WHERE RATES SG-II
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niLES "FALL DOWN" ()NE of the features about the schedule of rates I which was published last week, having been submitted to me for criticism, is that there are gaps of five miles in the scale of distances, except the first one. A rate is quoted for a two-mile lead, then for five miles and thereafter for 10, 15 and so on up to 30 miles. There is an objection to this method : it definitely leads to rate-cutting, as any experienced haulier will confirm. A customer wishes a load to be hauled a distance of six miles. The schedule quotes 5s. per ton for five miles and 55. 9d. per ton for 10 miles.
As the wording of the schedule includes the expression "up to," it is reasonable to assume that those who compiled it intended that the rate per ton for a lead in excess of two miles and up to five miles should be 5s., and for a lead in excess of five miles and up to 10 miles, 5s. 9d. per ton. It is only to be expected that a tile manufacturer, 'wanting some material to be carted a distance of six miles, will offer the haulier the five-mile rate for it, and, in nine cases out of ten, thehaulier will accept the five-mile figure. Now, if the five-mile rate be calculated on a reasonably profitable basis without any margin, to haul materials six miles for the same rate is to cut the price.
In order to ascertain what margin, if any, exists itt these rates, I have compiled Table IV, which shows the earnings of each mile run, assuming that the haulier obtains the rates scheduled in Table I (Published last week). In calculating the figures for this table, I have assumed, as stated above, that the words "up to ' in the schedule have the meaning I gave to them; that is to say, a tile manufacturer would be expected to pay for a lead of six miles the rate quoted for 10 miles.
On looking down any particular column of this table, it will be apparent that those who compiled the original schedule have not entirely overlooked this possibility. There is a little margin at the critical figures of distance hauled. For example, assuming a 5-ton load, it will be observed that the revenue per mile for a 10-mile lead is 1s. Sid., but for an Il-mile lead, over which distance the material is conveyed at the rates quoted for a 15-mile lead, the revenue per mile is Is. 61d., or lid. per mile
S.T.R. Prepares His Own Scale.
To discover whether these rates are such as can be recommended; I have prepared a schedule of my own, taking as a basis the figures in The Commercial Motor Tables of Operating Costs. I have also assumed that the data given in the previous article, concerning time for loading and unloading, are accurate. (In that article I described a conversation, relating to the business of tile haulage, which took place in my hearing between three experienced members of the trade.) The time for loading quoted was one hour per 3 tons of tiles, and the same for unloading, assuming that two men were employed.
Taking first the case of a 3-tonner and assuming— shall I say, for the sake of argument?—that it carries only 3 tons, the rate per hour for a vehicle of this capacity, with driver alone, is 3s. As we are assuming two men to be available, another shilling must be added to that rate to cover the cost of the second man, making 4s. per hour. The amount to be charged for loading and unloading alone must be 8s.
Up to a five-mile lead, it is safe to assume an average speed of only 20 m.p.h., because of the time lost in getting away from both termini; six minutes must, there
a26 fore, be allowed per mile lead (which means two miles of travelling). The total time for a haul of one tulle is thus two hours six minutes.
The rate is best calculated in this way. Terminal charges, 8s.; travelling charges (six minutes at 45. per hour), 5d,, plus two miles at a charge of 41d. per mile (see The Commercial Motor Tables of Operating Costs), 9d. : total charge for travelling, ls. 2d. : tOlal charge for the journey, 9s. 2c1.
For each additional mile lead up to five miles, the same addition of Is. 2d. must be made to the foregoing amount. That ls. 2d, is made up of Sd. for the six minutes occupied in travelling the two miles involved, and 9d., being the running charge for the two miles at 41.-cl. per mile. For a two-mile lead, therefore-, the total charge must be 9s. 2d., plus ls, 2d., which is 10s. 4d., and so on up to five miles, for which the charge should be 13s. 10d.
Beyond five miles, it is reasonable to assume that the average speed will be about 24 m.p.h., in which case every mile lead (involving, let me again point out, two miles of running) means an addition of five minutes to the time. Instead, therefore, of 5d, per mile lead for the time occupied in travelling, 4d. will suffice and, instead of an addition of is. 2d. for the journey per mile lead, is. id. will be enough. In this way I have arrived at the figures shown under the heading " 3 tons" in Table V.
For a 5-ton load I have taken a rate of 3s. 1/d. per hour and 6d. per mile. I am still assuming that only two men are employed and that 1/ hours will be necessary to load, and the same period to unload. Accordingly, 3/ hours will be spent at terminals. The charge for this lime at 4s. 11d. an hour, which amount includes the provision of Is. for the extra man, is 14s. 6d.
If the vehicle used weighs less than 21 tons unladen, the same speeds can be assumed as in the case of the 3-tonner, so that for each mile lead up to five miles, we must reckon on six minutes for travelling, which is equivalent to 5d., and is. for running charge (two miles at 6d.). For a two-mile lead, therefore, the charge must be 14s. 6d., plus twice is. 5d., making a total of 17s. 4d. For a five-mile lead, 21s. 7d. Beyond five miles the addition need be only Is. 4d. per mile lead. These figures are set out in the column headed "5 tons" in Table V.
When we come to 7-ton loads, it is necessary to appreciate that the speed of travelling will not be quite so great. Up to five miles lead Nye can assume an average of only 15 m.p.h. and, beyond that, 18 m.p.h. As the basis for rates I nave taken 3s. 7d, an hour for the vehicle, plus Is. an hour for the extra man and 7d. per mile for the running charge.
If there be only two men employed, the time for loading and for unloading will be 21 hours in each case, and the charge for that part of the work alone will be 20s. 8d. Up to the five-mile lead, an addition of 1s. 10d. per mile will be necessary, and beyond that distance, is. 9d.
Difficulty With 7-ton Loads.
Those are the figures on which the corresponding column in Table V is calculated. It should at once be apparent to the redder with any experience that, if only two men be employed, a difficulty will shortly arise in connection with the haulage of 7-ton loads.
For two loads per day, nine hours will be necessary for loading and unloading, leaving only one hour for travelling with each load, thus limiting the distance for two loads per day to approximately a seven or eightmile lead. This pioblem and other figures which I have compiled I propose to discuss in subsequent articles. S.T.R.