How THE NATIONAL SUGAF EET RATES WERE ASSESSED
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IN last week's issue, whilst I gave the figures for cost of 'operation and the time and mileage charges upon which
the proposed national schedule of beet-haulage rates were based, and disclosed how those costs were assessed, I did not tell how the actual rates were calculated from the time and mileage charges. This is, of course,, important, if a full understanding of the position is to be reached. Moreover, it is necessary to indicate, as I pointed out in the previous article, that there is little or no advantage from the point of view, of costs, to he derived from the use of larger vehicles.
I should recall that the time and mileage rates, which appeared in the previous article, as applied to a vehicle coming within the 30 m.p.h. class and carrying 5 tons of beet, were 51d. per mile and 6s. 8d. per hour. It is important to note that these two rates are to be taken in conjunction and not separately.
• Fixing. the Maximum Number of Loads •
It was agreed that the maximum number of loads which could be taken into re factory or to railhead over the shortest of distances, is three. The fact that some hauliers can ...recall occasions on which they •have delivered four loads in a day, does not alter the accuracy of this state-, ment. They should, at the same time, recall other occasions when they have not been able to deliver three loads in a day, to remember that there are times when, due to weather and other circumstances, their vehicles must stand idle. •,
Furthermove, they must bear in mind that, for the greater part of the sugar-beet campaign, certainly during November and December, when the maximum tonnage is hauled, the black-out is in operation, thus reducing the number of hour's per day which the vehicles can work and that irrespective ot any legal limitation of those times.
On the basis of three loads in nine hours, that is to say, ode load per three hours, and taking a three-mile lead, which involves, of course, six miles of running, the rate is made up as follows:—Three hours at 6s. 8d. is £1, and six miles at 51d. per mile is 2s. 1,00. The total is £,1 2s, 100. for a 5-ton load, which is a little more than 4s. 6d. per ton, the minimum rate in the original schedule.
• Combining Short and Long Hauls •
Over long leads, the number of loads per day differs, naturally, and if a haulier be loading from one particular point to the factory all the time, there may be some loss due to the fact that he cannot take, say, more than two loads per day, yet could conveniently do two' and a half loads. In view or the fact, however, that most hauliers engaged in this traffic can work in a short haul and a long haul together, it was decided that there was no need to consider this possible loss of time.
It was agreed that the calculation of rates for leads in excess of the above minimum should be made on the assumption that there is no excessive loss of time. That calculation was made in this way. For each additional mile lead the vehicle covers two miles. Assuming an average speed of 24 m.p.h., it takes live minutes to cover those two
miles. The time charge for five‘minutes at Gs. S.d. perrhour is 60. To that must be added the mileage charge, the two Miles at 51d. per mile, -totalling 110, The total charge per additional mile lead per load is, thus, 1s. 6d. It means that the charge per ton per additional mile lead .might be 13d.
It was, however, deemed inadvisable to include odd halfpennies in any schedule of rates, and to avoid that, the rate addition is made alternatively as 4d. per ton and 3c1,, per ton. In that way the rate, proceeds: minimum, up to three miles, 4s. 6d., for over three and up to four, 45, 10d., an addition of 4d., over four and up to five, 5s. ld., an addition of 3d., and so on.
• When the Lead Exceeds 10 Miles • When the lead is in excess of 10 miles it is admitted that a higher average speed than 24 m.p.h. becomes, as a rule, possible. There is also, on these longer runs, a slight saving •in petrol consumption. Acknowledgment of that fact is made in the schedule by reducing the charge per ton per additional mile lead to 3d., when the lead exceeds 10 miles,
By that process the schedule which is set out in Table _I was reached. In the meantime, I had, for my own part, checked the figures on the assumption that there might be a reasonable number of vehicles carrying from 8-10-ton loads. I assumed that the likeliest vehicle was an articulated machine and I worked out costs and rates on the assumption that such a vehicle was used, bearing in mind, of course, that its maximum legal speed was 20 m.p.h. At the same time, because I am aware that not all such vehicles operate within the legal limit of speed, I assume an average speed of 20 m.p.h.
