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Some Costi

1st July 1949, Page 20
1st July 1949
Page 20
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Page 20, 1st July 1949 — Some Costi
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Which of the following most accurately describes the problem?

ifficulties in

LIVESTOCK HAULAGE

the cost of operation. Because of that, it is not safe or reasonable merely to assume that the average figures quoted iii"The Commercial Motor" 'Tables of Operating Costs

apply. • In the first place, the bodywork of the vehicle is comparatively expensive and that puts up the first cost to a fairly ,high figure. Secondly, the bodywork is subject to rapid depreciation or, alternatively, to fairly high cost of maintenance. Not only is it knocked about by the cattle, but it suffers from the effect of their excreta.

There are certain special provisions and regulations relating to this class of work, such as, for example, that which stipulates that the vehicle must be thoroughly washed and cleaned after each journey. This adds to the cost of operation and must therefore be taken into consideration.

The majority of operators uses 5-6-ton vehicles with 20-ft. bodies. The load capacity averages 70-80 sheep, 120 lambs, or 8-10 head of cattle, all according to size. The weights of these animals sometimes vary within wide limits. The following are usually accepted as applicable: store cattle, 6-9 cwt. each; fat cattle 8 cwt. to 12 cwt.; sheep, 40-50 lb.; and lambs a little less than half that.

A calf weighs from 80-120 lb., and a pig from 1-2 cwt. There are, however, occasions when animals go well over the average weights and, as an indication of what may be expected the following data are of interest:— Horse and Cattle Weights

A thoroughhred Shire horse may weight from 1,800 lb. to 2,000 lb. A Clydesdale is generally a little lighter, whilst a Suffolk horse may weigh as much as 2,400 lb.

Red Poll fat cattle run from 11 cwt. to 15 cwt., batt the average is more in the neighbourhood of 10 cwt. Kerrie& weigh about 9 cwt_, a Dexter bull will tip the scale at 8 cwt., and a cow at 7+ cwt., Herefords weigh up to 17 cwt. Highland cattle up to 13 cwt. and Jerseys 8 cwt. South Devon are the heaviest cattle usually met with, and weigh as much as 171 cwt. when two years old. A calf weighs from 140 lb.

to 160 lb. .

An ordinary sheep may weigh about 50 lb., but certain rams will weigh as much as 200 lb, As for pigs, Large White boars have been known to turn the scale at 10 cwt.' and sows at 9 cwt. These, of course, are exceptional; the average weight of a Middle White pig is from 100 lb. to 150 lb.

The operating costs of the vehicle I am consideritag will approximate to the following: Standing charges per week:

licences 16s., wages, including insurances, etc., 16s., rent and rates 8s., insurance 18s., interest on capital outlay 9s. These figures give a total of f-8 7s.

over the telephone, and telephone bills are high. Then there is the work involved in organizing the collection and delivery of livestock in order to fit one job in with another to ensure the maximum percentage of loaded mileage. Markets have to be attended and there must be provision for a certain amount of entertaining.

Even in the case of a small haulier establishment costs cannot fall much short of 13 per week per vehicle. I will take £2 16s. 4d., which, added to the total operating cost of £24 3s. 8d., gives a gross total of expenditure of £27 per week. To that must be added provision for profit, and I will take a minimum figure of £6, so that the average earnings of the vehicle of the type we are discussing must not be less than £33 per week; it should be more.

As a guide to the operator whose average weekly mileage varies from the figure I have taken, I suggest that he adds £4 10s. per 100 miles when the mileage is above 500 per week, and subtracts £4 per 100 miles when it is less.

Alternatively, it may be useful to express .the charge in terms of time and mileage. The time charge is based on the £8 7s. per week standing charges, plus the £2 16s. 4d. per week -establishment cost, a total of £11 3s. 4d. actual expenditure. To that add £2 16s. 8d., the proportion of profit, and we get an even figure of £14 per week on which to base our time charge.

