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ESTABLISHING RATIONAL RA 'ES FOR LIVESTOCK HAULAGE

17th March 1939, Page 48
17th March 1939
Page 48
Page 49
Page 48, 17th March 1939 — ESTABLISHING RATIONAL RA 'ES FOR LIVESTOCK HAULAGE
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Which of the following most accurately describes the problem?

A Schedule of Rates and Conditions Which Could be Agreed and Stabilized Now, and Which Would Give Undoubted Advantage to Operator and Customer Solving the Problems of the Carrier WHEN, on November 18 of last year, I was invited to Wolverhampton to address a meeting of livestock hauliers on the subject of haulage rates in relation to their particular class of traffic, I accepted

with mixed feelings. I appreciated the compliment underlying the invitation, but realized, before I attended, that there were limits to what I should be able to do at that one meeting.

It has to be realized that this is one of the most difficult branches of the industry, in so far as assessment of rates is concerned. The problem is quite incapable of solution by any straightforward application of figures for cost of operation and profit, as a basis for a rate per mile or per hour, or for any combination of those two factors.

I gave the matter careful consideration beforehand and satisfied myself that the principles involved, in assessing rates for this work, must be similar to those which apply in respect of rates for parcel carrying.

The procedure to be adopted must be as follows:— Determine the minimum revenue on the above basis of cost of operation plus profit, and then acquire knowledge of the traffic to be expected, its nature and its quantity. With those two sets of information available, it should be possible to build up a rates structure in which due consideration should be given to such matters as the prospective frequency of full loads, as compared with that of part loads, and, in particular, the likelihood of making up something like a full load, by collections of small consignments from different farmers or dealers.

I came to the conclusion that the proper course for me to follow at that meeting would be, not just to address those present and endeavour to put before them a solution of their problem, but to invite discussion, in the course of which I hoped to obtain from those present some information, which only they as practical men could supply, on the points just mentioned.

I knew that if I could acquire essential information of that character, I should be able, later, to suggest some sort of a basis for rates.

I was only partially successful in attaining that object, at the meeting. There was a conflict of opinion and hardly anyone could put forward data sufficiently accurate for utilization in so important a matter. I did, however, make contact, there, with an experienced cattle .haulier, one who has been in this branch of the industry to the exclusion of any other for many years and who in addition, as is admittedly an advantage, had some personal knowledge of farming.

If I add that he is in the habit of keeping records of his work with almost meticulous accuracy, and, furthermore, was perfectly willing to give me the fullest access to all that information, it will be realized that I am greatly indebted to this man, whose name must, for the time being, be suppressed.

I also found, as was particularly gratifying, that he himself had evolved -a rational method of assessing rates for cattle haulage, one which, on examination, I accepted as being probably the most practical and best suited to the purpose.

In the end, I adopted his scheme, but not his figures. 1 do not accept his figures, because they do not return sufficient profit. The table of rates which accompanies this article has been built up on this operator's scheme, but the rates have been adjusted in accordance with the figures for minimum revenue which I set out in a previous article.

• How Confidence is Promoted •

In order that I might have the full support of cattle hauliers, I have taken all of them into my confidence in this way. I have set out my own reasoning, step by step, in the series of articles of which this is the penultimate. The dates on which these articles appeared are scheduled in the accompanying panel.

I first of all set out figures for operating costs, for establishment charges likely to be met in this particular class of haulage, and for minimum profits, thus arriving at total for weekly revenue and cost per mile.

I modified the figures in my friend's schedule in such a way as to increase the meagre profits to approximately what can he claimed to be reasonable ones. I now show, by applying my schedule to a typical week's work, carried out with a typical cattle haulier's vehicle, how closely the rates approximate to the minimum revenues which I have suggested.

The week's work is set out in tabula' form herewith. Those who are engaged in this industry will agree, I think, that it needs little explanation. The rates charged are precisely in accordance with the schedule and comment is needed only, I think, as regards the third and fourth journey on the Tuesday. These two, in effect, constituted one round journey, in which the vehicle first conveyed 42 lambs from a market to a particular farm 91 miles distant and there, having unloaded the lambs, picked up two fat beasts for conveyanceto an abbatoir 391 miles away.

It will be observed that, on three occasions, the maximum number of hours per day which a driver is permitted to work were-exceeded. I understand that on those days a spare driver was employed to complete the work.

The summary at the foot is most important, especially as regards the figures for revenue. It should be noted that the vehicle actually covered 605 miles. In the article in which I indicated costs, profits and revenue. I showed that a vehicle of the capacity named, operating 800 miles per week, should earn £19 4s. or .7.68d. per mile.

The actual revenue of this particular vehicle, if the operator had obtained the rates which are scheduled, would have been £.19 Ms. 8d. It is reasonable to assume that the extra 9s. 8d. would go some way towards paying the cost of the spare driver. Similarly, the revenue per mile run-7.82d.--is 0.14d. more than that which I suggested, and can be regarded in the same light. The revenue per loaded mile, at 1.s. 2d., is 2d. less than that which it is suggested should be standardized for any quotation to which the rates set out in the body of the schedule do not apply. Reference to this particular matter is made in the footnote to that table. '

• Steering an Even Course • I wish it to be understood that, in compiling these rates and particularly in arriving at what I have stipulated as minimum revenue, I have been careful to steer an even course between two extremes the character of which I will explain.

One, which is now prevalent, is that of operating at rates which are insufficient, especially having in mind certain particular risks which beset the cattle haulier, as, for example, a period in which all haulage is stopped because of foot and mouth disease—a contingency not so remote as might be supposed.

The other is that of scheduling rates which would not be reasonable and economic, so far as the farmer is concerned. In the latter connection, I do insist that farmers must be educated to the point of appreciating that the idea that any haulage contractor is well paid for his services at 1s. per loaded mile is, untenable, having in mind present-day conditions of operation and costs which have to be borne by hauliers.

In particular, I would greatly appreciate criticisms of this schedule from haulage contractors who are interested, but I do not accept as useful criticism the mere statement that these kates cannot be obtained. That is merely a defeatest attitude on the part of such operators and will not be likely to get us anywhere. S.T.R. wri

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Locations: Wolverhampton

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