A bitter row has broken out over produce freight charges at Heathrow Airport which could end at the door of the Competition Commission.
Three freight forwarding companies - Perishable Movements Limited (PML), H&M Freight Services and another company that did not wish to be named - have attacked British Airways over its decision to allow other companies into its handling centre.
The trio is concerned that Norbert Dentressangle (ND) benefits from a reduced handling rate of 0.065p/kg compared to the 0.075p/kg it is charged, while ND and Morgan Air, also based at the Perishables Handling Centre (PHC), could have access to its customer information.
The group of companies argues that it puts around 30,000 tonnes of produce through the centre each year and the situation “is not a fair playing field” due to “an unfair advantage given to our competitors, the ability to undercut and also approach our customers through Norbert and the discounted rate”. The trio has called for the discounted rate to be abolished.
Documents obtained by freshinfo reveal repeated attempts at correspondence with BA, including a letter to ceo Willie Walsh, but to little avail.
The correspondence between the companies and BA reveals a frustration with BA’s unresponsiveness despite a meeting on the subject and PML md Mike Parr said the situation is a “monopoly” and he intends to write to the Office of Fair Trading, which may refer the case to the Competition Commission.
H&M md Hasnat Malik added: “The PHC should be, and I believe was, an extension of the BA shed in order to make the flow of perishable cargo more efficient. It turns out it is now a competitor created and partly funded by BA. We have no option but to collect our cargo from ND.”
In one email, a BA employee agreed in principle to staff from forwarders being present in the PHC, subject to terms and conditions, to help eliminate the risk of commercially sensitive information leaking.
A spokesperson from British Airways World Cargo (BAWC) said: “BAWC is aware of PML’s position with regards to our perishable handling rates and following a meeting with them, we have been working to formulate a suitable response.
“The PHC continues to grow its business in a manner in keeping with competitive business practices... We are committed to working with all parts of the perishables handling supply chain to ensure that the best possible levels of value and service are available.”
Parr said: “It simply isn’t a level playing field. We put a huge amount of business through the centre and are being ignored.”
The spat follows a period of change at the Heathrow hub, with ND buying Christian Salvesen in a £254 million deal in 2007.
Last week, ND announced that it had secured business with companies including vegetable suppliers Barfoots and Sandfields, as well as freight forwarders Morgan Air and Jones Dooly.
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