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io upturn this year ;ays industry guru

13th September 1980
Page 7
Page 7, 13th September 1980 — io upturn this year ;ays industry guru
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Which of the following most accurately describes the problem?

PitlAND for haulage is unlikely to recover before the end of s year, according to an industry economist's report pubhied this week.

points out that own account arators are maximising the of their own vehicles at the )ense of haulage fleets, and 3 is having an adverse effect rates. And with manufacturdestocking throughout the miry, demand for transport I continue to fall.

The report warns also that a atively high wage award, ainst a background of a fer's market on rates, will d to a sharp drop in the mber of employees in ilage next year.

/lost sectors will suffer from recession, including tanker car transporter work, but the momist sees some scope for nsporter operators to benefit he Austin Metro and Ford EsI are as successful as their 'kers hope, )ne area of light amidst the )om is warehousing and tribution, which is expected hold up well, with operators' tailor-made services being tied in to the retail market.

These predictions correspond with experiences throughout the country, and there is strong evidence that operators are disregarding Road Haulage Association advice that they should not undersell their services.

Typical of the picture being painted is that in Scotland where RHA secretary Tom Brattin says some rates are as low as they were two years ago. "It is very disturbing indeed," he told CM.

He says that some of his more prominent members are now in financial trouble, and says of rate cutting: "I just don't know how to stop it. Hauliers know the dangers, but they are so desperate for work that they will accept the rates being offered by their customers.

"And it will rebound on their customers in the long run," he added.

Northern RHA secretary Denis Le Conte said: "My members are talking about appalling rates this year." One of his members quoted a rate for the hire of an eight-wheel tipper to a farmer, and was told that another operator had tendered for half that price.

"Everything is down. Customers are no longer interested in service; only in the lowest rates which they can get away with," he continued.

And he added that it is becoming increasingly difficult for operators to collect money from their customers. Some RHA members say they are spending more and more time going around collecting money, and even then are only being repaid in part.

In Hull, area secretary Margaret Edmunds says "everyone is complaining" about rates at present.


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