IDT and Central Charges announcement for implementation 30th September 2024
The UK economy has continued to make uncertain progress since we last addressed rates 12 months ago. GDP grew in the 1st quarter of 2024 by 0.6% after 3 prior quarters of nil or negative growth. Interest rates remain high at 5.25% and investment remains uncertain.
Fortunately, inflation has fallen – it declined from a peak of 11.1% in October 2022 to 2% in May 2024 and is forecast to remain low and relatively stable in the mid-term. The pressure on input costs remains, however, with high borrowing rates and wage inflation continuing ahead of prices – and we have seen transport business failures continue throughout the latter half of 2023 and the first half of 2024.
To give some balance we also see many Palletforce members growing and reporting stronger financial results and predicting a better outlook for 2025.
We said a year ago that we would look to avoid any in-year increases where at all possible, so that members did not need to re-address customer rates, that was achieved. Now we need to look forward to 2025.
Given the positive signs of recovery, seen in our own member pallet volumes, we are reminded of the need to strike a balance between staying competitive for inputting customers and to also make some small adjustments where necessary for specific postcodes to assist delivery. Therefore, we are implementing this change that gives every delivering member a deserved and necessary increase, allowing the opportunity to pass manageable rate increases on to customers.
From 30th September 2024 UK postcode IDTs will increase overall by 2.9%. This includes a very small number of necessary individual band and postcode changes. The impact will vary by your own requesting profile. Details of those changes are now available in the Member area of our website.
Mainland Europe IDTs will rise by an average of 2.5% with no change to customs clearance charges. A completely new IDT for Republic of Ireland in line with the relaunch of our Irish service is also available in the member’s area of our website.
Additionally, we have taken the decision to increase the Saturday surcharge to £50 per consignment, all other surcharges remain unchanged.
Central Charges
Like members, Palletforce is also impacted by cost increases, and we also need to ensure that we continue to invest in our people, to recruit and retain the best, particularly our FLT drivers, so we will also be making necessary changes to central charges. We will continue to work alongside our members to ensure we remain the best service provider in the pallet sector.
From 30th September 2024 the base network hub fee will increase to £7.37, and the network IT fee will increase by £0.01 to £0.22 per pallet input and delivered.
The market remains uncertain notwithstanding the potential of a change in government and policy. In our sector in particular we continue to see business failures and associated bad debts. Palletforce will continue to ensure we have measures in place to protect the interests of our membership through these difficult periods.
As with recent annual announcements, we will review the IDT and central fees again in March 2025, and respond accordingly should the economic situation dictate.
Regards, David
David Breeze Network Development Director
IDT and Central Charges announcement for implementation October 2023
The UK economy remains challenging. There are reasons for optimism, but growth rates are low and with interest rates continuing to rise to offset high inflation, this brings continuing pressures on consumer spending. In May a fall in inflation was expected but did not happen, with core inflation rising and as a result the Bank of England raised interest rates by a whole 0.5%.
Over the last year we have seen fuel prices fall sharply to levels below those experienced immediately before the war in Ukraine. However, vehicle purchase and component costs remain very challenging, alongside previously increased wage costs.
We said a year ago that we would look to avoid any in-year increases where at all possible, so that members avoided the need to continually re-address customer rates, that was achieved. Now we need to look forward to 2024, conscious that some networks are putting in more than one increase per year to catch up, whilst one network has held all rates for two years.
Our previously stated mechanism to raise IDT by CPI, followed over recent years, was relaxed as we faced up to double-digit inflation in 2022. Now with expectations of healthy falls in the inflation rate in the second half of 2023, and a return to the previous normal late in 2024, we think an inflation busting rise is not in the interests of the members when volumes in the pallet sector are slowly recovering. There is a case to do something more moderate than last year, and to also make some small adjustments where necessary for specific postcodes. Therefore, we are proposing something that gives every delivering member a deserved and necessary increase, allowing the opportunity to pass manageable rate increases on to customers.
From October 2023 UK and Irish service IDTs will rise by 3.5% across our network, with an additional and necessary very limited number of band changes to limited postcodes. Detail of those changes for October 2023 implementation are now available in the Member area of our website.
European changes will be notified in the next couple of weeks and will go live at the same time.
Central Charges
No different to members, Palletforce is also impacted by cost changes in exactly the same areas, and we also need to ensure that we continue to invest in our people, to recruit and retain the best, particularly our FLT drivers, so we will also be making necessary changes to central charges. By us continually investing in our infrastructure, we will continue to work alongside our members to ensure we remain the best service provider in the pallet sector. From October 2023 the network hub fee will increase to £7.14, and the network IT fee will increase to £0.21 per pallet in and out.
The economic outlook remains uncertain. Necessary rises in IDT and central charges, although significant, do not fully mirror the current levels in inflation. The market remains turbulent; therefore, we will review the IDT and/or central fees independently again in March 2024, and respond accordingly should the economic situation dictate any further changes in 2024.
Regards, David
David Breeze Network Development Director
IT Drop In | Thursday 15th December 2022
Dear members,
The next IT Drop-In session will be on Thursday 15th December 2022 between 2pm and 4pm.
The monthly IT Drop-In sessions are designed to ensure we continue to pioneer the best technology systems, and to get a feel for the changes and development we can offer your depot.
The next session will be:
Date: Thursday 15th December Time: Drop in between 2pm-4pm Location: Zoom video call, register here – limited spaces available: Click here
The sessions are aimed at those individuals within the depots who are using the technology provided by Palletforce. They will help us identify any common issues which we may need to focus on to make processes easier for your business to take advantage of, and benefit from, all the features of our technology products. The drop-in sessions are available for constructive feedback and questions allowing you and your depot to have your say and allowing us to view any changes that would benefit the network.
If you would like to join the drop-in session, please register as soon as possible. Places are allocated on a first come first served basis and there are a limited number of spaces available. If we receive a high amount of interest, we will look to hold further sessions.
Please also send any questions you’d like to be answered on the IT drop-In session to [email protected] by 11am on Wednesday 14th December 2022.
Many thanks,
Kate Lovatt
IT Director
EU Gateway 307, 350, 351 Update
Customs Declaration Service
Important: Relaunching our Eastern European Services Webinar
Dear Members,
The European Team will be holding an update webinar about relaunching our Eastern European Services on Thursday 10th March 2022 at 2:30pm (GMT) for 1 hour.
An invitation will be sent to you directly from Zoom. If you have not received the invitation, please register here.
We look forward to your attendance. If you have any questions, please do not hesitate to get in touch.
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