www.truckandtrack.com Winter 2024/25 Truck and Track 39 PALLET NETWORKS The Association of Pallet Networks had a successful year of campaigning and improvements in 2024, and intends to continue pushing for the success of the sector in 2025 in line with its key pillars of Service, Safety and Sustainability, which includes the development of talent and environmental protection. UK Hubs cut safety-related incidents for the sixth year running, thanks to the tireless work of the APN Health and Safety Forum. This has H&S experts from all the eight major pallet networks, and develops best practice, along with resources and employee education initiatives. We also made great strides in improving sustainability at UK Hubs, including reductions in mains gas and electricity usage, a 28% cut in water usage, and a 6% reduction in CO2 emissions. Total waste reduced by 57% with landfill/incineration waste dropping by 30% and recycled waste reaching 48% which was twice as much as in 2022. Finally, we reduced paper use by 28.4% - or 675,000 fewer sheets. Careers focus The need for new and skilled talent is pressing for logistics as a whole, which is why we have continued our work to raise the awareness of the wide range of careers and training in logistics. We support Generation Logistics, and we were very active in highlighting the progress of the National Lorry Week vehicle, as it attended showcase events throughout the country in November. However, the need for support for our industry is more fundamental than any one issue. That’s why we joined our voices to those of several other trade associations, including Logistics UK, Road Haulage Association, UK Warehousing Association, sending a letter to Rt Hon Rachel Reeves, MP, Chancellor of the Exchequer. The recent Budget has created substantial additional costs for small and medium size hauliers which are the lifeblood of the logistics industry, and arguably the circulatory system of the entire goods-based economy. The change in business rates multiplier will disproportionately affect hauliers which need extensive land areas as operating centres and depots, as well as our own members’ Hub operations. This land is expensive and often in key geographic locations, but offers a low return compared to other land uses. Add to that the change in employer’s National Insurance contributions and the threshold at which they become payable. The extra cost to logistics of this NI hike is substantial, calculated at £1.7bn. “Our argument to the Chancellor is that this is anti-growth and inflationary,” says APN Chairman Paul Sanders. “Inevitably, it will squeeze haulage operations which already operate on thin margins, and make transport of goods more expensive for all our key services, like NHS, and for manufacturers and retailers. Ultimately, the consumer will have to pick up the extra cost, or businesses will have to reduce staff numbers, at a point when we need to bring in and train more young people for the essential skills and workforce of tomorrow.” APN is acutely aware of the essential role its members play in facilitating cost-effective, environmentally friendly, national transport solutions. By employing hub and spoke models, the pallet networks allow regional SMEs to offer a national distribution service to their customers at reasonable prices and without unnecessary empty mileage. In fact, our vehicle utilisation for 2023 was eight percentage points higher than the national average. The value of the pallet networks goes beyond the transport itself, however. By enabling regional hauliers to compete with 3PLs in terms of national distribution, and to offer a full service for individual pallets as well as dedicated transport, we ensure that these important regional employers remain competitive, relevant and viable. These 750 regional hauliers delivered almost 29 million pallets to businesses and homes across the country in 2023, with a 97% intact on-time delivery success rate. That’s no small achievement, and no small contribution to the UK economy. We have every expectation that our figures for 2024, when compiled, will be equally impressive. The APN will continue its work on safety, sustainability and service with the UK pallet networks throughout 2025. We hope you follow us on social media and support our goals, which are designed to enhance the logistics industry at large. www.theapn.co.uk Paul Sanders, Chairman of the Association of Pallet Networks 2024 A year of campaigning TRUCK & TRAILER SOLUTIONS WELCOME TOALLPORTS GROUP allportsgroup.co.uk
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