"SMALLS" Examples o Scheduled Rates for Parcels
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IN last week's article in this series. I showed that a parcels carrier, operating two vehicles, one of 30-cwt. capacity and one a 2-tonner on a daily service, six days per week, over the route A to D, shown on the accompanying sketch map, will Lace a total cost of £15 Is. per week, of which £7 3s. 6d. is debited to the 30-cwt. machine and £7 17s. 641. per. week to the larger one. The latter covers 444 miles per week and the smaller vehicle 384 miles per week. Fall details of the way in which the . work is done can be _found by reference to that article.
What we have now to consider is the prospect which this operator has of earning a profit, supposing the traffic be carried at standard rates.
The question we must first answer is What are these rates? They are shown in Tables I and II. The figures set down are not taken direct from those agreed by one section of the National Conference of Express Carriers. They are, however, based on those agreed rates, but are modified to bring them up to date by adding on to the original figures a war-time increase of 20 per cent. I have also added rates for parcels weighing up to 7 lb. This is contrary to the views of this section of the Conference but is. I think, advisable.
Further, I should point out that the information given in these two, tables does not comprise a complete .schedule of rates, which cannot he given within the limits of space available, for the following reasons:—
The rates are based on the railway classification, and those classes are seven in number, ranging from 12 to 18 inclusive. A set of rates, covering all these classes, is set out in Table I. relating to one' route only, that between D and A. a. distance of 32 miles.
In Table II, a set 01 rates is scheduled for eight routes but includes those relating only to Class 15, the middle one of the seven. Clearly, if I am to set out rates for all classes, I should require space occupying seven tithes as much as that occupied-by Table II, which is, in view of the paper shortage, out of the question. I shall, of course, be pleased to give information as to particular rates, distances and classes to anyone who likes to ask for it.
These rates are subject to percentage surcharges as follow:—Baskets, unnested, 100; fittings and sbelvings wood, 100; furniture, packed, 100; gramophones, 50; hats in crates, 100; scientific instruments, packed. 100; mantelpieces, 50; luggage and personal effects, 25; electric-lamp bulbs (ctns.), 50; bedding and mattresses, 50; liquids,
acids, 25; office fittings (steel), 33; poultry (dead), 50: plants in tubs, 100; racks (boot and shoe), 100; wireless and loud-speakers, 50; machinery (hosiery and knitting), 25 ,(owners' risk); pianos, packed (trade), 100; pianos (removals) special rates.
Time recorders, 50; weighing machines, 50; typewriters (other than bulk), packed, 25 (in bulk) standard; cash registers, 50; cardboard boxes in crates, 25.
As I have already pointed out, the classification of the parcels for which rates are quoted in Table II is Class 15. Most operators who are familiar with the railway classification will be aware of the kind of goods covered thereby. The following are some of the commoner items:—Baking powder, cocoa and coffee beans, boot polishes, dubbin, furniture polishes and the like, chicory, desiccated cokernut, con. fectionery in tins or boxes, charges or refills for fire-extin,guishers, glue, insulated pressings and stampings for electrical machines, sago,, sausage meat.
There is a rebate of 3s.. 6d. per ton allowed on all goods which are brought to or collected from depots. Returned empties, if carried full, are charged at half rates, otherwise at twice the standard full rates.
The " smalls " scale is applicable to all consignments up to approximately 3 cwt., but no charge is to be less than the " smalls " scale rate. This, to those who are not experienced in this class of work, may need a little explanation. It means that a consignment weighing a little more than 3 cwt., for which the charge, according to the scale of rates, should be on the basis of the rate per ton, may actually come out at less than the charge for 3 cwt. In any such case the charge must be not lessthan that for 3 cwt.
We now have a schedule of rates and figures for the cost of operating the service. The problem now is to determine whether the service can be run at a profit. That, as I have pointed out, depends upon the number of consignments which is being carried, also, of course, upon the classification and on the destinations of each consignment. In particular, a good deal depends usion thesize of individual consignments.
For example, if it be possible to obtain a full load of parcels, not one of which was heavier than 7 lb., and if it be possible to collect and deliver all those parcels then the revenue from such a load would be in the neighbourhood of £22. Therefore, in the course of a week's journeyines, counting on loads in one direction only, the revenue would be in excess of £130 per week, which is absurd.
Concerning the make-up of a load, in respect of the variety and size of parcels, I am fortunate again in being able to quote my friend, Mr. C. S. Dunbar, who prepared data on one occasion for submission to the Regional Traffic Commissioner in support of a claim for additional vehicles. The information thus collected is shown below:— parcels in all, of which three will be under 7 lb., two between 7 lb. and 14 lb., two between 14 lb. and 1 qr., three between 1 qr. and 2 qrs., four between 2 qrs, and 1 cwt., four between 1 cwt. and 3 cwt., and two upwards of 3 cwt.
It is not, however, to be expected that a vehicle will carry full loads on every occasion. For the sake of puttingup some figures, -however, I have assumed that an average consignment will be 12 parcels (this seems abnormally low and is probably incorrect, but is the only way in which the percesitages set out in Mr. Dunbar's schedule can be agreed).
The schedule of these consignments, the weight of each, the destination and the charge according to the above schedule of rates, are set out on the accompanying waybill. According to that, the revenue from a single journey would be £1 12s, 5c1., and if the operator made six oneway journeys per week on that .basis and brought a few parcels back on the return journey, he would be making a reastinable profit on his operating costs of 47 17s, 6d. per week.
It should be recalled, however, that this operator pays a commission of 20 per cent, on parcels which he picks up from the depot of one or other of two parcels carriers operating at D and Consents to delivering parcels for these companies, for which he receives only 40 per cent, of the charge, which is equivalent to the payment of a commission of 60 per cent, His net receipts are shown in the final column of the waybill, whereby it is clear that his actual revenue is less than half what it would be if he was to receive the full agreed rates.
This tremendous loss on commissions, whilst it is, in my view, excessive in this particular case, is, nevertheless, something which the parcels carrier must keep well in mind. As it is, in this case, his revenue falls very much below what is necessary to earn a profit on his operations, and he will have to increase the number of parcels carried if the business is going to be a paying one. It should be recalled that, according to the way in which the service is worked, as described in previous articles, little is carried by way of return loads.
It may be useful if I set against the above figures those for the minimum earnings, which should accrue from the operation of the vehicle concerned. The amount of £7 17s. 6d. per week, quoted above, is the operating cost. There must be added, to-day, not less than £1 5s. per week ' for establishment costs, making a total of £9 2s. 6d. for working costs, and to that approximately £2 per week for profit. The vehicle should, therefore, earn upwards . of £11 per week, which is very nearly .02 per day.
The amount just quoted in respect of establishment costs may be sufficient for this operator, having in mind the conditions under which be is working. It must not be taken as %a reasonable amount in connection with the business of carrying " smalls," for the establishment costs of concerns in that department of haulage involve overheads which are two to three times greater than those of the ordinary haulier. S.T.R.