Costs rise, rates must too
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ANYONE EXPECTING a massive confrontation between the Road Haulage and Freight Transport associations over rate increases will be disappointed.
The RI-IA has given notice that rates must go up to meet rising costs. The FTA has said that its members cannot afford to pay more.
Harold Russett, the ebullient RHA chairman, has reiterated in strong terms his association's intentions. The FTA has observed an almost aristocratic silence.
Of course rates will go ulzi Not only road haulage rates but rail, sea and air-freight rates will rise. As will the cost of all other services and, consequently, the cost of consumer goods.
The rate the carrier wants and the rate he gets for his services are two different figures. What he wants is the basis for negotiation: what he gets is the result of negotiation. Unlike local authority, gas, electricity and bank costs, road haulage rates are not firm figures.
We expect the chief executives, chairman and president of both associations to sort things out behind closed doors. In the meantime, it is no bad thing that industry, commerce and the general public should be made aware that both haulage and own-account operators are fighting to contain cost increases, unlike the public sector which can impose higher charges with impunity and delve even deeper into the private purse.