THE BATTLE AGAI NST RISING COSTS " E DUCATION of transport
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users in the true costs of the service they buy must be continuous if the haulier is to have any future as a business man. His battle is against continually rising costs in a climate of apathy or hostility on the part of his customers."
This advice was given to members of the Exeter, North Devon, Honiton and Torbay sub-areas of the Road Haulage Association last week in the course of a talk prepared by Mr. A. E. SherlockMesher, the Association's Press officer, and, in his unavoidable absence, presented. by Mr. Anthony Norman, the Association's information officer.
The main part of the paper consisted of an analysis of the various items of costs which the haulier had to meet and to recoup from the rates he charged. The author used figures from The Commercial Motor Tables of Operating Costs in preparing his paper.
" The commercial . vehicle operator faces more imponderables in costs than probably any other trader ", said Mr. Sherlock-Mesher, 'and his calculations of costs and rates must therefore include a good deal of intelligent guesswork."
The section of the paper dealing with insurance included two quotations obtained from the Association's insurance panel for two A-licensed vehicles based in West Country towns.
One was an eight-wheeled tipper with
a carrying capacity of about 15 tons and valued at £4,250. It was assumed to be based in a Cornish town, that the operator had a good claims record and that the driver was over 25 and had more than two years' experience. The rate quoted for one vehicle was £208 a year. With a fleet of 10 or more vehicles and a good claims record, the operator could expect a discount of 10-15 per cent, making the cost of insurance per vehicle -something between €171 and 1187. If his claims experience was only moderate he would get no discount on the fleet. If his record was had the premium could be doubled and he might be asked to meet anything up to £150 for accidental damage on any claim.
The heavy excesses now being imposed by insurance companies made the forecasting of insurance costs extremely difficult Two or three accidents in a year could well increase the cost by £300 or more and play havoc with calculations of operating costs and rates. It was no economy to cut down on cover and deal with a cheap-jack company. The best cover, such as the Association's insurance panel could afford, was cheapest in the long run.
The. costs quoted in this paper, Mr. Sherlock-Mesher continued, "although high enough in all conscience will be even greater a year from today, you can be sure".