Questions Answered
Page 59
Page 60
If you've noticed an error in this article please click here to report it so we can fix it.
TM MED1ATELY any amendment or addition to the already I multitudinous regulations concerning road transport is announced, the relevant details are currently reported in the news pages of this journal. Additionally, as appears with this article, these successive announcements are summarized periodically for the convenience of readers wishing to refer back to a particular publication.
Some readers, however, may wish to be kept informed directly by H.M. Stationery Office as and when relative publications become available. To facilitate this, two schemes are available. The more expensive costs £3 per annum, for which subscription the reader will be kept posted by H.M.S.°. with the Daily List of Government Publications. Alternatively, when posted weekly the cost is 17s. 6d., and as the name implies the publications listed are comprehensive, including matters relating to transport. As both the cost and postage charged are given for each publication the reader is then able to order direct from whatever office is most convenient.
The other scheme relates to the notification of the issue of Statutory Instruments by H.M.S.°. on a monthly basis on payment of an annual subscription of 10s. 9d. Whilst issued monthly, the December issue takes the form of a consolidated yearly edition.
30-CWT. VAN COSTS A reader asks for the cost of operating a 30-cwt. van, fitted with petrol engine and averaging either 100 or 200 miles a week.
Assuming that the vehicle has an unladen weight of 1 ton 15 cwt. and operates on C licence, the weekly cost of licensing will he Ms. 11d. Where an adult driver is employed the cost of wages will be £10 I3s. lid, a week. This amount includes the wage paid to a driver for a basic 42-hour week in a Grade I area as defined in the Road Haulage Wages Regulations, employer's insurance contributions and an adjustment for holidays with pay.
Rent and rates in respect of garaging the vehicle are estimated to cost the equivalent of 15s. 6d. a week, whilst vehicle insurance adds 10s. 7d, a week, based on an annual premium of £26 8s. as applicable to a medium-risk area.
Assuming an initial outlay of £811, interest charged at a nominal rate of 5 per cent adds 16s. 3d. a week, so giving a total of £13 7s. 2d. for these five items of standing costs. Where a 42-hour week applies the corresponding standing cost per hour is 76-33d., or alternatively 32.06d. per mile when averaging 100 miles a week.
Running costs are similarl made up of five items, of which the major one is fuel. Assuming petrol is purchased in bulk at 4s. Id. a gallon and an average rate of consumption of 17 m.p.g. is maintained, the fuel cost per mile would be 2-88d. However, in this instance the average weekly mileage given by this reader is so tow that it would be reasonable to assume a high proportion of stop-and-start work. Accordingly an additiOn of 10 per cent will be made when averaging 200 miles a week and 20 per cent at 100 miles a week. Fuel cost then amounts to 3-46d, a mile at 100 miles a week, while lubricants add 0.22d. Tyres are reckoned to cost 0.60d. a mile, assuming a mileage life of 25.000. Maintenance, inclusive of washing, servicing and repairs, is estimated to cost 2-69d. a mile, Incidentally, because it is assumed that washing, and possibly minor servicing, will be done on a weekly basis, this item of running costs
increases slightly as the average weekly mileage decreases.
To obtain the balance to be written off as depreciation the equivalent cost of the original set of tyres is deducted from the price of the vehicle, with a further deduction relative to its estimated residual value. As the estimated mileage life of this van is reckoned at 100,000. the depreciation cost per mile would normally be 1-61d. But again, because of the low mileage, some allowance must be made for the effect of obsolescence, which here will amount to additions of 25 per cent at 200 miles a week and 50 per cent at 100 miles a week, i.e., 2.41d, a mile in the latter case.
The total for the five items of running costs is therefore 9-38d. a mile, or £3 I8s. 2d. a week when 100 miles are averaged. Added to the previously calculated standing costs, the total operating costs for this 30-cwt. van when averaging 1015' miles a week are 41.441d. a mile, or 117 5s. 4d. a week.
When 200 miles a week are averaged the following adjustments are necessary. Whilst the several items o: standing costs remain the same, when expressed as a cost per mile this is reduced to 16.03d.
Because of the increase in the average weekly mileage, the fuel cost per mile now becomes 317d., maintenance 216d. and depreciation 2-01d. With the items of lubricants and tyres remaining the same, the total running cost per mile at 200 miles a week is 8-16d., whilst the total operating cost is 2419d. per mile, or £20 3s. Od. a week.
It is significant to note that when compared with the corresponding amount of £17 5s. 4d. when 100 miles a week were averaged, the additional 100 miles (200 miles in all) add only £2 18s. 4d. to the total, the equivalent of 7d. a mile. Actually. of course, the major factor here is the very high cost of maintaining any vehicle for such a comparatively low average weekly mileage as 100.
EXTENT OF THE PETROL TO DIESEL. TREND
A major trend in commercial vehicle manufacture in post-war years has been the swing from petrolto oil-engined vehicles. This trend has been particularly noticeable in the quantityproduced range of vehicles, with the trend progressively including the smaller-capacity vehicle. A reader asked for an indication as to the extent of this trend.
This is an instance where standard statistics relative to the whole range of commercial vehicles could he somewhat misleading. This is because the oil engine has been well established in the heavier class of commercial vehicle for many years, even before the war. The post-war trend towards oil engines is therefore probably more clearly shown by reference to the comparative output of a leading manufacturer in the quantity-production group, which is as follows.
Relative to goods vehicles in the 3to 7-ton capacity, 83 per cent of those sold on the home market and 60 per cent of those exported were fitted with oil engines in 1962. The corresponding overall figure was 66.7 per cent. In 1959 the corresponding figures were: home market, 64-9 per cent; export, 62-7 per cent, and overall, 57-1 per cent.
