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Over 50m. Tons to Carry

THE successful growth of many haulage companies has often been initially dependent upon securing the regular traffic of a stable industry. Even if only modest tonnages were offered at rates which did not afford as high a return as other loads, such traffic provided the basis of ultimate expansion and proved invaluable during off-peak periods in other local trades.

In the past, stability in trade and industry has often implied an element of consolidation, if not retrenchment. What traffic was available flowed along regular routes and was largely allocated to established operators. The substantial post-war increase in national productivity, however, has changed the volume, pattern and tempo of distribution, with repercussions on the demands for transport services.

Oil is an obvious example of an industry making ever greater demands on road transport (under whatever carrier's licence may be currently appropriate) to distribute the products of Britain's new refineries. Similarly, visible evidence is readily available of the big tonnages which now require to be moved from immense iron and steel plants which have been built in recent years.

Not so obvious, but no less significant to transport operators, is the continued growth in Britain's largest industry— agriculture. Because production is spread over so wide an area, the extent of either successive increases or total tonnages are seldom apparent. Recent statistics, however, correct any under-estimation there may be of the traffic potential of farming.

Barley and Wheat

The Annual Review and Determination of Guarantees, 1959. issued by the Ministry of Agriculture, forecasts that the current net output will be 61 per sent. above pre-war. Crop production of barley, for example, averaged 765,000 tons per year pre-war, rising to 1,963,000 tons in 1946-47 and 3,173,000 in 1958-59. Corresponding tonnage for wheat is 1,651,000, 1,967,000 and 2,710,000, respectively.

Most other crops, as well as livestock products, have similarly increased, though the quantity of potatoes has understandably decreased after exceptional war-time consumption. More recently, official reports on this year's harvest forecast yields to be above average-4 to 8 per cent. for some cereals.

Though the exact proportion of crop production tonnage and livestock products which require moving by road transport may not be obtainable, it has been estimated that the agricultural industry provides over 50m. tons of potential traffic. Precise calculation is made difficult, however, because some produce may be consumed at source and so not require transporting, whilst substantial additions must be made for deliveries to farms of such commodities as seed, fertilizer and the many other requisites that modern mechanized farming demands.

Because agriculture demands flexibility in the provision of transport services, road haulage is ideally suited to its needs, a24 The ability to guarantee—and maintain—delivery on time is obviously vital when handling perishable traffics. So, too, is the avoidance of double handling, particularly, for example, when dealing with horticulture or livestock.

Though inherently suited to providing such a service, road transport must be highly organized if the required standard is to be met. For few other traffics is it so imperative that both haulier and driver should be familiar with their farmercustomer's work if loads are to be correctly handled. Such experience is often gained only after years of specialization in this type of work, coupled in many instances with residence in a rural area,

Unique Competition

To offset the vast potential traffic farming has to offer to road transport, the agricultural haulier has to meet unique competition for his specialized services. Whilst in most other • industries some proportion of traffic is carried in C-licence vehicles, this trend receives statutory encouragement where agricultural traffics are concerned. Under Section 1(5)(C) of the Road and Rail Traffic Act, 1933, a farmer may carry goods for another farmer in the same locality without its being deemed for hire or reward.

Another factor peculiar to farming affects the division of available traffic. This results from the large growth in number, size and range of agricultural societies, whose members— farmers, growers or other producers—have associated to obtain mutual trading benefits. There are at present around 244 such societies grouped under requirement, marketing and service, with a membership exceeding 230,000 and annual turnover of £129m.

Many of these societies operate their own fleets, varying in size. The transport activities of one such society—Eastern Counties Farmers, Ltd.—is described on pages 146-149. Even within agriculture it is claimed that by further specialization on one group of products maximum efficiency can be achieved. Correspondingly their respective fleets of commercial vehicles can be selected, located and operated for a specific traffic and purpose.

• Under whatever carrier's licence agricultural vehicles may run, many common factors apply. With most traffics, problems arising from great surges of traffic occurring at seed and harvest time will have to be surmounted, whilst corresponding peaks will be occasioned for the livestock carrier by sales and shows.

In other industries, such traffic peaks might be met by employing vehicles of ample capacity and above the strictly economic size for average flows of traffic. Alternatively, draw-bar trailers may be used part-time, or, double-shift working introduced. In agriculture, however, these methods will often prove impracticable. Size of vehicle may well be determined by the type of farm from which collections are made or the capacity of unmade roads which have to be used to effect delivery. For the same reasons, trailers have limited application on work, although they are used on trunk distribution and enance of stocks at branch or buffer depots.

obvious reasons, much of the transport required by ilture must be supplied in daylight hours and so limiting mount of work which might otherwise be done. The day time of opening of markets may also restrict the full syment of vehicles. Because of statutory requirements ye to drivers' periods of rest, the operation of a vehicle

e day prior to an early market may also be curtailed. is also unfortunate that seedtime, harvesting and subnt marketing are basically and successively inimical to :nt transport operation. On these occasions, despite lete co-operation between farmer and haulier, physical !tit) ns of approach roads, handling methods and storage ;ity are only too often the factors which determine maxiintake per day, rather than a vehicle's capacity or the :ncy of its operator.

an endeavour to reduce or eliminate the delays which can at these peak periods, bulk handling of grain has led increasing attention in recent years. The prime n for this trend, however, has been the great increase number of combine harvesters employed on farms. In there were 22,000 in use, whilst it is now estimated that 0 are operated. The vast majority are of tanker type, sitating the initial conveyance of grain in bulk, and so rig the need for delivery to continue throughout to its destination in bulk if at all possible.

