Planning for Profit
Page 68
If you've noticed an error in this article please click here to report it so we can fix it.
"Artics" are Cheaper to Buy and Run
Comparative Costs fbr a Popular Articulated Outfit and a Rigid Six-wheeler, Both of 20 Tons Gross COMPARATIVE operating costs of a rigid and an articulated six-wheeled platform vehicle have been requested by a reader. The calculations I have made confirm the importance of accurately assessing both the conditions and cost of operation, so as to make sure the right vehicle is selected for the job on hand.
The reader quoted as the articulated vehicle a popular tractor unit, with oil engine, coupled to a 26-ft. platform semi-trailer, giving an unladen weight of 4 tons 12f cwt. The price of the motive unit was stated to be £1,650, with a further £850 for the semi-trailer, making a total of £2,500. The selected rigid six-wheeler has an unladen weight of 7 tons, a platform length of 24 ft, and costs £4,450.
In the accompanying table, the first item of standing costs-licences—of the articulated vehicle is a combination of annual duty (£65 a year in this instance) and the carrier's licence fee. Assuming the vehicle is operated on A licence, the fee is now £10 for a currency period of five years, or £2 a year, making the total annual licence cost £67, or 26s. 10d. per week, allowing for two non-revenue-earning weeks a year.
Wages are based on those payable to drivers of vehicles with a 10-ton to 15-ton carrying capacity operating in a Grade 1 area as specified in R.H.(62). In arriving at the weekly figure of 184s. 10d., allowance has been made for two weeks' holiday with pay and national and employers' liability insurance contributions. Rent and rates, on the other hand, have been arbitrarily assessed at I5s. per week.
Insurance Costs £175
Wide variation could occur in estimating insurance costs, dependent upon whether the operator deals with a tariff or independent accident office and, of course, upon his previous accident record. The annual cost of insurance is built up from a basic premium of £100, with additions relative to a scale of rates for excess loads and values, giving a total of £175. Interest is charged at 3 per cent. on the initial outlay of £2,500.
Total standing costs for the week are £16 6s. 8d., or 5.23d. per mile, assuming that the vehicle averages 750 miles per week. Turning now to running costs, the biggest item—fuel—is based on a consumption rate of 14 m.p.g. at a cost of 4s. 3d. per gallon. Lubricants cost 0.26d. and tyres (calculated on an estimated life of 40,000 miles) 2.40d. per mile. Maintenance has been assessed at 2.20d. per mile and depreciation at 2d. Depreciation is based, at the reader's request. on a five-year life for the medium-priced tractor unit, with a 10-year life for the semi-trailer. In this instance the respective mileages would be 187,500 and 375,000.
Running costs total 10,50d. per mile. giving a total operating cost per mile of 15.73d.
In the case of the rigid six-wheeler, also with oil engine, the weekly cost of licences-44s. 10d.—is more than that of the medium-weight articulated vehicle, because of its higher unladen weight of 7 tons. Wages and rent and rates remain the same, loads and overall dimensions being similar.
Because of the higher price, however, insurance and interest costs are increased to 80s. and 54s. respectively, giving a total weekly standing cost of £18 I8s. 8d. Fuel costs will also be higher, as the rigid vehicle is stated to have a consumption rate of 9 m.p.g. Costs of lubricants, tyres and maintenance are also increased, as is to be expected from the heavier vehicle.
Finally, depreciation is based on a 10-year life (375.01)0 miles) for the whole vehicle, whereas only the semi-trailer has been charged for that period in the case of the "attic." The difference between the depreciation costs-2d.. compared with c32 2.43d.—is less than the difference between the initial cost prices of £2,500 and £4,450 respectively.
Thus, the running costs of the rigid sixwheeler amount to 13.78d. per mile, which, added to the standing cost per mile of 5.6l d., based on a in a total operating cost per mile of
19.39d. Compared with per mile , . 15.73
19.39
the corresponding cost of operating . t h e articulated vehicle, this represents an increase of 23.27 per cent.
Whilst the costs of operation can be estimated in detail for various types of vehicle, the conditions are peculiar not only to each haulier, but often to the several traffics he may carry.
Established operators will no doubt claim, and rightly so. that in some aspects the two vehicles chosen are not strictly comparable, as the rigid vehicle should prove more ,robust because of its heavier construction and larger engine. Such a contention would be valid when operating under particularly rigorous conditions, In other circumstances, however, this greater margin of strength could prove a handicap, raising both the initial and operating costs, to no advantage.
It is most important, therefore, that the newcomer should not handicap himself from the start by purchasing the wrong type of vehicle. When making such a decision, his first consideration should be whether or not the type he has in mind is ideal for the job it will have to do. If he chooses wrongly, the situation cannot be redeemed by the quality of the vehicle. however high the manufacturer's reputation may he.
Each to its Own Sphere 130CLSe both the medium-weight six-wheeled articulated outfit and the heavier rigid six-wheeler exemplified here are used in large numbers by experienced hauliers, it is obvious that both types prove satisfactory to their operators' own needs. 11 would be easy—but wrong—for the newcomer to assume that either type should be adequate to his needs. It would depend on his own operational circumstances.
If the conditions were not unduly adverse, the articulated outfit would show big economies in normal operation. Moreover, if bulky rather than heavy traffic were carried, it would have the advantage of the longer platform-26 ft. compared with 24 ft. Also, should the purchaser be sufficiently established to make use of the facility, articulation could pei'mit economie5 in traffic operation resulting from an interchange 01 sem i-trailers.
On the other hand, if loads up to the legal gross maximun of 20 tons are to be carried regularly in hilly districts, possibij with the occasional attachment of a drawbar trailer to accom modate traffic fluctuations, the heavier rigid vehicle would hi required.
Which of these conditions apply each operator must obviousi3 decide for himselL Having made a careful assessment o. both operating conditions and costs, however, he should ther be able to take full advantage of the wide variety of type: offered by manufacturers. &B.
Total running costs 750-mile week, results per mile 10.50 1176