A row has erupted over delivery costs in the islands, with the local MSP calling for a public hearing.
In May last year, the family-owned haulage company D. R. MacLeod was bought by the international ferry group DFDS.
D. R. MacLeod had provided services to businesses across the Western Isles for decades.
Now, local MSP Alasdair Allan says their acquisition has seen prices skyrocket.
Mr Allan has taken his constituents’ concerns to the Scottish Parliament – but DFDS says the claims are ‘inaccurate’.
Mr Allan said:Â “A couple of local businesses have come to me to say that the price for getting a pallet of goods delivered has doubled.
He says DFDS “don’t quite have a monopoly”, but the “one other company” is “much smaller”.
“Essentially, many companies have little option but to use them [DFDS].”
‘Fragile’ local businesses
“Everyone knows that the cost of things are going up,” he says. “But no small business can budget for its transport costs being doubled.”
The small businesses, he says, have been left to “face a choice between having to put up their prices […] or trying to absorb huge increases that none of them anticipated”.
“Island communities and small businesses already face extra pressure on costs,” he says, describing the local situation as “fragile”.
Mr Allan has tabled a question in Scottish Parliament on the matter, and says he would like to see a “public hearing” held.
“It does, to me, raise issues for the [Competition and Markets Authority], as to whether some companies have a large market share in places like the islands, and they’re able to flex their muscles in a way that’s not very healthy.”
“I’m not trying to vilify DFDS,” he says. “I think the businesses who have been in touch are just genuinely mystified as to how the cost of transport and hauling to the islands can double.”
DFDS: Doubling claims ‘inaccurate’
A DFDS spokesperson says the claims of doubled prices are “inaccurate”.
“We acquired the business in May 2023 and committed to making no price increases whilst we analysed the business and assessed opportunities to reduce costs,” they say.
“However, given we are in a period of rising inflation and rising energy prices this has forced us to adjust elements of our pricing structure with effect from February 2024 which we have communicated to our customers.
“At DFDS, we strive to provide our customers with reliable and efficient transport and logistics solutions at fair and transparent prices. If any of our customers have concerns, they are of course more than welcome to contact us.”
Based in Copenhagen, DFDS has been operating since 1866, and offers both freight and passenger ferry services.
They bought D. R. MacLeod for DKK 26 million – about £3 million.
According to their new Interim Report, DFDS expects to see revenue grow by up to 8% this year.
More local reporting from the Western Isles:
Conversation