Guernsey Press

Failure of freight firm ‘no threat to supplies of food’

FREIGHT services are secure, despite the failure of Channel Island Lines, Policy & Resources vice-president Lyndon Trott has said.

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(Picture by Sophie Rabey, 27896450)

The freight company, which also owns Paul Davis Freight Services, ceased trading over the weekend due to the coronavirus lockdown, with the loss of 12 local jobs.

‘These freight operators were a key component in supporting our supply chain particularly in relation to moving goods destined for our construction industry, so there will clearly be a knock-on effect for that sector once we are through this difficult period,’ Deputy Trott said.

‘In the short term, there should be no impact on the supplies of essential goods such as food as the cold food chain is handled through different operators. Our supply chain remains strong for these essentials.’

Deputy Trott said the latest news was not a surprise.

‘From the start we have been open and frank with our community,’ he said.

‘Government will not be able to save every business, despite the measures that are currently in place and additional measures under review.

‘However, the message is clear. I would encourage every business to consider the measures we have put in place in support, including the loan guarantee scheme, grant scheme and payroll co-funding scheme in relation to their specific circumstances.’

A statement has been issued by the company.

Channel Island Lines combined with Paul Davis Freight Services at the end of 2019 to form PDFS.

‘Due to very difficult trading conditions, as a direct result of the impacts of Covid-19 on current and forecast volumes and cash flow the boards of directors of all Channel Island Lines group companies, including Paul Davis Freight Services Limited (PDFS), have concluded that they have no alternative but to cease operations with immediate effect,’ it stated.

‘Customers with goods at depots in Jersey, Guernsey, Bristol and Southampton are being contacted to give them access to collect their goods.’

Grant Thornton will be formally appointed to oversee the group’s affairs and, where possible, to assist employees with their statutory entitlements.

The group employed 80 people – 12 in Guernsey, 30 in Jersey and 38 in the UK.

The company was only formed in 2013, following the collapse of another firm, Huelin Renouf. It continued to charter container ship the MV Huelin Dispatch until the end of 2018. It then moved to shipping its goods by trailer on Condor’s vessels.

The latest decision affects Rockayne (Jersey) Limited t/a Channel Islands Lines, Paul Davis Freight Services Limited, Channel Island Lines (UK) Limited and Channel Islands (Guernsey) Limited.

Paul Davis Freight Services was formed in the 1970s and was offering services for business and domestic deliveries. This meant that delivered small products, as well as pallets and trailer loads.

This company is not the only one having difficulty during the current crisis.

The UK Chamber of Shipping group has issued a statement to the UK government should draw up a multi-million pound fund to support the shipping industry. The UK shipping sector moves 95% of the country’s trade and employs more than 180,000 people.

Last week Condor warned that it was expecting freight loads to drop, as shops were closed and many traders were unable to operate, meaning they did not need supplies.

Condor was recently sold to an investment consortium involving Brittany Ferries. Brittany Ferries, like Condor, is operating a freight-only service, with drivers and boat staff having to stay separate to avoid an outbreak of coronavirus.

Condor CEO Paul Luxon said local freight services were safe.

‘Condor continues to provide ferry freight shipping services to a wide range of logistics and distribution clients in the islands,’ he said.

‘We were saddened to hear the news of Paul Davis Freight Services, as Condor has been a provider of shipping services to the company for many years.

‘We also spare a thought for the staff affected, many of whom we know personally, both here in the islands and the UK.’