Panic delivery needed...?
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Call in the trouble shooters
by David Lowe, MInstTA
The release of small vehicles from carriers' licensing has added impetus to the expansion plans of a specialized small-vehicle operator.
SINCE October 1968 when light vans under 30cwt unladen weight were released from carriers' licensing, a large number of small businesses has sprung up offering transport services with these small vehicles. In addition, many existing haulage contractors now also offer small delivery services. The general trend of this new branch of the haulage industry seems to be towards the delivery of parcels for which these vehicles are obviously most suited.
An operator with a different idea is Benjamin Lay (Transport) Ltd., of Leicester, which has operated a "panic delivery" service since 1962. This company caters not so much for the normal delivery of parcels traffic but rather for the urgent special delivery of anything from a letter or contract to a piece of factory equipment or supplies to keep a production line going.
Panic wagons Although many large and well-known companies often use this service, they prefer to remain anonymous—it isn't the done thing for such organizations to admit failings in their normal delivery arrangements, or inefficiency, not to the extent of requiring panic deliveries. . . . In fact, some don't like even to have the sign-written "Panic Van" and "Panic Wagon" vehicles seen on their premises. However, they are more than grateful for the service! The extent to which such a service is needed by industry is indicated by the way in which the panic delivery business has grown—and by its future plans.
A haulage business was started in 1960 by the late Benjamin Lay with three vehicles on a "C"-hiring licence. In 1964 Mr. Lay gave these vehicles to his son Roy, now managing director but at that time a long-distance driver for another haulier. Two years later another business operating four tippers and one van on Contract licence A was taken over and the contract licence changed to another "B". Meanwhile, Mr. Lay, snr., had been running a special panic delivery service for local customers since 1962 with his car; it could be called a type of goods taxi service. The car, a Ford Zodiac, was fitted with modified suspension to enable up to 10ewt to be carried and was later changed for a minibus that was operated on a B licence.
In 1967 Mr. Benjamin Lay retired from haulage altogether and his son took over the panic delivery business. So keen was Roy Lay to buy new vehicles that he sold his modem home and a new car to raise capital and he has since been living in a very small house which also doubles as the business offices; he had managed without a car until the week of my visit which coincided with the delivery of a new one. From 1967 until October 1968 two 17ewt vans were operated on restricted B licences; the panic fleet when I arrived was 10 strong, and since then two more vans have been delivered, the plan is to have 20 on the road by the end of 1970. The majority of the vehicles are Ford Transits—two are 17cwt and three 30cwt vans, three are Transits with truck bodies, and one is an old Thames 17cwt pick-up. The remaining three vehicles are new BMC 350 FG vans a model which the manufacturer has conveniently downplated from 3.6 tons to 3.5 tons gross weight to enable advantage to be taken of the freedom from licensing.
In addition to his own vehicles, Mr. Lay finds it necessary to use sub-contractors. Two local owners of light vans are always on call and Mr. Lay also has a sub-contractor with a minivan who turns out in an emergency.
Reasonable rates
When thinking about this type of operation a number of obvious questions on rates and wages always spring to mind. Panic delivery is operated on a time or mileage basis, an hourly rate being charged for local work and a straight round trip mileage charge for other work. Mr. Lay told me his rates in confidence and I thought them very reasonable. It was not his intention, he said, to blackmail customers into paying exorbitant prices just because they were in trouble, although I gained the impression that many may well be willing to pay above the odds. Many customers only use Mr. Lay for urgent work and do not offer him their regular traffic, he accepts this and gets on with the job of providing a good service for a reasonable price.
If after making a delivery for a customer he is then asked to bring a return load back over the same route, provided this does not delay the vehicle too long this will be done for the round trip price—a financial saving for the customer. "We are proud of our record as trouble-shooters," he told me.
Any other customer wanting return-loads brought back when a vehicle is in the area is charged the one-way mileage. In general, however, return loads are not carried because of the need to have vehicles back at base.
Unlike the situation in normal transport operations when the object is generally apart from maintenance time to have vehicles out on the road in order to earn revenue, the panic business could not operate as such without at least one vehicle being always standing-by in the yard ready to go at a moment's notice.
Profit for expansion
Mr. Lay assured V me that the rates charged covered costs and left a reasonable margin of profit; he said he did not fleece his customers but charged enough to give him sufficient profit to undertake his planned expansion programme. His customers did not object to his rates and, in fact, some other hauliers for whom he had worked were happy to pay the same rates.
Drivers are paid £25 basic for a 5-21-day week on all sizes of vehicle. Saturday afternoon and Sunday work is often available and this is done by drivers on a voluntary basis.
No regular work times are laid down because of the emergency nature of most of the work and a system of semi-shifts is operated. Drivers start early if required; if a particular planned journey cannot be started till midday or even during the afternoon the driver clocks on near the time to start the run, the actual hour depending on how long the run is expected to take. Any journey started after 5 p.m. qualifies the driver for a trip-bonus based on the mileage.
Irregular hours
The wages for the drivers of Mr. Lay's other vehicles, are based on another scale; he said that these drivers are not envious because they are men who do not like the irregular hours of the panic fleet drivers.
These other vehicles consist of one van on a B licence restricted to one company; four short-wheelbase tippers and one six-wheeled tipper all on site work and sand and gravel; and two insulated vans, one on A licence and the other on B licence, used for wholesale meat deliveries.
Maintenance for both fleets is carried out in the company's own workshops. One skilled fitter is employed—he is paid a staff wage and works whatever hours are necessary. If a vehicle is broken down or in for servicing the driver assists the fitter.
The office staff consists of a girl secretary /invoice typist, a traffic clerk, and an accounts /costing clerk.
Mr. Lay has. great plans for the future. He is looking at the possibility of extending the workshops, but has also to consider the offer of a new factory site on an industrial estate.
This business has come a long way in a short time and its success could be attributed to many things, the most obvious being the undoubted enthusiasm and drive of its managing director.