Pallet Loss Prevention works with the Victorian Transport Association (VTA), other industry associations and individual companies to develop a Code of Conduct for pallet hire.
The Australian Consumer & Competition Commission (ACCC) have been very helpful in getting the Code established and will be in attendance when the first meeting of the Code Administration Committee is held. This committee is currently being formed and it is intended that it represent all stakeholders involved in pallet hire.
The pallet hire industry in Australia has many good features but it is now in need of a major overhaul. Some of the practices and policies currently in place have contributed to inefficiencies in the method of transferring pallets from one trading partner to another.
Rejection policies of some companies have resulted in unnecessary pallet losses, these are situations where there is proof the pallets were received but the receiver rejects the transfer due to non-compliance with its policy.
The situation where companies can make up their own rules and then apply them exists. The application of some of these policies may be illegal and, if so, these companies which have applied them put themselves at risk of claims going back several years for backdated charges as well as the interest on compensation paid to pallet hire companies for lost pallets.
It is assumed that the legality of policies has been checked by those companies that implemented them and that risk managers in these companies would have been involved. If there have been breaches of the Trade Practices Act then other penalties may apply.
The current delay days system is another example of inefficiency and waste and should be overhauled.