wn-account operators
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by Frank Woodward
IFTY years since the words account" were first used -eference to transport by 5 and manufacturers.
932 Lord Salter was apd chairman of a conferet up by the government day to inquire into the ility of introducing carcensing in Great Britain. Salter Conference recom'Vans formed the basis of )ad and Rail Traffic Act vhich introduced A, B and rier licences for goods is and these Regulations Jed in force up to the ..iction of 0-licences by 3nsport Act 1968.
0-licence was issued for: f a ct u rers and traders g goods on road vehicles r account only."
history of the delent of the UK road trans
port system and policies should be read by everyone who holds managerial responsibility in transport and distribution. It will be found that in nearly 50 years of discussions at Westminster, and after all the many different coloured papers published on government transport policies, very little has changed.
In 1928, a Royal Commission was appointed with the following terms of reference: "To take into consideration the problems arising out of the growth of road traffic and ... to report what measures if any should be adopted for the better regulation and control."
These words have been repeated in almost every inquiry since that date — Salter, Beeching, Geddes, Foster, Wood ... and all the other investigations into the best way to operate the various modes of moving goods within the UK.
Own-account 1983 Even though the C-licence was buried with the introduction of the 0-licence by the 1968 Transport Act, the principles behind the Salter decisions for the Clicence are still behind all current licensing legislation.
One of the main recommendations of the 1965 Geddes Report, and of Barbara Castle's 1967 White Paper Transport of Freight was: "The abolition of all restrictions ... on the work for which a lorry can be used."
This meant that own-account operators would be free to offer their services for hire and reward in competition with the hauliers which had previously held the privileged A carrier's licence.
There was no mad rush to take advantage of this freedom. A few of the larger industrial transport operators expanded their operations by offering a service to other companies within their own product industry, but the own-account transport operator has remained very much concerned with moving its own company product to its consumer outlets.
A survey in 1978 showed that the proportion of tonnage carried for hire and reward by ownaccount operators was less than three per cent, the reason for this low figure being that such activity was in conflict with their own company's requirements, which at all times take first priority.
The 1974 Traffic Act amended the 1968 Transport Act and in effect reinstated the C-licence recommendation of Lord Salter by introducing a restricted operators' licence, which could be applied for if an operator did not intend to use his vehicles to carry goods for hire and reward, or in the simple language of the Thirties the conditions of the Clicence.
Further confirmation of separate rules for operating the haulage and own-account fleets came with the Goods Vehicle Operators (Qualifications) Regulations 1977, which exempted all the own-account operations from the need to employ a manager who fulfilled the requirements of professional competence, or using Barbara Castle's language, who held a "transport manager's licence".
All such operations had the option of applying for a restricted operators' licence, which did not require the employment of a person who held a Certificate of Professional Competence.
Had all own-account transport taken this option, within the UK two thirds of the 125,000 operators' licences now issued would have been "restricted", with responsibility for over 350,000 out of the total of 500,000 vehicles issued with an operator's licence.
Most responsible own-account operators did not take this option and applied for a full standard licence with the requirement to employ qualified management, but at the same time had no intention of entering into competition with the haulier.
I believe that this action was initiated by transport management who, as responsible operators, did not wish to see the image of "second class" transport management being built up within the industry.
Haulage 1983 The old image of the haulier was one of a flat truck carrying different goods for different customers and to different places each day. "Tramping" was the word used to describe this activity.
In the UK today there are still many successful one-man onetruck businesses doing just this. Recent statistics show that 85 per cent of hauliers in the UK have fleets of five vehicles or less; 54 per cent have only one vehicle.
These are the "real" hauliers who provide the movement of goods on an "as required" basis, and no own-account operator would want to compete in this field.
At the other end of the haulage industry, 0.2 per cent of hauliers have fleets of over 100 vehicles, but within this sector are 10 per cent of all the vehicles employed in the haulage industry.
It is in this area of transport activity that major changes in operation are taking place, and are having an effect on the ownaccount sector.
The larger haulage companies in the UK are now becoming more closely associated with moving specific industrial products than with general haulage. Many are now doing the work previously carried out by a transport operation owned and administered by the company making the product.
Freezer produce, fresh food, clothing, motor parts, vehicle deliveries, computer and electronic equipment and many other specific products are now being carried by the haulage sector in vehicles designed around the requirements of the products, the manufacturer and the consumer.
These vehicles, the drivers and the management of the transport operation are replacing the own-account direct involvement, and I have named this new and expanding area of activity own-account haulage, which may appear a conflict of terms, but the involvement of this new breed of haulier is so integrated with the needs of the industry it is serving that the operation would be of no use to any other industry.
What impact will this have on the remaining own-account operators? Will this changeover to employing hauliers for specific product industries dilute the many years of transport and distribution skills and experience built up within these industries?
The answers will emerge as the expansion of haulage into this area of industrial transport expands, but already there are signs of unhealthy competition. The charges made by the haulier are being reduced so as to remain competitive, and the service to the consumer is reduced to keep down costs.
Industry must be aware of the dangers in contracting out all the responsibilities for the movement of its products. Above all else, the level of service to its customers must be maintained.
The "haulier" has no greater skills than the own-account operator. Both sectors of the industry are charged with the same responsibilities — to operate their vehicles within the law with maximum safety and regard to the general public, and to provide an efficient customer service at an economic price.
The own-account sector is, and will always be, the most important section of the transport industry. It is "industry" which produces the consumer products and provides the essential services needed within the consumer markets. Without a healthy own-account transport operation, the level of efficiency within the haulage industry would suffer.
The own-account sector has contributed to the developments in vehicle design, environmental considerations, route planning, control of vehicle legislation, training of management and operatives and many other activities, all of which have benefited the transport industry and its users.
The disciplines and responsibilities of having to satisfy the producer and the consumer have been responsible for developing transport management's ability to operate within any section of the industry. With the continuing trend of companies to contract out the movement of their product, it is essen
tial that the "management" of this activity be retained within the industry, so as to ensure that the high standard of service expected by the consumer is maintained.
Own-account — the future The pattern of distribution is constantly changing. New consumer markets, new production methods, warehousing needs, packaging, product delivery — all affect some part of that line between producer and consumer, and no amount of advanced technology will remove the need for final delivery of the product to the consumer.
The role of own-account operator over the past 50 years has been to ensure that the goods (or service) of his company are delivered to the customer in a usable condition.
The transport manager was fully acquainted with both ends of the distribution chain — the problems of production in meeting the demands of the consumer, and the demands of the consumer for the delivery a product to meet his req ments.
One of the dangers of involvement of the haulage tor in this activity is that a flict of priorities may which has nothing to do wit customer that haulier contracted to serve. Deci! may be taken that are not i interests of the customer.
For those companies co ering handing over all the t port and distribution of theil duct to the haulage sector essential that the principli own-account transport in ment be upheld.
The control of the distrib line must remain within thE duct industry, and deci taken must ensure cust satisfaction.
The skills and expertise ( own-account transport mai should be retained withii business and used to contr specialist haulier and his vices so as to meet the neE the company and its custon