More About Tonnage Rates ft lunicipal Hire
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Solving the Problems of the Carrier
row the Rates for 6-ton Loads May be Arrived Comparatively Small Features Which Greatly Influence the Margin of Profit
IN my article in last week's issue of " The Commercial Motor" basic figures were given by which rates for loads of from 1 ton to 8 tons inclusive could be assessed, and data relating to Grade I, II and III Areas were set out. Using figures taken from those schedules, and calculating on the basis of a day's
work for a vehicle, I showed how to arrive at rates for 2-ton loads over leads oil, 4, 6, 9, 15, 20 and 30 miles. Taking the rates for these particular lead-mileages as a basis, I made up a table of rates of leads of from 1 to 45 miles simply by filling in the gaps. For leads of over 30 miles an average speed of 24 m.p.h. was taken, and the additional rate for each mile lead thus calculated showed that an increase of 9d. per ton was necessary. The method of arriving at these rates may again be shown, this time assuming 6-ton loads.
According to Table IX, reproduced, from the previous article, the revenue from the use of a 6-tonner in a Grade III Area should not be less than 5s. 8d. per hour plus (mark the " plus ") 101d, per mile. These amounts are calculated on the basis of to-day's costs-current tyre prices and mileages, and additions to drivers' wages.
When I dealt with the 2-tonner I assumed, as is fair and reasOnable, that it would be practicable to complete eight round journeys per day over a one-mile lead. With a 6-tonner it would be safe to take seven journeys per day as an average. On that basis, and allowing eight hours per day, one journey takes 1 1-7 hours, the charge for which, at 5s. 8d. per hour, is, roughly, 6s 4d.
To that must be added the charge for two miles (one mile out and one mile home) at 101d. per mile, which makes the total charge Ss. 04d., which is equivalent to Is. 44d. per ton. As to that figure I shall refer to it later. It should be noted that the revenue is £2 17s. 11d, and the net profit, approximately, 9s. 8d.
It is probable that it will still be possible to complete seven journeys per day when the lead mileage. has risen to three, after which it may become difficult to run so many trips. Assuming seven journeys per day for a three-mile lead, the charge per journey, for time, still remains at Os. 4d. The -mileage charge is six times 101d., which is 5s. 14d. The total charge is thus us, Rd. and the rate per ton 1s. 11d. The day's revenue will, at is. 11d, per. ton, be £4 Os. fld. and the net profit 13s. 5d.
Over a five-mile lead six journeys per day should be a practical average. That is 1 hour 20 minutes per journey for which the charge, at 5s. Sd. per hour, should be 75. 7d. Add 10 times 101d, for the mileage, and the total charge is shown to be 16s. lid., or 25. 9d. per ton to the nearest penny. The daily revenue is £4 19s. and the net profit 16s. 6d. Similarly, taking five journeys per day, over an eight-mile lead, the rate can be shown to be 3s. 91d., the day's takings 2.5 13s. 9d. and the net profit I9s. For a 12-mile lead the rate is 5s. 34d. and, allowing for four journeys per day, the revenue is £6 7s, and the profit £1 1s. 2. Over 16 miles the rate is 7s. id.; three journeys bring a revenue of £6 7s. 6d. and a profit of £1 is. 3d. A lead of 24 miles limits the number of journeys per day to two the rate will have to be 10s. 43d., which will bring in a revenue of £6 4s. 6d. and a profit of El Os. 90.
When There Is an Inadequate Return for Ultra-short Leads I have calculated these various figures for daily profit to demonstrate that there is inadequate return in connection with the ultra-short leads. The reason for this, of course, is that there is more time lost and wasted in running short leads, a factor which cannot be avoided, but which, nevertheless, does reduce the operator's profit.
