Eurotunnel price scheme ‘absolutely crazy’

TRUCKING chiefs have denounced Eurotunnel's new pricing strategy designed to lock in loyalty and boost revenue.

One accused them of being "off their rocker" and out of touch with reality. Another said the new scheme was "absolutely crazy".

The Channel Tunnel operator has introduced a quota system that rewards haulage customers according to how often they use the freight shuttle.

It aims to deter "fickle" customers from using the tunnel as an insurance policy when there are problems with the ferries.

Every day of industrial action by French workers costs the haulage industry £1m, according to the Freight Transport Association (FTA), based in Tunbridge Wells.

But critics complain that the deal penalises clients who go over the quota, triggering a steep price hike to £750, the standard freight fare.

This has prompted a threatened boycott by a number of customers, including Mike Beer Transport, a 30-year old Dover business.

Mr Beer typically sends 150 lorries a month through the tunnel - and around 450 on the ferries - but says he will not put any more with Eurotunnel when the new pricing structure is introduced in the New Year.

Mr Beer said the new arrangement also involved a 50 per cent price hike. The company is paying on average £80 more to cross by shuttle than ferry.

He accused Eurotunnel of "arrogance", saying the company was "absolutely crazy" to launch the new scheme. It was unlike anything he had ever known.

He said: "We've asked Eurotunnel to close our account. I believe it's a very bad decision and it's going to hit them hard."

It was difficult to predict usage in such a precise way and, anyway, most of his customers would not accept higher prices. "As a company, we can't work with that scenario," he said.

Eurotunnel had not offered a better service than the ferries, he said, and often there had been problems with the operation. "Overall, the ferries over a lot of years have given us a better service."

He hoped to secure a better deal with Eurotunnel Plus, an independent agency based in Ashford. But if not, he would not send any more lorries through the tunnel.

Hugh Thompson, managing director of Seymour Transport, based in Larkfield, near Maidstone, is a regular but smaller user.

He said: "Imposing penalties is bloody ridiculous, they are off their rocker. They are not in touch with reality.

“The reality is that the right price for getting a truck over to the Continent doesn't have to be more than £200. This will anger a lot of customers and they will just walk away from it."

The new system is part of a wide-ranging strategy by Eurotunnel's new French directors to earn more revenue in a competitive market.

The Chunnel, crushed by debts of more than £6bn, needs to generate more income urgently to avert a possible takeover by its bankers.

Eurotunnel spokesman Kevin Charles said only a few customers objected to the new pricing structure.

He said: "Yes, we have had one or two customers who have made the media their first port of call. They are, by and large, not regular Eurotunnel customers."

Most had been sympathetic. "The response from the vast majority of customers has been very encouraging," he said.

Mr Charles said customers would not be penalised for sending fewer lorries than expected, although the quota would have to be renegotiated.

He was not worried about the possible loss of business. However, cross-Channel ferry operators are hoping more business will come their way as a result of the Eurotunnel move.

An FTA spokesman said: "At the moment we don't know if this will lead to extra thousands of lorries coming through Dover every day."

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