Charging for Bulky Loads
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"The Commercial Motor" Costs Expert Deals with Inquiries from Readers, One of Whom is Concerned with the Transport of Hay : The Maximum Safe Load of this Produce on a Long-wheelbase 2-tonner is Only l Tons and Special Rates are Required
THIS week rpropose to deal with some inquiries. The first comes from a small operator, an owner,driver 1 should guess, although he does not say so in his letter. He is located in an agricultural district and the number of hauliers in the area is so small that until recently the competition he had to meet has been negligible. He says that he has a B licence for general goods up to a 25-mile limit and a permit to carry turf for which he is allowed to go to any distance. The journeys with this traffic, he states, cover sometimes 100or 150-mile leads.
The average weight of turf as grown in his district is about 30 cubic yards to the ton. He uses a 2-ton petrol-engined long-wheelbase vehicle, and works out his costs to two decimal points, allowing only a minimum amount of profit. He asks me if i could assist him in calculating-the price per ton or per cubic yard for carriage and adds that his reason for inquiring is that another operator is cutting his price to such an extent that he is sure no profit can come of it.
Could I also tell him, he continues, what he should charge for carting hay and straw, etc., distances of 5-15 miles. The greatest difficulty with this type of traffic is the time occupied in loading and unloading. The maximum load of hay consistent with safety is 1 ton 5 cwt., and straw 1 ton 8 cwt.
There are two points I would like to comment upon before commencing to deal with the inquiry itself. The first is his claim that he calculates his costs to, as he puts it, two decimal points Frankly he is wasting his time; no one can calculate costs of operating motor vehicles with that degree of accuracy.
Loading and Unloading The second is that although he tells me that the principal difficulty is loading and unloading times, he offers me no information as to what those times arc. However, we can, as it so happens, manage without that information and still give him a clue to the prices he should charge.
The method T recommend is that which is nearly always applicable, even when some of the basic information is absent, as in this case. It comprises the use of the time and mileage tables set out in "The Commercial Motor" Tables of Operating Costs. In this case the appropriate amounts in the case of a 2-ton petrol-engined vehicle are 55. 5d. per hour and 90. per mile.
In assessing the time for which he is to charge, the operator should include the total time talten on the job, including loading, travelling, unloading and returning. In the case of the 100-mile lead carrying turves, assuming that the job could be done just inside an 8-hour-day, the charge should be, for 8 hours at 5s. 5d., which is £2 3s. 4d., plus that for 200 miles at 91d. per mile, which is £7 14s. 2d. The total is the sum of these two amounts, namely £9 17s, 6d., which is equivalent to £4 18s. 9d. per ton or 3s. 4d. per yard of turf. In my view the charges are too high to be economic. The buyer, I should think, is likely to he looking round far a source of supply much nearer than 100 miles to have his transport charges diminished accordingly.
Travelling Time As regards the hay, assuming a lead of 10 miles and that tha total lime for loading, travelling, unloading and returning is 3 hours, the charge is at the rate of 3 hours at 5s. 5d., which is 16s. 3d., plus for 20 miles at 91d., which is 15s. 5d. The total is thus 313. 8d. Because of the light weight of this material, the full load comprises only 1 ton 5 cwt. and the rate per ton is thus 25s. 4d. to the nearest penny.
These charges are too high: the value of the commodity is insufficient to justify them. The truth is that the vehicle is too small. A 5-tonner would be more satisfactory, and it may be as well for me to set out the figures again, assuming the use of such a vehicle. The time and mileage figures, as taken from the Tables, are 6s. 4d. per hour and 111d. per mile, that is for a petrol-engined vehicle.
In the case of the turves to be carried 100 miles, I shall assume that 9 hours is sufficient for the time involved per trip. That is one hour more that was allowed in the case of the 2-tonner. Nine hours at 6s. 4d. amounts to £2 17s. and 200 miles at 111d. to £9 '7s. 6d. The total cost is £12 4s. 6d.; which is equivalent to £2 9s. per ton, compared with the £4 18s. 9d. on a 2-tonner.
As regards the hay, assuming a full load to be 3 tons and allowing 4 hours as the total time involved in a 10-mile lead, the charge should be for 4 hours at 6s. 4d., which is £1 5s. 4d., plus 20 miles at hid., which is 18s. 9d. The total is £2 4s. Id.. and the rate 14s.-9d. per Ion.