The operating costs and the time and mileage charges of a vehicle of this type are those which are set out in Table II. I assume that I need not examine these figures in detail. They are arrived at in the same way as those which were quoted in the previous article, in reference to the vehicle carrying 5-ton loads.
The same proviso as made in that previous calculation is also made here,-that some operators can obtain their supplies at wholesale rates, whilst others must pay the retail prices. The ultimate figure for cost per mile is the mean of two extremes. The important thing to note is that the mileage chart is Rd. and the time charge Os. 3d. per hour.
I assumed that the time needed to load 10 tons was two hours, and that one-and-a-half hours were necessary to unload. I also assumed the average delay at the factory to be one hour. That "gives a total terminal delay • of one-and-a-half hours. The time to run 38 miles (10 miles in each direction). I took as being two hours. That gives me a total time for the journey of six-and-a-half hours, and, on the basis of a time charge of 9s. 3d. per hour, that is equivalent to £3 Os. 2d.
• Arriving at Per Load and Per Ton Rates •
To this must, of course, be added the mileage charge for 38 miles at 81d. per mile, giving £1 Os. The total rate per load is, therefore, £4 6s. 2d., and, on the basis of the 10-ton load, that is 8s. 8d. per ton. It is interesting to note that this compares with the figure of 8s. 9d. per ton for a 19-mile lead as indicated in the original schedule.
For each additional mile of lead there will be a total of six minutes in time two miles at 20 m.p.h.) and that, at O. 3d. per hour, is approximately 111d. Add-the mileage charge, two miles at 80.-1s. 50.-and the total is 25. 5d., which is, as near as makes no matter, 3d. per ton per additional mile lead.
That means to say the advantage gained by carrying a 10-ton load instead of a 5-ton load is equivalent only to 1d. per ton all down the range of leads from 19 miles onwards. I did not consider it necessary to provide for the use of these large vehicles over, the shorter distances.
• When the original schedule was submitted to the National farmers' Union, protests were made that the rates were much higher than expected. When the figures for cost were gone into in detail it was found that, whilst there was not actual agreement item by item, yet on the total there was almost complete accord, a circumstance which justified the proposed rates.
However, the N.F.U. pressed for some concessions on these rates. It justified that pressure, largely. I am afraid, because--telling us what we knew-it said it was quite sure that it would be able to persuade individual hauliers to cut them, and it was just as keen as we were to set up a national schedule which would he likely to have adherence on all sides and by both parties.
• A Concession Agreed Upon • Mr. R. W. Cewill, of A.R.O., and 1, gave a good deal of consideration to this matter, and eventually agreed to those reductions which are evident by comparing the original schedule as set out in Table I with the national one published in the previous article. The concession amounted to 3d. per ton up to and including six miles, 6d. per ton up to 15 miles, and 9d. per ton for leads in excess of 15 miles.
In addition, it was agreed that where the farn-wr gave satisfactory assistance with the loading of the vehicle, a further concession of 2d. per ton should be given for any lead. This means that over all mileages in excess of 15, the total concession amounted to 11d, per ton.
These concessions were reluctantly given, having in mind the fact that we felt the original schedule was justified up to the hilt. Nevertheless, they were made in the hope that we should be able to reconcile all parties to the deal, and persuade the farmers to accept, and hauliers to stand by, the national scheme.
It has since been represented to me that there are certain operators who carry beet in articulated vehicles, or in tractors and trailers in loads of 15 tons. Personally, I' am of opinion that the number thus engaged is so few that it is unwise to attempt to make special provision for them.
• Profit when Big Outfits are Used • I have, howeVer, calculated what the rates might beto show a profit on the operation of such vehicles. Table HI shows the figures for costs and the time and mileage charges, and in Table IV are given, in three columns, first the national rate, then the rates which I consider essential in the case of vehicles carrying 10-ton loads, and, finally, the rates for 15-ton loads.
I would suggest that where 15-ton loads are carried, the operator may well carry them at the rates quoted in the third column of Table IV. It can be done without departing from the spirit or letter of the national schedule, because it can be effected under the clause in the proposed agreement. That clause, which I mentioned in the previous article, provided that, in the event of being any special circumstances justifying the modification of the rate, the haulier may, by agreement with his customer, grant him concessions in accordance with the special considerations. S.T.R.