Opinions and Queries
Page 58
If you've noticed an error in this article please click here to report it so we can fix it.
How to Clean Up Haulage
VVHILST it is refreshing to read from time to time that there are still those who believe in the significance of codes of conduct, I regret that I cannot share their optimism.
The road haulage industry has been talking of codes and rate schedules for years: nevertheless, having obtained the denationalization it demanded, it is now engaged in a process of self-denigration which will cripple it in less time than most people realize.
If present-day long-distance rates are economic, then the inference must be that the former rates, and hence profits, were unduly high. lf, on the other hand, the new rates arc not economic, standards of service and of safety must suffer, and the stability of the industry will be jeopardized. It is, therefore, vital that the industry should show what rates are economic, having regard to service, safety of vehicles and conditions of employment, and find a way of maintaining them.
The Road Haulage Association could help by making membership exclusive and an indication of respectability. This could be done by making it conditional upon the acceptance of sanctions, such as expulsion, for all cases of misconduct.
The only real cure, however, lies in stopping the abuse of statutory regulations, in enforcing higher standards of vehicle maintenance, and in curtailing the indiscriminate growth of the clearing-house section of the industry. These are all matters for the Authorities, to whom the following suggestions are made:—
I. All Licence applications OncIuding those for renewals), should involve full inspections by the Ministry of Transport of all the applicants' vehicles, their statutory records arid their rate schedules..
This would not entail staff increases out of proportion to the benefits obtained, as such inspections would eliminate the need for itinerant spot-checkers.
2. Clearing houses and long-distance operators should have to obtain an operating licence wherever they wish to set up a place of business. This would subject their activities to the same rules as those appliec . to vehicles and reduce the great harm those concerns are doing to the rate structure.
3. All the existing regulations should be more vigorously enforced. Thus licence and drivers'-hours offences should be made less remunerative, whilst badly maintained vehicles should be prohibited. , Unfortunately, the industry has proved incapable of keeping its own house in order, and in an attempt to provoke, I have suggested one or two ways in which sanity could be imposed from without.
Bristol, 5. BRIAN H. Fisui,
Managing Director,' Joseph Fish and Sons, Ltd.
Who is Responsible for Rate-cutting?
A S a haulage contractor in a comparatively small way, I -r-4 feel compelled to reply to certain criticisms and comments which have from time to time appeared in your valuable journal.
One of your regular contributors writes a weekly article on haulage rates in general and how to run a vehicle profitably. My own experience in this connection is that, n24 provided one can obtain haulage work direct from a manufacturer or other customer, it is often possible to obtain fair rates.
Much of the work which should be available at a good return is not, however, offered direct to the haulier but to clearing houses. These usually cannot provide vehicles of their own and often offer it out at a figure which does not cover the cost of operation. In addition to this the usual commission of 40 per cent. is deducted.
Through a local clearing house I was recently offered a load of bricks. The delivery point involved a journey of over 100 miles, as well as a return journey with little chance of a load. The rate was 52s. 6d. per 1,000, less the 10 per cent. In my own case, carrying a load of 2,000 bricks this would have left me with £4 19s. 9d. for the 200 miles, which works out at less than 6d. per mile. The figure given by your expert for the cost of running a 5-ton vehicle is 1s. 4d.. per mile. How, therefore, is it possible for a profit to be made at such a rate?
On another occasion I took a load of six tons of basic slag a distance of 35 miles. To get the load, however, I had to travel 15 miles to the works, and on arrival joined the end of a queue. My vehicle was loaded after about four hours and the rest of the day was spent on delivering to a farm, where I had to do the off-loading. There was no chance of a, return load. The total distance was 70 miles, the time worked was 94 hours and the price 15s. per ton.
Some of your: correspondents have stated recently that the small operator is to blame for undercutting legitimate rates, but I would go so far as to say that the real culprits are the people who obtain the work with the sole intention of farming it out. When the small operator gets his cheque he oftens finds he has been taken for a ride either by a bigger competitor or a clearing house. These people nearly always accept work at a figure which they know will not enable them to operate their own vehicles at a profit, but they are certain of theirs for they may have to cover little more than the cost of phone calls and, perhaps, a nominal rent for an office,.
Even some of the larger and " better-class " clearing houses are little better than the smaller ones. If they offer any work at all it may be only because they have no vehicles of their own available or for the reason that the consignment is so small that they do not want to bother with such work.
As to myself, I have to engage in other business, as well as haulage, to make a profit. At present the haulage side would hardly pay its way.
Recently, I was talking to a driver of a large and wellknown concern in my neighbourhood who told me that he often delivered to the Midlands, returned the same day, and was frequently called upon to leave again in less than eight hours to deliver another load. When I told him that he was entitled to 11 hours rest before the next trip he replied that he knew that, but that if he refused he would be paid off.
I have also met drivers who say that they are not being paid the rate for the job. A few have told me that they do not get paid for any overtime they may be called upon to do. That I can well believe to be the case, if their employers are working for rates similar to those that I have mentioned.
Pontypool, Mon. A. BEVAN.