News

Volumes across all pallet networks are set to be significantly higher in the run-up to Christmas, compared with the bleak Q4 experienced in 2008, the Association of Pallet Networks (APN) predicts.

"We have had a very challenging year," says APN chairman Paul Sanders, "but compared with the outlook for the final quarter last year, members have had a very busy October and are confident they can work hard to maintain business."

However, from January 2010, VAT rates are set to rise from  15% to 17.5%, which Sanders warns could have a negative impact on retail sales.

"While networks are seeing positive growth signs now, they are still reserved about how much volumes will increase next year," Sanders says.

However, that said, individual networks have started to confirm that growth is returning to the market.

Palletline managing director Kevin Buchanan says that in October 2008 volumes were down 7.2% compared with October 2007, but during October 2009, volumes have risen 5% on last year, with approximately 10,000 pallets being processed per night.

"There is some stability returning to pallet networks, and the ongoing recession has forced firms to look at ways of removing costs," he says. "People are realising that the networks are a good economic way of distributing goods."

Adam Leonard, managing director of The Pallet Network (TPN), says  the network has now returned to year-on-year growth, with October 2009 volumes up 6.5% on October 2008, and weekly averages at 35,000 pallets per week, which translates as approximately 7,000 per night.

"It's been a very pleasing few weeks of business," Leonard states. "The confidence is still brittle, but less so than perhaps two or three months ago."

Meanwhile, Palletforce managing director Michael Conroy reveals that September volumes were up 10% on September 2008, and October 2009 is expected to show a similar rise on October 2008.

"I don't think we have seen the end of the economic problems, but we are expecting a much better Christmas than last year," predicts Conroy. "In the past 12 months, we have taken on 10 new members, with eight coming from other networks. We expect two more before the end of the year."