A Challenge to Road Haulage-
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in its own interests
A Strong 'Plea for Closer Relations With the Railtbays as a Means for the Creation of an Economic Rates Scheciple
THAT there is no time to lose in the national stabilization of roadhaulage rates," is 'urged by Mr. Harry Wood, of Huddersfield, who, in voicing feais of a rates slump as an outcome of changed war-time circumstances, states that established regional rates, which have been readily recognized by transport users, are already being undercut.
Mr. Wood, 'a prominent Yorkshire exponent of Scientific formulation of road rates, sounds this warning .in a statement, the fall text of which is here given. He calls for imrnediate action on the rates problem in collaboration with the r4ilway companies, and discusses the road rates schedule put forward by the Yorkshire Regional Road-Rail . Committee as a suggested basis for national stabilization. This schedule, which was circulated by the Road-Rail Central Conference and tabled for discussion at an early Meeting, in London, :of representatives of the Central Conference and its regional committees, is an adaptation -of that which, under Mr. Wood's chairmanship, was formulated from his Proposals,. by the old Leeds-area committee of the now defunct Hauliers' National Traffic 'Pool, and put into operation. ••
Applicable to any class of traffic, it is based on a charge per ton-laden mile, with pins-• or minus. " weightage " according to Ale length of the haul, and provision is made for percentage additions to the basic. rate in special circumstances, as in the case of goods of large cubic capacity,.
Planned Coal • Rates Schedule 'Mr Wood, who is a member of a concern of coal distributors and who has business interests in the road transport industry, is a cia=opted member of the road panel of the Yorkshire Road-Rail Regional Committee. As chairman of the Coal Transport Advisory Committee, set up by the North-East Regional Transport, Commissioner (Major F. S. Eastwood), he planned the rates schedule which applies to the road haulage of coal in Yorkshire: and he was independent chairman of thOse Yorkshire ' committees which formulated road rates applicable tO the transport of bricks and of sand and gravel.
In opening his statement, Mr. Wood expressed thanks to Mr. Roger Sewill, Road Chairman of the Road-Rail Central Conference and national director of A.R.O."; for his recently published' pamphlet " The Future of Transport..". He remarked that Mr. Sewill's proposals, at least, show there is an alternative to nationalization or the
public utility corporation. He also refers, appreciatively, to the 10-point policy for the road haulage industry as ontlined by Major H. E. CrawfUrd, president of A.R.O.Mr. Wood said:—
I wish to thank Mr.. Roger Sewill for his thought-provoking pamphlet, " The Future 'of Transport." If it has done nothing more, it has stimulated the thought of the industry' to its future problems. That was obviously his aim, and his invitation to a discussion has brought forth quite a good deal of •opinion, of both criticism and approval. The purpose of the' proposals shows that there i an alternative to nationalization or the public utility corporation, which seems all that some people can suggest • as a suitable Organization' for the tiansport agencies of this country after the war.
• The "10 Points?' " Policy Approved
If it does no more ..than stimulate' thought on .post-war possibilities, the object of thememorandum will have been achieved. He, himself, will admit he has an open mind •on all 'these problems,so much so; that several doubts are ' gradually disappearing.. Major Crawfurd brings forth " 10 points,"and 'frilly, Constructively dontributessome some -good, practical and commercial sense. His breadth of vigion as to the future may be such that some may not fully understand until, of course, they have quite candidly considered the implications therein. All that is to the good. • Not for one moment do I intend to encroach into the arena of the politics' of the industry: it is however, quite time that the haulage industry exer7 cised a • commercial mind on its problems. The, user of -transport is prepared to pay proper market prices for haulage services, provided that
• haulage itself does not undercut its own reasonable rates of remuneration; otherwise, there is no basis whatsoever.
Industry, on the other hand, will not be dictated to by those who serve' it, and who, essentially, are servants. If . the manufacturer ceased to manufacture, would the haulier take his place.? No, because it is obvious he could not.
Haulage must always remember that, by and large, it is engaged by the' producer and distributor and, generally, by those who may be quite legitimately engaged in operating under a " C licence. Haulage, therefore, is fleece-' sarily a, servant, which should be properly remunerated.
The 'sooner the haulage industry.' realizes the whole problem is not one of self justification, but one of bringing a commercial mind to bear upon the . subject of selling its " wares," that is "'mileage," to a public whi9h 'prepared to pay for What it 'gets, the better.
• The aspect of road rates is,perhaps, the whale .crux of the po-st-war posi tion. It is to this feature that I especially draw attention, and I ao. from the "'ring side "—as an ancillary operatorand a hirer of transport.
The user is not, necessarily, concerned one iota with the profits of the industry on this or that line of traffic or direction, or even .in the equalization thereof, as between one haulier and another, • which my friend Mr. Sewnl is attempting to suggest for our consideration in his pa,mpliletl• That is entirely a domestic matter for the operator. At the same time, if the haulage industry itself is not Capable of fixing a " fah' float " in rates, then to every sport, even that one of cutting ratesand auctioneering them, will rea8ily come those Who wish to join and try their hand.
Some say that stabilization should be left until after the war. The proper' time 1 surest to have approached the subject was during the H.N.T.P.• days: the sands are. fast running 'out tor those who can see, and 7 fully agree with Mr, A. E. Sewell, the Rail Chair-. man of the Road and Rail Central Conference, that, should •a ."
take place in rates, then the post-war 'position, of the . industry will be infi
nitely' worse than in .pre-war days: If ever, a helpful sentiment was expressed.'
