Arriving at Stabilized ates for Sand Haulage
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A Discussion on Some of the Cardinal Points in the Schedules of Costings Which Have Been issued by the Ballast, Sand, and Allied Trades Association
Solving the Problems of the Carrier
THE actual figures in the "Schedules of Vehicle Castings and Haulage Rates for the Ballast and Sand Industry" with which I commenced to deal in my previous article are set out in three schedules.
In " A " are actual standing charges and running costs, and in " B " these costings are scheduled and applied to different types of vehicle with examples of short haul, average haul and long haul, whilst " C " is a ready reckoner giving figures for quotations for haulage over distances up to 34) miles, either "road miles" or radial or " crow-fly " miles.
I should explain that the latter are for the purpose of quick map reading. They have been worked out on the basis of nine road miles being the equivalent of seven " crow-fly " miles.
Dealing first with Schedule A. Seven different types of vehicle are listed. To simplify reference in subsequent schedules these are numbered one to seven. Three petrol vehicles of nominal load capacities of 2-3 tons, 5-6 tons, 8-9 tons, are taken. There are also two 5-6-ton and 8-9-ton oil-engined vehicles and two steam vehicles of the same capacities.
Items Included in Standing Charges.
The standing charges include the following items, set out on a yearly basis :—Depreciation, interest on capital, tax, insurance, wages. The last-named includes, as undoubtedly it. should, provision for Workmen's Compensation, National Health and unemployment insurances.
Regular readers of these articles, and those who
customarily use The Commercial Motor Tables of Operating Costs, will note two divergencies between the
two systems. First, depreciation is included as a standing charge in this publication, whereas in the Tables of Operating Costs it is treated as a running cost. Secondly, there is no provision for garage rent._ .. That was the criticism which I mentioned last week D24
as having been made in an article of mine in the issue of The Commercial Motor dated June 19 and leading to misunderstanding. The criticism was completely answered by Mr. E. V.. Smith, the secretary of the Ballast, Sand and Allied Trades Association, in pointing out that it is the custom to include garage rent in • the establishment charges for which, as will shortly appear, reasonable provision is made.
Having arrived at a total of standing charges per annum, this is divided over the number of actual working days in a year, namely, 268 for internal-combustionengined vehicles and 260 for steam vehicles. The result is a standing charge per working day. For example, in one case the total of the standing charges as described above is 2526 per annum, and if that be divided by 268 the result, 21 19s. 3d., is the standing' charge per day.
Where the Association Can Do Good.
If the Association, by its efforts, could do no more than persuade every owner of a 5-6-ton petrol vehicle, which is the type to which that figure refers, that it costs its operator in standing charges alone practically £2 per day, with no provision whatever for moving the • vehicle, or for petrol, oil, tyres and maintenance, let alone establishment costs and profit, it will have done some good.
Having arrived at this figure for standing charges per day, the next step is to provide for establishment costs. These the Association estimates at 20 per cent. of the standing charges. I have compared these figures with my own, and, bearing in mind that these establishment costs must include provision for garage rent, there is remarkably little difference between my figures and those of the Association.
Adding the standing charges to the establishment figures gives a total daily charge, and from that a charge per hour for an 8i-hour day, amounting to 5s. 6d. in the case of the 5-6-ton petrol lorry to which I have already referred.
A Successful Rates Stabilization Basis. ,
Next come the running costs. These are precisely the same as those in The Commercial Motor Tables of Operating Costs, except that, of course, the item " Depreciation " does not appear. The net result of the figures in Schedule A is that the reader is presented with two figures, the total cost per hour, plus the total cost per mile. In other words, the time and mileage figufes which I myself have insisted must be the basis of any successful scheme for rates stabilization.
It would be unfair for me to quote many of the figures from this publication. It is distinctly indicated on the cover that it is for the use only of members of the Association. As to that I shall have a word to say later.
I have, however, compared them with the corresponding figures in The Commercial Motor Tables of Operating Costs. With the exception of the oil-engined vehicles there is practically no difference. The maximum divergence, as between one and the other. i is slightly less than one-tenth of a penny, and. that is accounted for by a slight difference in the assumed prices of fuel and oil. The difference in the case of the
oil-engined vehicles amounts to one half-penny in each case. It is accounted for by an increased charge for maintenance.
This is precisely what I should have expected, namely, that, in the hands of operators in this branch of haulage, maintenance of oil engines should be somewhat more costly than the average, and it is average figures which are set out in The Commercial Motor Tables.
How to Calculate Proper Charges.
So far, then, so good. No fault whatever can be found with Schedule A, which sets out the operating costs of motor vehicles employed in the haulage of sand and ballast. There is actually sufficient information in this schedule to enable any operator with an aptitude for figures to calculate his proper charges, without reference to the further Schedules B and C.
In the case, for example, of the 5-6-tonner, which costs 5s. 6d. per hour and for which the running costs are set out• as being 41d. per mile, the operator has the essential time and mileage figures which can be made to serve as a basis for calculation of the cost of any job.
Assume a 30-mile lead. The total time for a round journey, allowing three-quarters of an hour for loading and unloading, and assuming an average travelling speed of 16 m.p.h., is 41 hours. The cost is thus 44 hours at Ss. 6d., which is 24s. 9d., plus 60 miles at 41c1., which is 23s.9d.—total, £2 8s. 6d. The actual cost per yard is 9s. 8d. Add 15 per cent. and the price to charge is seen to be 11s. 11d., or the charge for the complete journey should be £2 15s. 71d.
So far as loading conditions dre concerned, minimum and maximum rates are giVen. The minimum rates are for good loading conditions and assume six minutes for 2-3-ton vehicles and 10 minutes for 5-6-ton vehicles and 8-9-ton vehicles. The maximum rates are for bad loading conditions, say 20 minutes for 2-3-ton vehicles, 30 minutes for 5-6-ton vehicles, and 35 minutes for 8-9-ton vehicles.
Features of a Vehicle Costing Schedule.
There are seven of these Schedules B, corresponding to the seven different types of vehicle enumerated in Schedule A. In each of them three lengths of haul are assumed, a short haul (two miles), an average haul (eight miles), and a long haul (30 miles). For each distance, minimum and maximum figures for good and bad loading conditions are given.
The rest may be judged by the portion of Schedule 122, which is reproduced herewith. First of all, essential data relating to the type of vehicle axe set out at the head of the schedule ; the rest of it is in three parts. The first shows how the daily mileage is calculated ; the Second the cost per yard and how that cost is reached, whilst the third is an analysis, the most important part of which, perhaps, is that which shows the " total cost to load and unload and run the first Mile per cubic yd." Subsequently, another ffgrure is given for the remaining mileage per cubic yd.
With Schedule C I need not deal. It gives actual rates per trip for the seven different types of vehicle.
I understand that applications for copies by nonmembers will be considered sympathetically. S.T.R.