Now assume that this haulage contractor is operating an oil-engined 5-tonner and not a petrol-engined machine. The recommended time and mileage rates for a 5-ton oiler are 6s. 6d. per hour and 91d, per mile. For the 100-mile lead carrying 5 tons of turf, the charge is made up of 9 hours at 6s. 6d., which is £2 18s. 6d., plus 200 miles at 91d., which is £7 18s. 4d. The total charge is thus £10 16s. 10d., which is equivalent to £2 3s. 4d. per ton, as against-2 9s., the minimum rate for a petrol-engined vehicle. • So far as the hay, is concerned, and assume that he can load 3 tons, the figures for a 10-mile haul become 4 hours for time. which at 6s. 6d. is £1 6s., plus 91d. per mile for 20 miles run, which is 15s. 10d.; total £2 Is. 10d. or I3s. lid. per ton, as against. 14s. 9d, per ton with the petrol-engined vehicle.
The operator can exploit the advantages involved with the oiler in two ways. He can charge the rate for a petrolengined machine and pocket a little extra profit. (I should add that he is justified in taking that course, because he has earned the.right to it by having the enterprise to buy the more expensive vehicle.) Alternatively, he can cut his charges down to the figures just quoted in respect of the oiler and get the better of his competitor.
My next inquiry came from a local, as distinct from a national, hauliers' association, evidently .a collection of -.hauliers who arc trying to get together and come to agree-, merit on rates. They are looking forward to the time when they will be free to take traffic well over the 25-mile limit.
. Foiled to Agree
They ask me to state the minimum rates for haulage over distances above 10-50 miles and over 50 miles for vehicles carrying "4 tons, 8 tons and 12 tons. The mileage would be 500 per week.
I am not quite clear why this inquirer asks for charges for distances to be from 10-50 miles and-over 50 miles. and in order to give a comprehensive reply I have calculated the rates and set the figures down in Table 1. The beas,:s upon which this schedule has been built are the time and mileage charges from the Tables. 1 am assuming that all the vehicles are oilers and the charges should he built up thus: for the 4-tonner, 6s. ld. per hour plus 81d. per mile; -8-tonner, 7s. 10d. per hour and Is, Id. Per mile; 12-tonner, 9s. 8d. per hour and Is. 41d. per mile..
I deal first with the 4-tonner. I assume that the terminal delays average 4-hour at each end, that is 1 hour per journey. I am also going to assume that the 20 miles involved in a 10-mile lead is also covered in I hour. The total time for a 4-tonner to deliver to a point 10 miles away and return is therefore 2 hours and the charge should be made up of 2 hours at 6s. Id., which is 12s, 2d., plus 20 times 81d. which is 13% 9d., giving the total charge of £1 5s. I 1 d.. which is 6s. 6d. per ton. For each extra 5 miles lead there must be added a charge for the 20 minutes to run the extra miles, which is equivalent ' to 2s. For the mileage of five each way, 10 miles at-81d. take 6s. 101d., so that the total increase in the charge for the 5-mile addition to the lead is 8s. 100., which is approximately Is. 9id. per ton.
I have calculated the minimum charges to be made in connection with the use of this 4-tormer starting at a lead of 10 miles and continuing up to a lead of 100 miles. I must emphasize that the rates thus calculated are minima and subject to additions to cover driver's subsistence.
I have followed the same procedure in Table II. which embodies calculations relating to the use of an 8-tonner.• I start in the same way and I am going to assume in the first place that . the terminal delays are /-hour at each end, making. 1 hours per journey. It will not he advisable to reckon on the 20 miles travelling involved in a 10-mile lead to be run in 1 hour, as that would necessitate travelling for a portion of the time in excess of the legal speed limit. • I must take 11 hours for that.
The total time for the 10-mile lead is 3 hours. The charge for time at 7s. 10d. is fl 3s. 6d., to which must. be added the cost of 20 miles at Is. ld.,per mile, which is fl Is. 8d., making a total, for that journey of £2 5s, 2d...
The figures in Table HI are calculated in the same way.
S. T,R.