Do Big Vehicles Pay?
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Hauliers Restricted to the 25-mule Limit are. Faced with Economic Considerations Concerning the Operation: of Heavy Lorries formerly Used for Long-distance Work MANY 'free hauliers have a fleet of vehicles adaptable for use on longand short-distance haulage, but are limited to a radius of 25 miles. The question arises, are small or large vehicles to be preferred? The average operator Will . be inclined to prefer small machines. In that he is, probably correct, but there is sufficient ,doubt to make the Problem worthy of study. A preliminary consideration is that nowadays traffics are more varied than they used to be. The vehicles formerly used for -long-distance haulage art now pent up in this circle of 25 miles and the operator cannot now exercise freedom, of choice of loading' to the same extent as he did. He is now more or less, compelledto take whatever is offered and, of course, the kind of traffic affects the choice of vehicle.
This article, however, has come about as the result of an inquiry about rates for. brick haulage, and it is with bricks as a traffic in mind that I have made the calculations
which follow. ., To 'make the figures apply over as wide a range of loadings as possible, "howeVer, I am going to deal in tons and not in thousands of bricks. The first letter from my inquirer • asked for information regarding rates for carrying bricks and I gave him an answer on the basis of the use of a 3-ton lorry. Ile now asks me whether the same rates would apply if he were using vehicles of 12 tons or 14 tons capacity.
Load Factor In his second letter, he raises another point of importance concerning the difficulties in deciding upon rates, namely, that whereas a given rate may be profitable when a man is carrying 12-ton or 14-ton loads, it is not practicable when
he is handling 5-ton loads. .
If rates, be assessed on the basis of a 5-ton load, the operator with 12-ton or 14-ton vehicles is likely either to ' make excessive profits or to cut rates and, become a thorn in the flesh of operators who run only 5-tormers and Oonners.
On the other hand; if rates be fixed on the basis of I2-ton or 14-ton loads, then it seems likely, or this at !east is the . theory of my correspondent, that those operators who have only 5or 6-ton lorries would not be able to carry profitably. My inquirer also wished. to -know whether there should be some allowance for return loads when ,hauling. bricks, . Apparently he is able to get a fair number 'of return loads, usually agricultural traffics. I am not willing, as a rule, to concede that brick-haulage rates should provide for the poSsibitity of return loads.
Different Vehicles' Costs
As a preliminary to discussing this matter, I have drawn up Table. I, .which gives the operating costs for six types of vehicle. Only two of these—the 5-tonner and the first of the two 6-tonners—are assumed to be petrol-engined. The remainder, the 6-tonner, the 7-8-tonner, the 12-tonner and the 14-tonner are, all oilers. .
I do-not propose to go into great detail to explain the manner in which the figures in the table have been compiled. One or two points I must make, however. The initial cost 1st' the vehicle as set down in -Table' I is an average price 'which would have to be paid for the complete machine, painted, lettered andready for the road. In assessing the price on which to calculate depreciation, I first deduct the cost of a set of tyres, and then take what is called the residual value, which is what the operator might be expected to get for the machine on sale after he had used it for the six or eight years taken as the period for depreciation.
a36 . For the 5-tormers and 6-tonners I have assumed that period to be six years and for the larger vehicles eight years. I am adhering to my new practice of splitting depreciation, putting half to the standing charges and half to the running costs. The subsequent items in the standing charges do not require any explanation beyond that already presented in the table. .
In the running costs; it may be of interest to note that have taken the fuel-consumption rate as 10 m.p.g. ori the 5-tanner and 9 m.p.g. on the petrol-engined 6-tormer. For the oil-engined vehicles I have allowed 17 m.p.g. for the 6-tonner, 15 m.p.g. for the 7-8-tonner, 13 m.p.g. for the 12tanner, and 12 :m.p.g. for the 14-tormer.
Profit Ratio The results of costs -per hour and costs per mile.are given in the table. The important figures, so far as we are concerned with the assessment of rates, are, of course,.not those for costs per hour and costs per mile, but charges per mile and per hour on a time and mileage basis. In arriving at these charges, I have allowed for profit equal to 25 per cent. of Costs. Adding 25 per cent. to the cost figures per hour and per mile I get the following figures for time and mileage charges for each class of 'vehicle:.
