Condor Group has set out plans to close its logistics division as a result of a fall in demand.
Condor Logistics provides freight forwarding and logistics services between the Channel Islands and the UK from depots in Portsmouth, Solihull, Jersey and Guernsey. Services include secure warehousing, inventory management, groupage, single pallet, multi pallet and bulk trailer consignments. The company employs about 180 people, with some 110 based in the UK, and circa 70 across the Channel Islands.
The company said it was entering into a consultation with staff at Condor Logistics in Jersey and at other locations about the move, which it blamed on a fall in demand for haulage services caused by the economic downturn.
“In addition the volume of shipments between the UK and Channel Islands has declined substantially since the loss of Low Value Consignment Relief (LVCR) in April 2012.
“Historically, Condor Logistics has been very active in the e-fulfilment sector and consequently has been particularly badly affected. The demise of the e-fulfilment market has caused a contraction in the market for freight haulage services as well as consolidation among the existing operators.”
Trading volumes had fallen below a sustainable level in a sector which was greatly oversupplied, and the company had made significant losses in recent months.
Condor Group director Ken Soar said: “We have taken the difficult decision to start this consultation with our employees about the closure of Condor Logistics after very careful consideration and only when many other options have been taken into account. We are keenly aware that this will cause anxiety to our colleagues working in the Logistics division in Jersey and we are committed to support them at this difficult time. We are refocusing the business on our core activities operating lifeline ferry and shipping services and these are not affected by this announcement.”
Condor Ferries, which operates services between the Channel Islands and the UK, is not affected by the move.