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HINTS FOR HAULIERS.

12th June 1923, Page 21
12th June 1923
Page 21
Page 21, 12th June 1923 — HINTS FOR HAULIERS.
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Which of the following most accurately describes the problem?

The Relative Importance of Standing Charges and Running Costs. Why it is Necessary to Know Both Time and Distance Before Quoting for a Contract of Haulage.

T IS WHEN we came to consider running costs and standing charges jointly, a-s we must if we would arrive at the total operating costs of a motor vehicle, that we begin to congratulate ourselves upon our own assiduity during the arithmetic class at school. For the first time, perhaps, after all these years, do we begin to appreciate the value of those problems about running taps, trains, clocks that gain, and clocks that lose.

You know the kind of thing 2 " If one tap will fill a bath in five seconds and the other in five hours, how long will it take you to have a .bath if there is • no hot water for either ? " Or: " If your clock • gains five minutes in five hours and mine loses all the time, what is going to win the Derby? " These are the sort of questions that you must be able to answer off-hand if you want to make a living at this motor haulage business. As a matter of fact, if you can properly answer the second, you probably will not need to read any more of these hints.

The Two Pocket-emptying Taps.

However, to be serious again, we are in this business concerned with at least two taps, which, as they run, empty our pockets or diminish our banking account, as the case may be, if proper steps be not taken in the way of,making adequate charges to safeguard ourselves. The two taps with which we are concerned just now—for there is another with which we must deal later on—are the standing charges and running costs. The first of these is always running; the second only operates periodically. Standing charges have to be paid all the time a lorry is in commission ; running costs have only to be met when the vehicle is working. What we must know, if we intend to make a success of motor haulage contracting, is the combined effects of the i two n connection with any job which is undertaken.

If an unknown prospective client were to ask a price for hauling 25 tons a distance of 25 miles, how would you answer him? You do not know.

If you have only a 5-ton lorry, which means that you will have to do five journeys, covering in all 250 miles, can you estimate on that as a basis? You will not if you have had any experience! There are two main factors to any job of motor haulage—time and space. No quotation can ever he made ; nor is any estimate of cost ever possible without fairly accurate knowledge of the effect of both these factors. Time affects the standing charges, space—distance travelled—the running costs.

Allowance for Time Losses.

In the above example only the space factor is given ; there is no mention of time. Now, many newcomers to the industry would fall into this pretty tra-p—for trap it very frequently is—and quote on the basis of 250 miles with a 5-ton lorry, or otherwise, according to the capacity of his vehicle or vehicles.

Now, allowing an hour for loading, and the same time for unloading, and reckoning a 10-hour day— which is the common lot of the haulier—it would be possible to do the job in three clays and a half at the rate of three single journeys a day if no trouble'

inexperienced haulier Probably even the most haulier would anticipate some slight , difficulty and would quote on a basis of four days. Reckoning, just for the sake of argument, and keeping to round figures to make calculation easy, 21 a day standing charges, and is. a mile running Coats, the total operating cost of the lorry would be 14 plus 212 10s., £16 10s. in all.

Delays in Dock Queues.

Now, suppose the following quite possible chapter of events: the load has to he collected at the docks, and on arrivel there it is found that there is so much congestion that hours have to be spent waiting an opportunity to take on the load, which proves to be one which is most awkward to handle, taking a couple of hours or more to get on board. In the end., as the result Of these difficulties, a single outward journey only is practicable on the first day. Further, to improve matters, the arrival at the place of delivery is so late that the premises ire closed for the day, and it is impossible to unload that night. The result is that the vehicle has to be put up until next morning, when work can only commence after 9 o'clock.

It may very well happen that the return journey is on this account so delayed that when the docks are reached once more there is no hope of a reload that night. Two days have, therefore, gone, and only one of five journeys has been completed. The odds are that these difficult conditions will be found to operate throughout until the completion of the contract, which will occupy a fortnight, at a cost in standing charges of £12 and running costs 212 108., 224 10a. as against ,16 10s., no less than 28 over tha estimate, and that for operating costs of the lorry alone, taking no account of organization or overhead charges, which are also directly dependent upon the time factor.

I have not yet gone into the question of these overhead expenses, except in referring to the question of entering up the wages of a driver's mate. Even in that one item of organization expenditure there would be, in this particular job, a further loss of 23 at least, due to the unexpected extension of the time taken over the job. Since this is no exaggerate(i example of the sort of thing that is 'going on daily in the motor haulage business, it is Clear that a rash quotation for a contract may easily cost the haulier anything from 110 to 215. The necessity of knowing how much time is involved in a contract as well as how many miles should therefore be clear.

How Not to Quote.

Never quote for work on mileage only, and never quote on time only, unless you are very well acquainted, indeed, 'both with the client and with the class of work which is offered.

The total cost of operating a lorry is—once more— made up of standing charges and running costs. Its cost per week may not be calculated without knowing how many miles it has run in that week, and its cost per mile is unascertainable without knowing how many miles it is running per week. The cost per week is found by adding to the standing charges per week, the running cost per mile multiplied by the number of miles which it has rim during that week. The cost per mile is found by adding to the running cost per mile the standing charges per week divided by the number of miles per week. Thus, taking again, the convenient round figures given above—of 21 a day standing charges (26 a week) and Is. a mile running cost—the operating cost of such a lorry per week,. assuming that it is running 300 miles during that time, is £6, plus 300s., 221 in all. Its operating cost per mile is is., plus 26 divided

by 300; total, is. 4.8d. THE SICOTCH.

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