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24 Oct 2008
Resellers should not expect to see the recent drop in petrol prices reflected in lower distribution freight charges any time soon.
That is the message from top broadliners including Computer 2000, Bell and Enta, who are refusing to revert to the price structures they had in place before the summer petrol price boom.
Petrol prices have plunged from an average of £1.20 per litre on 17 July to as low as 98p per litre.
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But Andy Gass, UK managing director of Computer 2000, confirmed that the rises implemented by the distributor in August will stay in place for at least the short- to mid-term because freight firms had not dropped their prices.
“Petrol prices were not the only driver behind us increasing freight charges – it was also because average invoice values were coming down,” he explained.
“We are glad that we and the other distributors acted when we did because there is no room in the model to subsidise freight.”
Graeme Watt, worldwide distribution president at Bell Micro, claimed Bell had charged resellers less for freight than its rivals before it hiked prices in September.
“Therefore, it would be unreasonable to expect us to drop our prices if fuel costs are coming down,” he said.
Watt added that it would be a “crazy economic decision” if any of the broadliners were to break the mould and reduce their freight costs.
Jon Atherton, vice president of Enta Technologies, said the distributor’s freight charges would be unlikely to change until the new year.
However, Barry Dodhia, marketing manager at VAR Hemini, said: “In the same way as distributors put up their charges two months ago, if fuel costs come down they should do the honourable thing and reduce them.”
A TNT representative confirmed that the courier planned to drop its surcharges on 3 November.
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