In Table XI I have set down the rates as here calculated and, by filling in the rates for intermediate mileages in proportion, a reasonable schedule is the result. I have also calculated corresponding figures for vehicles in Grade I and Grade II Areas and have set these down, side by side, with those for Grade III Areas. I have, in all three cases, artificially increased the rate for the one-mile lead so that the work over that distance shall show a minimum reasonable profit-I do not regard 9s. 8d. per day as sufficient in connection with the operation of a 6-tonner. At is, 9d. per ton the revenue will net profit 12s. 3d. be £3 13s. 6d, per day, and the There is an alternativetnethod of assessing -rates for work such as this, which makes provision in a different way for the effect of short leads. It is not altogether new to readers of these articles, for I have explained it several times in connection with short-haul traffics. The procedure is to take the theoretical figures, which I gave in the previous article, for all lead mileages and, having built up a schedule in that way, to make provision to cover the loss on short leads by adding what is called weightage. This is an addition of a few pence to the theoretical, rate, the amount being at its maximum for the one-mile lead, and diminishing gradually, mile by mile, until the limit of a 12-miles lead is reached.
Method That Is Used for Calculating the Basic Rate According to that method, a basic rate is calculated, taking into account the net time for the performance of any particular journey including terminals. No reference is made, when making this calculation, to any potential number of journeys per day, nor is any account taken of the diminishing average speed over short leads. The time for a journey is calculated as the terminal charge, and a fair average speed, such as would apply in any case up to a 30-miles lead, is taken.
To show how this procedure can be applied in the case of the haulage of road materials for municipalities, I will again use the time and mileage figures for a 2-tonner, operated in a Grade III Area. They are set out in Table IX: they are 3s. 9d. per hour and 7d. per mile.
It has already been agreed (see previous article) that a fair allowance for average terminal delays in the case of chute loading and tipping of a 21ton load is 15 minutes. An average speed of 15 m.p.h. can be taken for this class of work, especially over short leads where high speeds are rarely possible at any time throughout the journey. Using these figures, first calculate the terininal charge per ton. The rate for 15 minutes, at 3s. 9d. per hour, is Md. That is for 2 tons, so that the terminal charge should be , 51d. It is quite accurate enough. to put down Ed. for that as, after all, we are making only a rough estimate in taking 15 minutes as the time needed for terminal delays.
For each mile lead the vehicle runs two miles. At 15 m.p.h. it takes eight minutes to travel that distance, thus involving a charge of 6d, for time, to which must be added Is. 2d. for two running-miles, .so that the total mileage charge becomes is. 8d. or .10d. per ton, as set down in Table XII.
By adding the terminal charge to the mileage charge the net rate is reached. Thus, for a one-mile lead it is 6d. plus 10d. That compares with the rate of 3s, 2d., quoted in Table X and, is deficient because no provision is made for the loss in time and depreciation in profits, which are inseparable from these ultra-short journeys. In order to bring our theoretical figures more nearly into line with practice we must, therefore, add a weightage of is, 8d. to the theoretical rate for the one-mile lead. The resulting rate is 3s. as compared with &s. 2d.
At 11 miles the theoretical rate is 9s. 8d. compared with Os. 9d. in Table X, so that only id. needs to he added to the theoretical rate, and that terminates the weightage. Actually, it may be said to start at 1d. for an 11-miles lead and gradually to increase as the distance diminishes until it reaches the maximum of is. 8d. at the one-mile lead. In Table XIII I have set out similar figures applying to the case of a 6-tonner in a Grade I Area.
It is important to emphasize that all the figures in this, and the previous article, apply only when the load is put on by chute and tipped off at its destination and there is only one point of delivery. It is necessary to make provision for such other conditions as often arise to effect the cost to the haulier, For example, in the case of a 2-tonner which is unloaded and loaded by hand, an addition of at least -11 hour will be required, making hour altogether for .terminals. The time charge for a 2-tonner is 3s. 9d. per hour, which means that, approximately, 2s. (1s. per ton) extra should be added for the additional time involved.
In the case of a 6-tonner, 14 hours extra would be needed if the vehicle has to be loaded and unloaded by hand. This, in a Grade II Area, is equivalent to an extra charge of 9s. or 1s. 6d. per ton.
Where the load has to be shovelled oft, as often happens when road stone is being deposited in heaps by the road side, there should be an addition of 6d. per ton to cover that. When carrying tarmacadam it is usual to add not less than 3d. per ton. S.T.R.