)etermination to make aarcels pay
Page 32
If you've noticed an error in this article please click here to report it so we can fix it.
HE express parcels carriers in Britain lave generally raised their rates by 30 Yer cent or more in the past 12 months. Ate industry is so labour intensive that vages may absorb almost 50 per cent of otal income and 60 per cent or more of verating costs. This year's crop of wage ncreases will force up parcels rates tgain. The need for a 'prompt recovery n rates charged to customers of drivers' my ,increases needs no stressing.
It has been necessary for the larger ;ompanies to satisfy the Prices Cornnission that rate increases have been ustified and express carriers have not round it easy to absorb 50 per cent of vage increases in terms of productivity. he legislation now calls for 30 per cent :o be absorbed but, of course, the scope or doing this in a situation of steadily declining traffic, and a sensitive labour relations climate, is very limited.
Mr K evin Fitzmaurice, vice chairman of the express carriers group of the RHA, reckons parcels traffic has declined by some 20 to 25 per cent in the past year and efficiency has probably declined in line with this since mechanized depot handling equipment cannot be fully utilized and vehicles cost as much to operate partly loaded. There is sometimes scope for marrying rounds to save wage and vehicle costs, and customers are encouraged to bring in goods to depots for onwards dispatch or — in the case of bulk trunked movements from manufacturers — for area distribution in small lots.
Campaign
Manufacturers of widely distributed "small" products operating their own fleets will shortly face a potent publicity campaign conceived by a group of parcels specialists — including the State sector. The theme will. be: "Do you really know your own costs?" — a familiar cry, but one which parcels carriers hope will attract urgently needed traffic for under-used facilities.
The express parcels group now numbers well over 100 companies and policy is concerted at three-monthly meetings. In the past year a new constitution and code of conduct has been agreed and the register of members has been brought up to date. Some old firms have dropped out of the industry and a fair number of new firms have joined.
In a word, parcels carriers face a difficult future with qualified optimism and great determination to play a greater role in distributing the nation's "smalls". J.D.