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Haulage Rates Chaos Over 10 per cent. Increase
Page 56
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WHO is applying the recommended 10 per cent, rates increase? What reception is it getting from the customer? They are the 64-dollar questions which hauliers everywhere are asking themselves this week.
In some areas the situation is one of "After you, Claude," of sitting on the fence until the air clears. In others, hauliers are not so timid, Ten per cent. has been recommended, so 10 per cent, it is, they say. But even these brave souls are keeping their fingers crossed.
Among those who pushed ahead with the increase on the green light is Mr. Peter Wise, chairman of Transport (Bristol), Ltd., and associated companies, with depots in London, Scotland and the West Country. Moreover, Mr. Wise is happy to say that they have experienced less resistance to the increase than was expected.
On the other hand. the increase has not yet been sought by Siddle C. Cook, Ltd.. of Consett, Co. Durham. Their work is mainly with local steel companies, competition in the area is very keen and they still do not know whether British Road Services have. in fact, imposed the 10 per cent. Best plan for the moment.
they feel, is to continue present contracts at current rates and to seek the 10 per cent, when new contracts are negotiated.
In much the same mood are Sunter Brothers, of Northallerton, Yorks. Most of their work is with indivisible loads and as competition in the area is very keen. Sunters and other hauliers seem reluctant to pass on the increase, although in some cases. where the present rates will stand it, they will be compelled to do so. So far as Sunters know, B.R.S. have not officially notified customers in the area of the intention to apply the 10 per cent. But one clearing house has given a lead by announcing its intention to impose the increase, and as all hauliers locally fed that higher rates are essential. Sunters are sure they will all eventually fall in line. For the moment, however. they are with the sitting-on-the-fencers.
Over to Grimsby, a comparatively compact area. Most hauliers in the district are applying the increase, says Mr. J. McVeigh, McVeigh Transport. Ltd. He adds that where evidence justifying the increase is produced his company are finding that customers arc understanding of the haulier's position.
It must, however, be appreciated. Mr. c16
McVeigh emphasizes, that this increase has come only after several years. of severe rate-cutting following denationalization, with the result that the rates applying immediately prior to November 1 were already at rock bottom.
No sitting on the fence for the Scots, however, McKelvie and Co. (B.M. and P.), Ltd., have already notified their customers that the increase recommended by the R.H.A. is to be imposed from November 1, but they have had no reaction from customers yet. So far as they know, B.R.S. have put the increased rates into effect and other hauliers have also increased their rates. By the full 10 per cent. ? That is another 64-dollar question they would like the answer to.
Mr. F. A. Jackson, of S. A. Bell, Ltd., Driffield, Yorks. whose work is mainly agricultural, says his firm plan to ask for the 10 per cent. increase on December 1. But they are going to talk to their customers first. A wise precaution, many hauliers will agree.
No Such Thing " After all." said Mr. Jackson. " there is no such thing as a fixed rate for the haulier. In these days it is the customer who says what he is going to pay," B.R.S. have already put on the 10 per cent. in the area, but so far as he knows none of their customers has attempted to switch his business, even though cheaper rates are available in the area,
"In any case." he added. "I'm not so sure that costs have gone up. Purchase tax has been reduced. fuel is cheaper. We are carrying heavier loads. Only wages have gone up." For all that there is a
case for an increase, but whether they can get the full 10. per cent remains to be seen,
Also putting off the day until December 1 are Hunters of Hull (Transport), Ltd. Mr. Hunter says he does not anticipate any great opposition. Most of his customers are "very considerate" and he is sure they will be sympathetic.
In the past, said Mr. Hunter, they sought to meet rising costs with greater efficiency, but in this direction he feels they have reached saturation point. Wages continue to rise . . "In fact they have caught up with profits." The need for an increase in rates is recognized all round, he says.
Finally, an eneonragiu note from Mr. F. H. Marks, managing director, Alfred Bell (Newcastle), Ltd., of Newcastle, Carlisle and London. The majority of their customers are accepting the need for an increase in haulage rates, he confidently states.
There is, however, the proviso that rates are having to be increased in three stages. Customers, who up to November 1 had the benefit of pre-1957 rates. were receiving the full 10 per cent. increase.
Where traffic had been accepted since 1957, the rates which his company quoted at that time took account of what were then the current costs. As a result, an appropriate proportion of the 10 per cent. increase has now been applied in these cases. Any new traffic which his company had moved in recent months had already been negotiated on the basis of the pending wage increases.
Uniformity in the announcement of an increase in charges by the Road Haulage Association, British Road Services, Ltd., and the National Conference of Road Transport Clearing Houses had proved beneficial to individual hauliers, Mr. Marks said, when arranging increase of rates with customers.