For the 5-tonner 8s. 2d. per hour and 10/d. per mile; for the 6-ton petrol-engined vehicle 8s. 9d. and 1 lid.; for the 6-ton oiler 9s, 2d. and 8id.; for the 7-8-tonner 10s. 6d. and 91c1.; for the 12-tonner us.' 101d. and Is. 0/d.; for the 14-tonner I3s. Od. and ls. 2d.
In order to arrive at any logical sequence of rates, the important assumption will have to be made that, each vehicle carries its. rated load. The next thing to consider is terminal delays. An average delay, apart from loading and unloading, of half-an-hour on each journey is a fair allowance: In addition, there are loading and unloading times, which for the 5-tonner I have taken to be 1* hrs. altogether, giving me a total terminal delay of 2 hrs. for the 5-tanner. For the 6-tonner a total time is taken to be 21 hrs.; for the '2-tonner, 2i hrs.; for the. 12-tonner, 3/ hrs,; and for the 14-tortner,3 hrs.
More Help Available
Diminution in the' proporticin of terminal delay times allocated to the large vehicle is justified by the fact that there is usually more help available for loading and unloading these large vehicles, so that a saving is thereby affected.
The next subject to consider is that of journey times, and for this it is necessary, of course, to split the six vehicles into two groups. It is assumed that the 5-tonner and 6tonner will have a licensing weight of less than 3 tons unladen, so that the speed of these vehicles will be 30 m.p.h. The 7-8-tonner, the 12-tonner and the 14-tonner will be limited to a'maximuin of 20 m.p.h.
In assessing journey times, the following assuinptions, applicable only. to 30-m.p:h. vehicles are made: The, first half-mile in each direction will be covered in 5 mins. at an average speed of 6 m.p.h. That means, of course, that for the one-mile lead .the time taken will be 10 mins. each way, or 20 mins. in all. Daring the second half-mile in each direction the vehicle will travel at an average speed of 15, m.p.h., and Will take, therefore, 2 mins. for each half: mile, 4. mins. for the mile, and 8 mins, for the double journey. Altogether, for the 2-mile lead there will be a total of 28 mins, travelling time.
The third mile will probably be run at an average speed of 24 m.p.h., and the one mile will take 2i mins., that is to say 5mins. doing the journey of a mile each way. • The total tor the 3 miles each way wilt thus be 20 mins. plus 8 mins. plus 5 mins., which is 33 mins. After that, the average speed will be at the maximum of 30 m.p.h., or 2 mins. per mile run, which is 4 mins, per mile lead.
Taking a 10-mile lead, which involves a total travelling distance of 20 miles, there will be 33 Mins for 6 miles out of 20 plus 14 miles at 2 mins. per mile, which is 28 mins. The total time for the journey will thus be 61 mins, or, say, one hour.
This will be the same for the 6-moiler as for the 5-tonner. The difference between the two, of course, is the slight extra time required for loading and unloading the 6-tonner Working out the rate for the 5-tonner, we find that 2 hours are spent at terminals plus one hour in travelling. Tlifee hours at 8s. 2d. per hour represent £1 4s. 6d. To that sum must be added the charge for 20 miles run at 101d. per mile, which is 17s. Id. The total charge must thus be £2 Is. 7d., which. to the nearest farthing, is 8s. 4d. per ton.
With the 6-ton petrol-eugined lorry, the total time is 3/ hrs., instead of three because of the extra quarter of an hour needed for loading and unloading. The rate per hour is 8s. 9d.. so that the charge for time is £1 8s. 5d. To that must he added the charge for 20 miles at 111d, per mile, which is 19s. 2d., so that the charge must be £2 7s. 7d. for 6 tons, that is 7s. 11/d. per ton.
For the 6-ton oiler,, 1 have the same time and distance as for the 6-ton petrol-engined vehicle, but the rates arc different. The hourly rate is 9s. 2d., and for 3/ hrs. that amounts to £1 9s. 10d. The mileage rate, however, is only 814., and 20 miles at 81d. equals 14s. 2d. The total charge should be £2 4s., which is practicaLiy 7s, 4d. per ton, 'the lowest rate of the three vehicles with which I have been treating.