Determining the Ideal ich useful work has been done both by Governmentored bodies and independent committees of interested !s to encourage and guide the development of bulk Ling of grain. Their findings, however, also emphasized Acuities confronting the transport operator in endeavour3 determine the ideal vehicle for this traffic, both under tit conditions and during the probable life of the vehicle, spite some modernization, many of the premises, and approaches, to which collection or delivery of agricultural :s is made are old and hamper efficient handling methods. recently, the wide variation in such premises resulted gatform vehicle of around 5-ton capacity being considered venient compromise for much agricultural work. Parallel the post-war increase in farm production, 7-tonners are commonly employed, and one operator is converting this 1 to carry 10 tons.

garcling bulk handling of grain and feeding stuffs, it is nized that this method will become a standard feature itish agricultural practice but, at present, the adaptation ,ndard vehicles, or alternatively the use of a dual-purpose is recommended until bulk methods are virtually univerapplied at all stages of distribution.

Reduction in Time

y benefits to be derived from bulk haulage will accrue y to the customer through a reduction in time, labour ;.ost of successively filling and emptying sacks or other friers. Only in exceptional circumstances is the profes1 haulier likely to be able to lead so much additional ge, because of reduced terminal times, that the extra ue will offset the additional cost of operating a bulkear vehicle. Nevertheless, as an increasing number of mers asks for this service, progressive operators will proit. But if the work is to prove profitable, the compare:oats of operating a platform lorry or bulk vehicle of ,r capacity should be clearly understood.

Len endeavouring to assess the probable advantages to ined by the adoption of bulk-delivery vehicles, it should e overlooked that there can be a big difference between ding and terminal times. Particularly would this apply ak harvesting periods when the time spent waiting in the can far exceed unloading time, whatever methods of tree are used.

indicate these differences I will now detail the operating of a standard platform-bodied 7-ton oiler and a bulkry vehicle built on a similar chassis. Dealing first with ilatform lorry, the unladen weight is assumed to be 5 cwt., incurring an annual licence duty of £38 15s_ or vivaIent of 15s. 6d. per week. This latter calculation is based on a 50-week year, thus allowing for two non-revenue earning weeks when the vehicle may be off the road for major repair.

Wages are reckoned at £9 I Is. 6d. This is assessed on the basic pay for a 44-hour week in Grade I areas in accordance with the new R.H. 66. Additions are also made in respect of National Health and employer's voluntary liability insurance contributions, together with the appropriate adjustments to allow two weeks' holiday with pay, Rent and rates are nominally assessed at 12s, 6d. per week.

With an annual vehicle insurance premium of £43, rated on Grade B areas, this item of standing costs would amount to 17s. 2d. per week. Taking the initial cost of this platforrr lorry, at around £1,500, interest charged at 3 per cent. would add 18s. per week, giving a total standing cost per week of £12 14s. 8d.

Assuming oil fuel is purchased in bulk at 3s, 10d, per gal. the fuel cost per mile will amount to 3.07d. when the consumption averages 15 m.p.g. Lubricants are reckoned at 0.25d. per mile and tyres 1.60d., on the basis of 30,000 miles per set, whilst maintenance adds a further 2.I3d. per mile.

Depreciation Cost

Deducting the cost of the initial set of tyres from the price of the vehicle together with an estimated residual value of 12i per cent. leaves a balance of approximately £1.140 to be written off. We will assume that both the platform and bulk vehicles average 500 miles per week and are operated for six years, giving a vehicle life of 150,000. Depreciation cost per mile thus becomes 1.82d., and the total for the five items of running costs 8.87d per mile.

With the weekly average mileage remaining at 500, the standing cost per mile becomes 6,11d., which when added to the running costs gives a total operating cost per mile of 14.98d. Correspondingly the running cost per week is £18 9s. 7d, and the total operating cost per week £31 4s. 3d.

Because of the addition of the bulk body, the unladen weight of this vehicle will be assumed to be 4 tons, making the annual licence duty £50 or per week. Wages remain at £9 I Is. 6d. per week and similarly rent and rates at 12s, 6d.

Because many of the present deliveries will have to be made in sacks, as well as in bulk, it will be assumed that a dualpurpose body is purchased at an overall cost, with chassis, of £4,000. As insurance premiums of commercial vehicles are calculated on cost and carrying capacity, as well as other factors, the annual premium will now become £58 15s. or the equivalent of £1 3s. 7d. per week.

Interest will also be increased to £2 8s., making the total standing cost per week for this bulk vehicle £14 15s. 7d, as compared with £12 14s. 8d. for the platform lorry.

Reckoning Maintenance Fuel consumption will be assessed fractionally higher at 3.18d. per mile, whilst lubricants will be the same at 0.25d. Increasing the cost of a. set of tyres to £210 to provide for the slightly higher gross weight brings the tyre cost per mile to 1.68d. When reckoning maintenance, some addition will have to be made to allow for keeping the special body, and whatever means of discharge is employed, in good repair. We will arbitrarily assume a 50-per-cent. increase on the figure accepted for the platform vehicle, so raising this item to 3.19d. per mile.

Adopting the same procedure as before to obtain the balance to be written off results in a total of 13,320, with a corres ponding cost per mile of 5.30d. Total running cost now becomes 13.60d. per mile and the total operating cost 20.69d, as compared with 14.98d. for the platform vehicle.

With the average weekly mileage still remaining at 500, the total operating cost per week for the bulk vehicle will be £43 2s. 3d. as against £31 4s. 3d. for the platform lorry. On short leads it may just be possible that this increase of approximately a third in overall cost could be offset by additional revenue accruing from the increase in tonnage moved. In the majority of cases, however, the higher cost could be met only by an adjustment of rates, as the progressive haulier will have no alternative but to meet his customer's demands and provide a bulk-delivery service, resulting from the continuing and increasing mechanization of agriculture. S.B.