UK Mail Closing Pallet Arm
15 Jan 2015
For many years now, the UK Mail Group has been a highly recognisable part of the logistics landscape in the United Kingdom. With a network of over 50 sites and operating in excess of 2500 vehicles, the group is set to add further to its portfolio this year with the construction of a new national hub in Coventry. However, 2015 is also set to signify another major shake-up for UK Mail, this time with a negative slant, with the closure of UK Pallets, the group’s pallet arm.
The End for UK Pallets
Although UK Pallets was the smallest part of the logistics company’s operation, it still accounted for an impressive 5.3% of the group’s overall turnover of £241 million. The difficult decision to close the pallet arm has come after a number of years of perceived under-performance for the sector. Profitability has been markedly reduced in recent times, with increased network costs being just one of the many factors affecting performance. With the UK Mail Group overall not achieving the growth it had hoped for in 2014, it was decided that the pallet arm of the operation was the one that would have to be closed, as it was singled out as a ‘non-core’ part of the business.
The performance of the wooden pallet sector of the UK Mail Group has been in stark contrast to the rest of the wooden pallet industry. As a result of the closure of the UK Pallets arm, Leicestershire-based company Pall-Ex has now agreed to step in and offer its assistance to customers and hauliers who will be affected by the move. The palletised freight network has said it will meet with UK Pallets members and customers as part of the overall changeover process.
A Year of Change for the Logistics Industry
Pall-Ex was first launched in 1996 and expanded its overall network into Europe in 2009. In addition to the UK, the firm now has a presence in Italy, Romania, Poland and France. The group is hopeful that the deal to support those affected by the closure of UK Pallets will help them to become the market leader in the industry.
For those former customers of UK Pallets who already have access to transportation, now might be the right time to take a good look into your current pallet suppliers. At Associated Pallets, you will find a superb range of heat-treated (ISPM 15) wooden pallets, stamped and certified for export. In addition, you will also find an extensive selection of top-quality plastic pallets, both new and refurbished. In a year which may mark a number of changes in the logistics industry, make sure your 2015 starts off as smoothly as possible.