The basis of calculation is, of course, a 44-hour week, so that the time charge should be not less than 6s. 4d. to 6s. 6d. per hour. The mileage charge should be 10d., that is 7.6d. cost. plus 2.4d. profit.

Taking a typical day's work, we must first cOnsider what I call the outward journeys—those when the vehicle leaves

noon the vehicle travelled 20 miles and the time occupied in collecting, delivery and travelling was 21 hours. In addition, there was a wait of 3+ hours at the market between' making the last morning delivery and beginning to collect for the first afternoon journey.

The total of the day's work thus comprised, time, 101 hours, and miles run 55.

Converting these figures into a charge, IQ hours at 6s. 6d. is £3 5s., and 55 miles at 10d, per mile,comes to £2 3s. 10d. The operator must therefore earn, as an absolute minimum, £5 10s. 10d. for the day's work. Now the question arises: how are we to divide that charge as between different jobs to cover the transport of numbers of animals of a variety of kinds?

Calculation on Bulk Regarding the animals, the best thing to do is to sort them out in terms of units. Bulk must be our basis of calculation rather than weight. For example, if we take an average load of beasts to be eight, and that of sheep to be 50, then we can say that one beast is, approximately, equivalent to six sheep. In the same way one bull is regarded as being equal to three store cattle, and one fat beast equivalent to two store cattle. A fat boar is reckoned as equalling a fat beast, and three store pigs are equal to one store beast. Large sheep and calves are taken to be equal and are , reckoned, as I have already stated, to be six to one beast, that is the charge for six sheep or calves, should be the same as for one store cattle. Small sheep are reckoned at the rate of nine per store beast.

Taking the journeys I have outlined as an example of rating, there are first the outward ones. The three involved 41 hours for travelling, loading, and unloading time, to which must be added 11 hours, this being a proportion of the time the vehicle was standing out of action at the market.

We now have to apportion the total of 61 hours as between the three journeys, giving the appropriate time to each. Allowing 2 hours for the actual travelling time for the total of 35 Miles, 45 minutes are allocated for the first journey in which 13 miles was run, 20 minutes for the second of six miles, and the remaining 55 minutes for the third journey, which was 16 miles. 1 think we can divide the balance of the loading, unloading and waiting time, 4i hours, into three equal parts, allocating l hours to each job. The time and mileage figures for the three are, thus, 2i hours and 13 miles for the first one, then 50 minutes and 6 miles for the second, and 2 hours 25 minutes and 16 miles for the third.

Charging these up at 6s. 6d. per hour and 10d. per mile, the rate we have agreed, we get the following rates for each journey: £1 5s. 6d. for the first, 17s, for the second, ahd 12s. 4d. for the third.

On the first journey there were three cows and calves for three different customers, so that the charge should be 8s. 6d. each On the second journey 40 sheep were carried and, as the rate was 17s., the best way to charge wilt be at the rate of 6d. each sheep. For the third journey, when six beasts were carried at a price of £1 12s. 4d., the rate is 5s. 6d. each.

The first of the inward journeys provides us with the opportunity to differentiate between the different kinds of animals. First, to arrive at the total charge, the time occupied, including a proportion of the idle time at the market, can be taken as being 2 hours. The mileage was given as 12. The time charge therefore was 13s. and the mileage charge 10s., making Ll 3s. The load was five beasts, 16 sheep, and two calves. As the sheep and calves are reckoned at the rate of six to each beast, that load for charging purposes can first of all be reckoned as eight beasts, so that the charge as beasts is 24s. or 3s. each. The sheep and calves are each chargeable at one-sixth the rate for a beast, or 6d. each. The bill is thus made up of five beasts at 6s. each, plus 16 sheep at 6d., plus two calves at 6d., making a total of £1 4s.

For smaller vehicles an smaller loads the charge per animal would naturally be higher, but for larger vehicles it would be possible to charge less and still make a profit. S.T.R.

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