Special Rates Required for Hire of Horseboxes
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CONTINUING my remarks on horsebox operation and at the same time reminding readers that this article is part of a series in which I am criticizing some schedules of haulage rates that have been put before me for that purpose, I confirm, as stated in the previous article, that horsebox work is of a special nature and calls for careful consideration.
Table VII embodies figures which were published with the previous article as Table VI. In that were given the running costs and standing 'charges of horseboxes. Now I add figures corresponding with the time and mileage rates which are a component part of The Commercial Motor Tables of Operating Costs.
I have taken the same basis of calculation, as that used in our Tables, that is to say, I have added approximately 50 per cent, to the standing charges to arrive at the rate per hour and not less than 25 per cent to the running costs for the rate per mile. I should emphasize, for the benefit of those not familiar with the use of these figures, that the total operating cost of any vehicle engaged upon a particular journey is calculated by taking the total time occupied and assessing that on the basis of the appropriate cost per. hour, and adding the running cost for total mileage at the figure for cost per mile.
It is most important that this be understood, and particularly that no reader should imagine that these figures can be used separately. It is erroneous, for example, to assume that the total cost is either the standing charge per hour Multiplied by the number of hours, or the running cost per mile multiplied by the number of miles. The bare operating cost is the sum 31 these two factors. In the same way, the minimum price . which must be charged fOr any particular job is 1340 calculated by taking the rate per hour for the total time occupied and adding the rate per mile for distance.
Table VIII is the schedule which has been put before me for comment and criticism. My criticism is directed chiefly to the rates for carrying one, two or three horses. There seems to be a reasonable margin in those relating to the conveyance of four horses.
I consider that a preliminary basis of "up to 40 miles" is too great. At a pinch, if circumstances were favourable, the rate quoted might be satisfactory for a 40-mile lead, although the margin of profit is, even then, meagre. For shorter hauls there would be an insufficient allowance for terminal delays and if, therefore, a haulier who was expected to work to this schedule were so placed that most of his business comprised short hauls, he would be running at a loss. I suggest as a more rational schem3 that which I have set out in Table IX, in which the first division runs up to a limit of 10 miles.
Now to consider the actual rates. Assuming that one horse is carried on a 2-ton lorry-and this is rnore than likelyi-the rates of 3s. 8d. per hour plus 5d. per Mile quoted in Table VII should apply. Taking half an hoer to be sufficient for terminal delays-there are more of these in connection with horse transport than, with Most . other loads-and allowing three quarters of an hourto run the 20 miles of the 10-mile lead, that is a total, of 11 hours, for which the time charge is 4s. 7d. Add 20 Miles at 5d., totalling 8s, 4d: The aggregate is 12s. 11d. which is is. 4d, per mile, as against the 1s. per mile quoted in Table VIII.
• After allowing in this initial calculation for terminal
delays, it would be satisfactory from the profit-making point of view to charge '1s.Id. per. mile lead extra-.. That 1s. id. is calculated in this way: each mile involves two miles of running and two miles at 54. per mile cost 10d. for running alone. Fiirtherm' ore, there is the time taken in running those two miles:' for that L have assumed four minutes. Four minutes at 3s. 8d. per hour are equal to 3d. and that sum added to the 10d. gives Is. 1d. per mile lead.
As, however, My friends seem to think it necessary to effect reductions as the distance increases, 1 hare assumed a figure of 1s. 2d. for each :mile in excess of • 10, rising to a 40-mile lead;'Is. id: for each Mile in excess of 40, rising to an 80-mile lead, and .1s. per mile. in excess of 80 miles. The figures in the rest of the table have been calculated in the same way. To show how I justify charging only 1s. 1d. per mile lead, in the case of a three-horse box, for every mile over 80 miles, when in actual fact the rate per mile should be not less than
is. I have made the following calculation:
Assume a 100-mile lead, that is.to. say, a journey of 200 miles. Take three quarters of an hourfor terminal delays (three -horses)' and 71 hours for running. The total is eight. hours. I will assume that the three horss are carried on a 3-tonner. Eight hours at 4s. equal 32.s. and 200 miles at 6d, ,100s. The total of 132s. is made up of 10 miles charged at .1.s. 8d., 1,6s. 8c1..; 30 miles at is. 6d., 45s.; 40 miles at is. 3d., 50s., and 20 miles at Is. id., 21s. 8d.: The grand total is 13,3s. 4d.
In making the amendments-to-the rates per hour, per half day and .per day quoted in these tables, I have assumed that on jobs for which the charge is according to time, the distances will be short andthe average mileage per hour not in excess of six. In doing so,' however, I have taken into consideration the fact that the approPriate size of vehicle Is not alwayS' used: For. the hourly. rate for carrying one horse, I have taken one hour at 3s.:. 8d., plus six Miles* 5d." (2.s. The total is 8s. 2d. and the ;rate, Suggested! 6s. For two horses, the rate; if they were always carried in a two-horse box, could be 6s. If transported in a threehorse _box, however, the charge should be calculated at 4s. for the honr, plus si tinieS 6d. for the mileage (36.); total, 7s. I have averaged those five figures, 6-s. and 7.S., and suggest a ,rate of 6s, 6d per bOur; . A-similar procedure has been followed in the, case of a three-horse box. The rates for a four-horse.box are those actually suggested by my friends.
' .In accepting contracts at hourly rates, care must be exercised to stipulate the:mileage,.so asto Make 'sure 'of a profit.