Merger puts rival pallet networks on collision course

Dachser, the German logistics giants, who recently teamed up with UK Palletline could have the effect of brining rivals UK Pallets and Palletline into conflict.

The circumstances surrounding this perceived ‘conflict’ came about as a result of Palletline’s takeover of Rochdale firm, Leach Distribution. UK Pallets has been using the German company for its European distribution so now with Dachser formally merged with Palletline the two rivals are intrinsically ‘linked’ by the German firm. However, UK Pallets commercial director, Graeme Wilson eased any possible tension with his statement that while they would not now be handling any UK for Dachser, he still expected their European relationship to continue.

"As far as we and Dachser are concerned it is, and will continue to be, UK Pallets’ member for Europe. We have been sending an average of 70-80 pallets a night, which is a fair volume for them to walk away from."

After a meeting between Dacsher and UK Pallets last week it is business as usual according to Wilson.

He adds: "We will be a customer of Dachser. They [Palletline] can’t dictate who Dachser’s customers will be."

While UK Pallets have their side of this drama, Palletline MD Kevin Buchanan said that Dachser’s involvement with UK Pallets for their European operation must end.

Buchanan says: "We have made it quite clear that if [Dachser] wants to provide services to another network then it won’t be working within Palletline. We are not into sharing members."

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