The NFRN says: In an effort to make the increase sound reasonable, Menzies advises that the movement in the Freight Transport Association tables indicated that an increase of 4.7% was justified. However, mindful of the current economic conditions affecting customers’ stores, only 63% of the indicated increase would be applied.
Whilst this might sound uncommonly reasonable by news wholesaler standards, unfortunately, it leaves a few questions unanswered. For instance:
• Smiths News also bases its carriage charge reviews on the Fleet Transport Association tables, yet it recently announced a carriage charge increase of just 1.01%. Whilst no one is saying that the operating costs of both companies are identical, it is undeniable that they do similar jobs, so why is the Menzies increase almost 3 times that of Smiths?
• Wholesale distribution is not just about the cost of operating a transport fleet, it has much to do with the volume of product that is distributed. Everyone knows that sales volumes are declining, so why is Menzies Distribution applying an increase to its carriage charge bands as well as to its carriage charge rates?
• If Menzies Distribution can survive on a carriage charge increase of 2.97% in mainland UK, why is its sister company EM News in Northern Ireland, applying an additional £15 flat rate carriage charge to distribute News UK titles (that is already included in its mainland UK portfolio), which means a 50% increase in carriage charges for some retailers?
The good news accompanying this announcement is that Menzies Distribution is to drop its £8.50 surcharge that it applied from 1st October 2012 when it took over the distribution of News UK titles in those areas where News UK previously delivered direct to retailers. The removal of this charge is a direct result of the NFRN’s persistent campaigning.
Commenting on the news, NFRN National President, Colin Fletcher said: “A ‘curate’s egg’ aptly describes this mix of good news and bad news from Menzies Distribution, but, unfortunately, it is the bad news that continues to leave an overpowering stench. Menzies Distribution has much to consider about its carriage charge strategy and in the meanwhile the NFRN will continue to employ every means at its disposal to oppose this continual erosion of its members’ margins.
