Costing Solo and Trailer Working
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FLUCTUATION in loadings is always a major problem for transport operators. Except possibly in highly specialized ancillary working—when not only the type of traffic is standardized. but also the quantity in many instances— for most operators the best that can be achieved in the selection of a vehicle is an economic compromise. To some extent large fleet users have the advantage in this respect that a range of sizes of vehicle can be operated to meet most occasions. Where small fleets are concerned, however, the advantages to be gained in standardization and resulting flexibility by the adoption of one type of vehicle may more than outweigh the saving to be obtained by the supply of a vehicle to fit each and every load.
To meet the demand of fluctuations in available traffic established operators will obviously have decided from past experience what is the average size of vehicle suitable for their kind of work. From this basis it would then .be possible to decide. to what extent it would be economic to make some provision to carry the additional tonnages as and when available, without having to resort to hiring other vehicles. The two main factors to be considered in this respect would be the extent to which the. additional tonnage exceeded the average load and the frequency with which this occurred.
Three alternatives would then be available to meet such a situation. If all vehicles in the fleet had a carrying capacity slightly above the average loading, the additional fleet carrying capacity would be substantial without undue addition to the operating cost of each vehicle. A second alternative would be to provide a spare vehicle (or vehicles according to the size of the fleet), whilst limiting the size of vehicle appropriate to the average load. Some difficulty could arise here, however, regarding the availability of spare drivers to man these vehicles. In addition, in the majority of cases, it would not he practicable repeatedly to de-licence such spare vehicles, so that a substantial proportion of standing cost would have to be borne whether the vehicle was used or not:
ANOTHER method employed to meet seasonal fluctuations is the use of drawbar trailers. The advantage offered by this type of operation is a substantial increase in carrying capacity per vehicle with only a relatively modest increase to the total operating cost of both vehicle and trailer. When not in use the standing costs which still have to be met arc only a fraction of those which would correspondingly apply where a spare vehicle was kept for the same purpose.
The provision of the necessary statutory attendant should not present the same difficulty as would apply to the engageE32 ment of a driver for a spare vehicle. It must be admitted, however, that there are some types of operation where trailer working would not be suitable, due to limited access or for other reasons.
Before giving an example of the relative operating costs obtained from the use of a combination of heavy goods vehicles of various carrying capacities with or without an 8-ton drawbar trailer, it will be useful to state briefly the legal position relative to maximum load and dimensions when engaged in this type of operation. The maximum gross laden weight for the several vehicles or outfits detailed here are as follows:Four-wheeler 14 tons; six-wheeler 20 tons; eight-wheeler 24 tons and trailer 14 tons, A vehicle and trailer together, when fitted with power-assisted brakes, must not exceed 32 tons.
Rigid goods vehicles, whether foursixor eight-wheelers must not exceed 30 ft. in length whilst the trailer is limited to 22 ft. As all the vehicles detailed here have an unladen weight exceeding 4 tons they could be up to 8 ft. in width.
The first of the solo vehicles to be dealt with will be the 9-ton four-wheeler in the quality-produced class. With an unladen weight of around 4 tons 10 cwt., the annual licence duty—when operating solo—would be 160, the equivalent of £1 4s. Od. a week, based on a 50-week year. This allows for two weeks per annum when the vehicle may be off the road for driver's holiday or major overhaul, and the remaining standing costs are similarly calculated.
ASSUMING the vehicle is operated in Grade I areas as determined by the Road Haulage Wages Regulations R.H.(70), driver's wages for a basic week of 44 hours will amount to £10 2s. 5d. This includes additions for National Health and voluntary employers' liability insurance contributions, together with an allowance for two weeks' holiday with pay. It is appreciated that in specific instances the actual amount of overtime work could be included in this item of wages. But when dealing with average figures, no corresponding average overtime relative to mileage run can he formulated, for which reason the amount relative to a standard basic week is given.
Rent and rates in respect of garaging the vehicle are assessed at 12s. 3d., whilst insurance is reckoned to add £1 9s. 3d. a week. This is based on an annual premium of £73 4s. Od., inclusive of the increases in motor vehicle insurance recently announced.
It will be assumed that the initial outlay on this particular type of vehicle will be £2,890. Allowing for a nominal interest rate of 3 per cent. on this outlay, the resulting interest charge would be the equivalent of £1 14s. 8d. The total for these five items of standing cost is £15 2s. 7d. It will be assumed throughout that all vehicles average 800 miles per week, so that the standing cost per mile in this instance would be 4.54d. Similarly it will be assumed that fuel is purchased in bulk at 3s. 104d. per gal. and, with this four-wheeler averaging 12 m.p.g., the fuel cost per mile would amount to 3.90d. Lubricants are reckoned to cost 0.26d. and tyres 1.82d. This s on the assumption that a set costs around £300, with an tnticipated mileage life of 40,000.
Maintenance is assessed at 2.46d. per mile, inclusive of tervicing and washing, whilst depreciation adds 2.11d. per mile. Co obtain this latter figure the cost of the original set of tyres s deducted from the price of the vehicle, together with an tllowance for the ultimate residual value, leaving a balance to ,e written off of £2,637. A vehicle life of 300,000 miles is tssumed. The total running cost per mile is therefore 10.55d., tiving a total operating cost of 15.09d. per mile.
WHEN maintaining an average of 800 miles a week the total running cost each week will be £35 3s. 4d., and the total iperating cost £50 5s, lid, a week.
