pallets were getting delivered freight was going through." MT talked to sources in the company and members, who agree that operationally the network was working. Shortt adds: "I would hope people respect the decision that we wouldn't let net delivery depots get more in debt. I think we can prove there is room for another network."
AFN opened on 3 August.
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