Before proceeding to deal in a similar manner with the large vehicle, I think it would be better to build up the rates schedule for these three smaller vehicles starting with a one-mile lead.
Arriving at a Charge
For the 5-tonner there will be the terminal time of 2 hours plus 10 minutes each way for travelling, which is 20 minutes in all. The total time is 2 hours 20 minutes, and that at 8s. 2d. per hour equals 19s. Add for 2 miles at 1011 per mile, which is Is, Sid., and we get a total charge of 1 Os. 81d., which is 4s. 1?,d. per ton..
With the 6-tonner, there is a terminal delay of 21 hours, a travelling time of 20 minutes, so that the total time is 2 hours 35 minutes. At 8s. 6d. per hour that is £1 2s. 7d.; add Is. lid., the cost of two miles at I lid, per mile, and we get £1 4s. 6d., and that is 4s. Id. for each of the 6 tons carried.
For the 6-ton oiler, the time is the same-2 hours 35 minutes-and that, -at 9s. 2d. per. hour, is £1 3s. 8d. Add Is. 5d. for two miles at 81d., and we have El 5s. id., so that the charge in this case is 4s. 2d., the highest of 116 three, A little consideration will make it clear why this seemingly contradictory result comes about, inasmuch as it would have been expected that the cost per ton of the oiler would be less than that for the others,. The reason is the comparatively high standing charges which apply to the oiler. These make it rather more expensive to operate for extremely short runs. However, as will be shown, this disadvantage is speedily wiped out as the lead mileage increases and the advantage which the oiler has in running costs comes more and more into the picture.
For a 2-mile lead we have to add 8 minutes to the limethe vehicle during that extra mile is travelling at 15 m.p.h.and the cost of 2 miles. For the 5-tonner, 8 minutes at
gs, 2d. per hour cost Is. Id.; two miles cost Is 81d., so that the total addition to the charge for this additional mile lead is 2s. 9i,d. That is a shade over 61-d.. per ton, and makes the rate for a 2-mile lead 4s. 71d. per ton for this
5-ton machine.
For ihe 6-ton petrol-engined vehicle, 8 minutes at 8s. 9d. per hour cost Is. 2d., to which must be added ls." I Id. for 2 miles, giving us 3s. Id., or an addition of a little more than 6d. per ton. The rate for a 6-ton petrol vehicle is 4s. 7d. per ton for a 2-mile lead.
For the 6-ton oiler, the addition is Is. 3d. for time and Is. 5d. for mileage, which is 2s. 8d. That is equivalent to a little short of 51d. per ton, and brings the rate per ton for 2 miles lead to 4s. 70.
For the third mile, we added 5 minutes of time and again the cost of 2 miles of travelling. For the 5-tonner 5 minutes at 8s. 2d. per hour is equal to 8/d. plus is. Itid. for 2-miles. 2s. 4fd, in all, which is 51d. per ton, bringing the rate for a 3-mile lead to 5s. Id.
6-tonner's Rates For the 6-ton petrol-engined machine, 5 minutes at 8s. 9d. per hour is Cd. Add Is. lid, for the 2 miles, and we get 2s. 7fd., or 5.1d. per ton, which brings the rateto 5s. Old. for the 3-mile lead on this vehicle. The 6-ton oiler costs 91d. per 5 minutes, and that plus Is. 5d. for the 2 miles run makes a total of 2s, 21d., which is 41d per ton, and bring. the rate up to Ss. It should be neted that the rate on the 6-ton oiler is now the lowest of those of the vehicles for which I have been computing figures.
Beyond the 3-mile lead, the rate rises steadily by an amount equivalent to the rate for 4 minutes and the cost of travelling 2 miles, For the 5-tonner, that is 61d, plus Is. 81d., which is 2s. 21d., 51d. per ton. For the 6-ton petrol-engined vehicle it is 7d. plus Is. I Id., which is 2s. 6d.. or 5d, per ton. For the 6-ton oiler it is 71d., plus Is. 5d., which is 2s. 01d.,
or 4d. per ton. S.T.R.