Rental rates fail to increase
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• Truck rental rates are still 30% below what they should be, despite the recent call by the British Vehicle Rental and Leasing Association for a return to logical and sensible pricing (CM 29 March-1 April).
John Goodreid of Intertrail Contracts says some companies are offering ludicrous deals making everyone involved in truck rental vulnerable. "There will soon be some spectacular bumps in the market. Numerous companies would sell out if they could find a buyer."
Goodreid reports that the real rates being charged are not only too low, but also there should have been a 20% increase by now.
"We calculate there is a twoyear over-capacity in the truck rental market and we're not interested in developing our business in that sector any further.
"We will maintain our fleet of 150 vehicles for short-term rental — we have some good customers who pay our rates," he adds.
"We have reduced our rental fleet by 50% in the past year and turned our attentions to contract hire."
At last week's NFC results, deputy chairman James Watson complained BRS truck rental revenue had slumped 20%. He said the market was a victim to rampant discounting. However, he believed the decline in the market was bottoming out.
Philip Holmes of Renwick Freight, which has a rentals division of 150 vehicles, says it has taken a positive line to keep its rates up by improving the service and offering a range of specialised vehicles — such as glass carrying, tipping and horse boxes. "I've never heard yet of the best company being the cheapest."
Ryder Truck Rental has raised tariffs across the board — for example 17-tonners up 17% and 7.5-tonners up 12%. A spokesman for the company says its policy to raise rates has not been a problem. "You always lose a few, but none of them is long-term.
"The short-term rentals always respond more to changes in price."