The six-wheeler will carry a load of 13 tons and costs 3,840. Its unladen weight of 6 tons 15 cwt. incurs an annual icence duty of £105, the equivalent of £2 2s. Od. a week. Wages till now be payable in the next higher category and amount o £10 9s. Od. a week, inclusive of similar additions and llowances as made in respect of the four-wheeler.
Rent and rates will be reckoned slightly higher at 12s. 10d. week, but because of both the increased initial outlay and dditional carrying capacity the weekly cost of insurance will e increased to £2 Is. 5d. on the basis of an annual premium f £103 16s. Od. Weekly interest charges will also be higher ad amount to £2 6s. Id. Total standing costs each week are ms £17 Ils. 6d., the equivalent of 5.27d. per mile.
With a slightly increased rate of consumption, namely 10 t.p.g., fuel cost per mile amounts to 4.68d. Lubricants are !ckoned to cost 0.27d. and tyres 2.12d. per mile. This increase due to the higher cost per set for a six-wheeler (£350), lthough the anticipated mileage life remains the same at 40,000. laintenance is assessed at 2.80d. and depreciation at 2.44d. per tile, using the same procedure as before.
Total running costs for this six-wheeler are therefore 12.31d. ad the total operating costs 17.58d. per mile. The corresonding running costs each week are £41 Os_ 8d. and the total perating cost per week £58 12s. ld., still assuming an average 'eekly mileage of 800.
The tight-wheeler is reckoned to cost £4,075 and can carry a lad of 16 tons. With an unladen weight of 7 tons 10 cwt., the inual licence duty would be £120, giving an equivalent weekly ist of £2 8s. Wages will be in the next higher category and fount to 110 16s. 10d. a week, whilst rent and rates add ls. 4d. a week.
Based on the same scale of rates as previously employed, the 3rresponding insurance premium for us eight-wheeler will be 1124 per annum, te equivalent of 12 954 7d. a week. ecause of the increased initial outlay, iterest charges will also be higher at 1 8s. 10d. a week. The standing cost is ierefore £18 16s. 7d. a week or 5.65d. .tr mile.
With a rate of fuel consumption of m.p.g., fuel cost per mile will amount 5.19d. whilst lubricants are assessed at 28d. per mile. A set of tyres for this ulti-wheeler are reckoned to cost 1425. ving a tyre cost per mile of 2.54d. still isuming a mileage life of 40,000. Mainnance is assessed at 3.01d. and depreciion at 236d. per mile. This gives a inning cost of 13.58d. per mile or 15 5s. 4d. a week. Correspondingly the tal operating cost is 19.23d. per mile id £64 Is. Ild, a week.
To avoid undue complication it will be ;sumed that the cost of operating the ailer will be the same whether the four-, lcor eight-wheeler is coupled to it. As 1 these vehicles -have an unladen weight over 4 tons, the additional annual :ence duty payable in respect of the trailer will be £20 or the equivalent of 8s. a week. Incidentally it is assumed in all cases that the trailer would be licensed for use throughout the year rather than intermittently, since the incentive to do this would be substantially less than would be the case when de-licensing a spare vehicle.
Making similar allowances as before, the total cost of the attendant's wages is reckoned at £9 9s. id. But some addition will also have to he made to the driver's wages due to the fact that the statutory rates will fall in a higher category whenever his vehicle is towing a trailer. The actual difference will vary according tu the type of solo vehicle employed, and in these particular examples would average 14s. 4d, a week, giving a total of .E10 3s. 5d. attributable to the cost of wages when a drawbar trailer is in use. No attempt has been made to adjust this addition relative to spasmodic working, so that vehicle and trailer will be both licensed and manned for use throughout the year.
GARAGING the trailer is reckoned to add 9s. 9d, a week and insurance 5s., based on an annual premium of £12 12s. There can be wide variations in the cost of drawbar. trailers relative to individual specification. This platformed version, capable of carrying a load of 8 tons, is estimated to cost £920 with a resulting interest charge of 1 Is. 1 d. per week. The total for these the items of standing costs is therefore £11 17s. 3d. with a corresponding cost per mile of 3.56d., at 800 miles a week.
In order to obtain the additional fuel cost when operating with a trailer, it is necessary to average the difference in the rate of consumption as compared with solo operation. It will be assumed in all three cases that there is a difference of 2.50 m.p.g. or 1.81d. per mile. Lubricants are reckoned at 0.03d. per mile and tyres 0.99d. per mile. Maintenance is reckoned to cost 0.50d. per mile, as is depreciation. This gives a total running cost of 3.83d. per mile and £12 15s. 4d. a week. Correspondingly the total operating cost is 7.39d. per mile and £24 12s. 7d. a week.
When running solo the respective operating costs per mile are: 9 tonner, 15.09d.: 13-tonner, 17.58d.; 16-tonner, 19.23d. Coupled to the trailer the corresponding figures are 22.48d.: 24.97d.; 26.62d.; with respective loading capacities of 17 tons. 21 tons and 24 tons. As is to be expected, the lowest cost per ton-mile-1.11d.-is obtained when operating the eight-wheeler coupled to the trailer, compared with 1.20d. returned by the eight-wheeler operating solo.
Other costs per ton-mile are as follows:six-wheeler (operating solo) 1.35d. and with trailer 1.19d. The corresponding figures for the 9-ton four-wheeler are:solo 1.68d. or 1.32(1. with the trailer. The extent to which underloading would increase actual costs could only be determined relative to individual circumstances. S.B.