It is significant that even in the range of smaller vehicles produced by this particular manufacturer where oil engines are available, sales of this version represent at least 50 per cent_
ANTICIPATED EARNINGS
Earnings are obviously of prime interest to every operator. But when quoted in isolation—as, for example, as anticipated weekly earnings on a particular contract—they can be misleading. A reader writes stating that he already runs a small van and has been interested in an advertisement for owner drivers able to supply vehicles with a claimed potential earning of £90 a week. He writes asking for comment.
By way of example as to what is involved in such earnings, a 5-ton platform vehicle, fitted with oil engine, would have to average 1,000 miles a week, or an equivalent amount of work, to earn. £70 2s. Od., as shown in "Tire Commercial Motor Tables of Operating Costs ". This amount is based on a total operating cost of £50 ls. Od. plus 20 per cent for overheads and 20 per cent for profit margin:
The reader adds that the advertiser is able to assist in the application for the appropriate carriers' licence. In this context it is most important that the duration of such work should be given serious consideration before entering into any such contract. Particularly does this apply if a special type of vehicle or body is required for the work. Additionally, whilst the advertiser may be in a position to support any licence application applicable to his particular work, consideration must also be given to the owner-driver's position, relative to the conditions of licence, when the original work terminates.
QUOTING FOR LARGE BULK MOVEMENT Quoting for the movement of a large tonnage in bulk is the subject of another inquiry. The vehicles will be 8-wheeled tippers working double shift with arduous operating conditions. They will cost approximately £5,000 each, whilst the average weekly mileage will be 500.
With an unladen weight of 8 tons the annual licence duty will be £156, or the equivalent of £3 3s. 3d. a week. Wages (double shift) will cost the employer £23 18s. Od. for a basic working week for each driver, and rent and rates are reckoned
at 4s. 41. Because of the high initial cost and capacity of this vehicle, insurance costs £5 9s. 2d. a week, whilst interest charges at 5 per cent amount to £5 a week. The total for the five items of standing costs is therefore 138 14s. 8d., or 18-59d. a mile.
Because of the arduous conditions fuel is reckoned to cost 7-18d. a mile, assuming 7 m.p.g. is maintained, and lubricants 0.31d. a mile. With a 50 per cent increase, tyres cost 3.93d. a mile and maintenance (with a 25 per cent increase) costs 4-36d. a mile: In this class of work individual conditions can vary substantially and with them the ultimate life of a vehicle. In this case it will be arbitrarily assumed that with yearly mileage of 25,000 (i.e., 500 miles a week) an estimated life of six years (150,000 miles) will apply. The depreciation cost Oer mile is then &52d.
The total running cost is then 22.3d. a mile, or £46 9s. 6d. a week. Correspondingly, the total operating cost is 40-89d. a mile, or £85 4s. 2d. a week. These amounts are the 'actual cost to the operator, to which additions have to be madefor overhead costs appropriate to the business concerned and such profit margins as arc commercially prudent relative to the duration of the proposed contract.
. New Companies
Feindles Transport Ltd. Cap. £1,000. Dirs.: S. Fcrtleman and S. . V. Fertleman. 36 Hendon Avenue. Einchley, London, N.3. Sec.: S. V. Fertleman. Reg. office: 29 Manchester Square, London, W.I.
Barnwell Transport Ltd. Cap. £1.500. Dirs.: F, M. Chapman, Kingsthorpe Lodge. Barnwen, Peterborough; D. R. Chapman. Hill Farm. Barnwell; R. W. Chapman. Sec.: Y. H. Hook. Reg. office: South Lodge, Barnwell, Peterborough.
R. H. Hangerffeld Hauliers Lid. Cap. £100. Dirs.: G. R. Roddam. Springwell House, Bishop Auckland; R. H. Dangerfield, 28 Eastlea Avenue, Bishop Auckland. Sec.: G. R. Roddam.
T. and S.E. (1963) Ltd. Cap. .E100. Objects: To acquire the business of hauliers and contractors and of stone, gravel, sand and quarry owners and workers, etc., carried on by T. and S. Element Ltd.. in Birmingham and elsewhere. Dim:: S. Element. 54 Greenhill Road, Blackheath, Birmingham; T.' Element, 330 Eacheihurst Road. Walmley, Sutton Coldfield: F. W. Element. G. W. Element and S. H. Element. Sec.: S. H. Element. Reg. office: Salford Bridge Wharf, Erdington, Birmingham, 24.
I. H. Lewis (Vehicles) (Cardiff) Ltd. Cap. £100. Dim.: R. T. F. Plant, "Belmont ", Tyla Rhosyr,
Cowbridge, Glam; V. G. A. Upton, Tensing Close. Llanishen. Cardiff; G. Ross. 17 Si. Mary's Road. Whitchurch. Cardiff. Sec.: M. E. Plant. Reg. office; St. Dasids House, Wood St., Cardiff. Broinpton Transportation Ltd. Cap. £100. Subs.: S. N. Lucas and F. A. Dean. 6 Surrey Street. London. W.C.2. Sec.: S. H. Lucas. Reg. office: 6 Surrey Street, London, W.C.2.
A. W. McDonnell Jar. (Haulage) Ltd. Cap. 0,000. Dirs.: A. W. McDonnell jnr., 15 West Meadows Road. Cleadon. Sunderland: P. McDonnell 42 Nalley Avenue, East 13oldon; A. W. McDonnell snr.. South View, Station Approach. East Boldon. Sec.: G. R. Davison. Reg. office: Station Approach, East Bo/don, Co. Durham.