It was by Mr. P. Noel-Baker, some
time ago, when he. streSsed 'thg importance of road-rail talks, and v,,enT on •to add that "it would be a had state of Affairs if the various "forms of• transport went back to the system Of cut-throat competition."
-Immediate Action Necessary. There is no time to lose. The situation calla for immediate road-rail collaboration inexamination of the 'problemand to exchange views. If vehicles with licence permits on war jobs which Have ended, or will shortlir be coming to an end, be let loose on the haulage market, one can imagite the result.Already; regional .rates which have been established, and which, have, been readily recognized by the user, are being undercut by " A " and " B " licensed hauliers to an extent, in some cases, of up to 25 per cent,. The immediate requirement is, therefore, the settlement 9f rates on a stabilized basis, even if that be only • on the authority of the industry itself, in collaboration with rail interests.
No one can deny that, during these bitter and trying days of war, the rail'whys have done a magnificent job of work. Many are the traffics which, naturally, will. be theirs in the future, although, -if the railways are to serve the trading community economically, theremust be 'many alteration. These
would include the reconstruction of loading and discharging wharves and termini, so as to make possible quicker and far cheaper and efficient transhipping. This would be necessary in order that railborne traffic may take a nearer place to the services which road transport, by reason of its nature and its freedom, can readily give' to-day.
in the past, it has been my pleasure • to work closely alongside the railways.
• In 1928, when coal was required from Durham for the gas industry in the South and the Midlands, a greater job was done than road transport could ever hope to do. Something like 3,000 tons per day and every day were transported, and coke picked up and taken to the ports . for shipment. Wagon pooling, between railway and user, was immediately resorted to for commonuser purposes. Those who speak for road transport should .ponder on such points. Many operators in the road transport industry. are young in experience in its widest sense, and I look confidently to the close and frank collaboration of road and rail to solve the future problems of transport.
• In desperation to find. a 'temporary solution, some . are suggesting the adoption of railway .rates,the reason given being that they are the only rates established. Yes, agreed they are established., but for rail and not for road. The railways having a monopoly in the past, averaged their charges in Order to entice more traffic of diflerenit kinds's° as to obtain the maximum load per train. It encduraged new
• industries, and not always those which required it financially.
When it was pointed out that the adoption of railway rates would mean, for certain classes of goods on short hauls, an increase in some cases from an existing rate of 10s. per ton to 22s, ton for 10 miles, the reply was that it would earn extra money for the haulier, That is not the ,mentality
which will solve the -problems facing the industry.
One hears much of a cost-plus basis: 1 am still wondering whose " cost," and whether there will he a " plus " for some and a " minus " for others. It may apply to one concern but it cannot, except by estimate, apply to all.
What seems to have been forgotten is that, when a motor vehicle is loaded, it matters not whether the direction may be " sparse" or " dense "—there is the same cost. It is for the user, himself, to spread his transport costs over his own products.
Fcirgettinglhe Return Load Factor
The return load factor wants forgetting. Do I have a contingent interest in the express engine that takes me to Kings Cross? Do I say "Ii the train is such a size the rate must be less or more? " No, all I am concerned with is the price per laden-mile at which the railway will convey me, whether it be " single" or "'return," and it is my return load, not that of someone else. . It comes down to a commercial rate which I am prepared to pay for the conveyance, according to my requirement, as against any other form of suitable transport; otherwise I should not go.
As a former • chairman of the I-I.N.T.P. Committee in the Leeds area of the North-eastern region, I remember that as'a committee we were faced with all these same problems of rates. One had to be logical commercially, and even if every trade was selling its goods under Government control or, otherwise, they must, as users or producers, put themselves in a sensible commercial relationship with their potential customers; whoever may be paying the bill does not matter. The proper attitude, surely, is that the charge must be, acceptable to the reasonable trader, but if a rate for a longer distance be
'less than for a shorter journey for the same class of goods, then we come back to the auction mart. .
A schedule was set up and it operated for over 12 months. During that time no complaints were received from any Government Department, private trader or, haulier. In fact, since then many haulage concerns have kept it
in use. Moreover it is gratifying to find that recently, in at least one area of the Ministry of War Transport's Road Haulage branch under the new scheme it has been adopted, with certain of its conditions.
The schedule has since been instituted, with slight modifications, by the Yorkshire Regional Road-Rail Committee,. and, as most operators Will know, it has been circulated by the Central Conference for the consideration by the Regions as a whole.
The sponsors of the schedule do not dogmatically maintain that any level of progression is correct. The chief thing is that the way the schedule is constructed is commercially sound, being simple and fair to both user and operator. • It is one that any haulier can use almost as a ready reckoner in the Carriage of goods. In the principle of" weightage," it is very similar to the method adopted in• formulating rail rates, but in a different tempo.
Such heavy materials, as coal, sand, gravel, bricks, steel, etc., in fact all goods in the railway's lower classifications, should, -for long-disLance hauls, revert to the railways or be subject to local add short-distance traffic rates, just as •applies in Yirkshire to-day. That leaves us with .general goods which can be graded or classified on a basic rate. This rate would be subject, as the case may be, to a special percentage increase by reason of cubic capacity or other considerations, according to the circumstances, provided such goods have been graded a,ecordingly by the 'Road-Rail 'Conference,