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HINTS FOR HAULIERS.

15th August 1922, Page 12
15th August 1922
Page 12
Page 13
Page 12, 15th August 1922 — HINTS FOR HAULIERS.
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Which of the following most accurately describes the problem?

"The Skotch" Prepares a Series of Tables Showing Operating Costs, which Indicate the Advisability of Hauliers Carrying Out Work for Clearing-houses.

THERE IS ONE thing at least about which we ought to try to come to a decision. Who should lay himself out to work for clearing houses, and who should not? The basis of choice is necessarily the money-making one. Whom will it pay to work for the clearing-house, and who will lose some proportion of his profits by so doing? Now I clearly cannot deal with all the possible cases in a single article, or even in a score of articles such as this. A good deal depends on how a man is situated, how much regular work he has already, and what prospects there are of increasing it by direct means. It is also important to know how much the business that he does, and can get, will cost in overhead expenses (concerning which see the article in The Commercial Motor for September 1st, 1921). The locality of the haulier's headquarters will also, affect the question. Indeed, there is a whole host of things which would have to be considered before we could finally arrive at a decision on this important question. In thinking over this article I had at first the idea that the best way to begin the sorting-out process would be one based on the capacity of the vehicles owned, reckoning up the working cost of each on a certain weekly mileage, and thence determining the profit, if any,

which would accrue after receipt of the standard rates payable for the load carried.

Almost immediately I came up against a serious snag. flow much of the haulier's time is going to be devoted to this clearing-house work? All ; the larger part; or quite a small proportion? Much turns on thispoint. If he works all the time for the clearing-house, then be has no other expenses over and above his lorry working costs beyond a certain amount of extra outlay due to his having occasionally to sleep away from home. If he divides his interests, then there will be in connection with his own work a certain proportion of overhead costs, for which he must make due allowance. He is, perhaps, justified in putting most of this down to his own work, but can rarely afford to load his own contracts with all of it.

How am I going to reckon up a case of this sort? Most hauliers, I take it, will prefer to work for themselves, supplementing their own contracts by such wo.-rk for the clearing-houses as they can conveniently do. Anyhow, I will take the simple case first, following it up, subsequently, by some brief notes concerning actual examples of some series of

journeys which have actually been run for the National Road Transport Clearing House, Ltd.

Individual examples are best dealt with direct, and I will personally advise, by letter, or, wherever possible, by interview, any reader who cares to write to me stating his ease. There is only one rule to be observed in connection with correspondence of this nature ; a stamped addressed envelope must be included witii any qui-ry. Letters may be addressed either to the Editor, or to me, care of the Editor.

Operating Costs for Pneumatic-tyred Vehicles.

It will not take long to deal with the case of the owner of a light van. One of the tables gives the total operating costs of pneumatic-tyred vehicles having capacities up to, and including, 30 cwt. The figures are calculated on a basis of 500 miles actually run per week. The cost per ton carried is also given on the assumption that the vehicle is fully loaded with a paying load for every mile of the 500. As the average clearing-house rate is but 41d. per ton per mile, less 10 per cent., there is not much hope for the owner of any vehicle of these capacities who is considering clearing-house work.'

Operating Costs for Solid-tyred Vehicles.

The second table gives corresponding figures for solid-tyred vehicles having capacities ranging from 1 to 6 tons inclusive. In this table I give an additional line in which are shown actual earnings for each type based on payments of 40. per ton per mile, less 10 per cent. From this it is quite evident that there is not going to be any money made at all at clearing-house sates with anything smaller than a 3-tonner.

A Summary of Costs and Mileages.

In a third table, therefore, I give (a) the operating costs, (b) the cost per ton carried, (c) the gross return per mile, based on a payment at the rate of 41d. per ton, le'ss 10 per cent., (d) the gross profit per mile, and (e) the gross profit per week calculated on various mileages per week. It will be noted that in these calculations I have taken no note of the further discount of 2i per cent. which the haulier has to give to the clearing-house in return for cash payment instead of monthly settlement. I do not make allowance for this, because I regard the

cash payment as being only an. emergency measure. Considering this third table, it is quite apparent that, even ,vith a regular weekly 500 miles of paying load; a three-tonner is of no use for this work. The decision as to the advisability of carrying on business for clearing-houses may, with these tables as a guide, be left in part to the judgment of the individual concerned. I say in part advisedly, for I have ample evidence before me, in' the way of correspondence, to show that the majority of hauliers will be to a certain extent misled by these figures If I leave them as they are without further qualification.

Pointsthe Haulier Should Consider.

They will go wrong on them for three reasons: In the first place, they will not appreciate the meaning of the words "gross profits." At least 30s. a week ought to be allowed for expense due to being away from home. This difference alone is enough to bring into doubt the advisibility of running even a four-tonner on clearing-house work if the mileage does nt. exceed 400 per week.

Secondly, there are few hauliers who will appreciate the real importance and meaning of the word "average." A man who does an occasional 500 miles' week will think himself perfectly safe in continuing to do-the work. As a matter of fact, the average mileage of 500 is practically unobtainable ; 400 miles is probably the maximum. Then there is the third consideration that even all of this 400 will not be paying mileage ; there must always be a certain amount of empty running—certainly not less than 50 miles a week. if we now examine some of the figures given in the table in the light of these three considerations, we shall arrive at a better understanding of the problem as a whole. I will take three cases—a 4-tanner, 5-tonner, and 6-tonner, all working at 400 miles a, week. The gross profit for the 4-tonner is given in the third table at 25 17s. 8d. If, now, we deduct such a proportion of this as will allow for dead mileage; this figure is reduced to 25 3s. A further allowance for out-ofdoor expenditure at 30s. a week reduces this to 23 13s. a week, which is hardly attractive.

The corresponding figures with a 5-tonner are :— Gross profit, 210 Os, 8c1. profit after allowance for dead mileage, £8 15s. 7d. ; and, afterdeduction of expenses, £7 5s. 7d. With a 6-tanner, the figures are :-214, 212 Ss., and 210 15s. respectively.

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