Costs go up rates must follow
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by CM reporter ROAD haulage operating costs rose by an average of 10 per cent in the first nine months of this year, according to a survey by the RHA.
And with the latest pay awards to be taken into account that means that costs will have gone up by 121-15 per cent by the end of 1975.
The RHA reports that particular items which increased considerably in cost included vehicle licence duties (by onethird, representing L08 per cent of the total increase), vehicles (18.5 per cent or 1.57 per cent of the total), general maintenance (18 per cent or 1.34 per cent of the total) and establishment costs (20 per cent or 1.08 per cent of the total).
Wage awards made by some firms in January 1975 contri buted to the increase in costs during the period.
The RHA points out that wage rises since September will have a considerable effect on haulage costs in the last quarter of the year and, together with increases in other items, will have to be taken into account by road haulage operators when adjusting rates.
It is generally accepted that wages make up approximately 25 per cent of the total operating costs. If the next wage rise is of the order of 10 per cent (taking £60 as the average wage) that adds 21 per cent to the costs bill overall.
This, added to the RHA's figure of 10 per cent and any cost increases still to come, means hauliers will have needed a 121-15 per cent rate rise to keep pace.