In the logistics industry, hauliers have a range of pallet networks to choose from. In theory, every UK logistics company could operate under a single pallet network. So, why are there numerous pallet networks instead of one or two dominant players?
Why are there numerous pallet networks?
The answer lies in the structure of the haulage market, customer needs, and the way the sector has evolved over the last three decades.
Market Fragmentation
The UK logistics sector is made up of thousands of independent haulage companies. A pallet network lets smaller hauliers combine resources for national coverage. On their own, these companies may not have the reach or resources to offer national coverage.
By joining a pallet network, they can pool volumes with other members, creating a cost-effective hub-and-spoke system. This ensures that even small operators can compete for nationwide freight distribution.
Different groups of hauliers formed different networks, often around a hub or regional base.
Different ownership models
Some pallet networks are corporate owned whereas others are member-owned cooperatives. These different ownership models appealed to different hauliers. Some wanted shared ownership whilst others opted to join a large corporate group.
Geographical Coverage
Multiple networks exist because no single one could cover the whole UK when they started. The concept was newly established, and networks grew over years of operation. Each network grew around particular regional strongholds, and regional loyalties kept them separate. For example, some networks built dominance in the Midlands, while others were stronger in the South East or the North. Even as networks have expanded nationally, these regional roots remain important.
Service differentiation
Each network tries to stand out in its own way. Some emphasise technology and customer visibility, others focus on reliability and KPIs, while some specialise in European connections. This diversity means that customers can choose the network best suited to their type of freight, whether that’s one-off deliveries, retail distribution, or regular commercial contracts.
Competition drives quality
If there were only one network, it would be a monopoly. Pricing power would sit entirely with that network, and service innovation would likely slow. Today, competition between networks pushes investment in tracking technology, service reliability, and customer support. Networks must work harder to attract and retain members and customers, meaning everything receives a better service.
A European perspective
When we look at Europe, many of the reasons above still apply. Across Europe, the market is even more fragmented, with dozens of networks operating nationally and internationally. Because of cross-border complexity and the wider geographical scale, European pallet networks often differentiate themselves by specialising in specific trade corridors.
Final thoughts
Palletways has been operating for over 30 years, opening multiple European networks during that time and shipping millions of pallets. We have a strong reputation for good reason; we are the most trusted network in Europe, and that’s reflected in our Excellent Trustpilot rating. If you’d like to learn more about why hauliers join a pallet network, you can read our article here.