Tank hauliers striving to maintain rates and standards
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IN THE words of the folk song "the good times are all gone" and, faced with an uncertain future, rising costs and lack of clear and positive directives on impending legislation, even the more optimistic road tank operators can do little better than report no change in business prospects and can see no pattern of immediate growth.
The industry is in a recession which some sources say will last until early 1976 and with chemical manufacturers running at only between 60 and 65 per cent of their production capacity, demand for transport is falling rapidly enough to cause concern among bulk hauliers.
Falling demand is also evident to operators specializing in fuel oils. As their customers cut overtime and shift working in an effort to combat falling demand for their own products, consumption of fuel oil is dropping. Although still seasonally busy, many operators say they are not so rushed as usual at this time of year.
It is plain that operators will now need not only to go out and look for business but be prepared to "hard sell" the benefits of their particular service. Indeed, one operator involved in the UK and international transport of liquids, powders and gases has already reorganized its sales team in order to make the most of the opportunities.
In a predominately gloomy atmosphere there is one small crumb of comfort for operators specializing in contract work the present recession could push more manufacturers in the direction of contract hire in an effort to reduce costs. Responsible members of the industr are concerned that in the presen situation fringe operators (encouraged by customers) will fall into the trap o rate cutting. One of the larges independent operators has alread, received an assurance from it customers that this will not happen; bill when profits drop, cost cutting become a prime objective. The industry rightl • fears the widespread repercussions the growth of fringe operators and th continued on page 4,