Fuel hike forces C2000 s hand on freight charges

Feeling the pinch: Computer 2000 has been forced to act on the rise in fuel costs.

Computer 2000 (C2000) has become the latest distributor to bow to spiralling fuel costs by raising freight charges for its resellers.

The UK distribution giant confirmed it has hoisted charges for the “majority of its customers” as part of a global initiative by US-based parent company Tech Data, following a similar move by arch-rival Ingram Micro in July.

Andy Gass, managing director at C2000, said: “We have communicated face to face or in writing with those customers affected and the majority of changes have now been effected.”

Gass said he expected the majority of resellers to transfer the extra costs to end users.

“Resellers are being squeezed on product margin, so will have little alternative than to pass the costs on,” he said.

The move is part of a global initiative detailed in Tech Data’s second-quarter earnings announcement. The distributor saw gross margins drop from 4.89 to 4.85 per cent year on year in the three months to July, and is keen to get a grip on transportation costs.

Chief financial officer of Tech Data, Jeff Howells, said increased handling fees and freight charges would be needed to keep margins where they are or where they need to be.

Scott Fletcher, chief executive of VAR ANS, called for all channel firms to operate a consistent freight charge policy.“If all distributors and resellers pass on the true cost of freight in a way that is transparent, the end user should be happy,” he said.

Mike Gammie, IT service development manager at Misco, said the online VAR has yet to pass on increased freight costs. “We want to ride it out for as long as possible, but if fuel prices continue to rise, it might not be possible to stave it off much longer,” he said.