Freight rates climb by CM reporter
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to beat price spiral
EAVY INCREASES are being Laced on freight rates in a 3,sperate bid by operators to eat soaring costs. But this teve is a big gamble for the auliers as they are running ito strong resistance from leir customers and face posble cutbacks.
Leading the price rise barge this week is the Abereen sub-area of the RHA, there members will be applyig a 15 per cent increase to ieir rates from today, August The operators received their ew rate structure last week nd have been advising their ustomers of its implementaIon this week. Mr Sandy :liristie, of Surefreight Ltd, Did CM that the 15 per cent gcrease had been arrived at Her a survey of the members' osts.
The survey showed cost inreases varying from 8 to 20 ler cent and did not include rages, which have been 'egged until November.
leplacement costs
Mr Christie said he doubted f those who showed an 3 per :ent increase had taken into iccount all of their costs and vhether or not they were naking allowance for replacng vehicles at a higher charge .han they had been purchased a. The rate for a maximum ..:apacity artic is increased 'rom £6.60 to £7.50 per hour, Ind the general goods rate "rem Aberdeen to London is ncreased from E9 to £10.45 a The minimum extra charge for a second man is £2.60 per hour; the four-wheel tipper rate has been increased from £4.60 to £5.30; and six-wheel tippers go up from £5.70 to £6.60.
The North West (Manchester) area of the RHA advised its members to seek an 8 per cent increase in rates last week. This followed an investigation of increased costs among its members.
Mr John Entwhistle, area secretary, said 8 per cent was the average extra cost which members were now paying in comparison with December. "We have taken into aCcount all the relevant factors and this is •the figure that is most common in this area."
In the Northern area of the RHA members have been told to get an increase of between 8 and 12 per cent where they can. But Mr Dennis Le Conte, secretary, said that things were very slow.
"Against that sort of background our members have to ask themselves if they can afford to put up their rates and risk losing business," he said. "It is a very difficult situation."
The East Midlands area are urging their members to keep a close watch on rising costs and to apply increases where possible. Secretary Mr Bill Morton said that the climate is not conducive to getting in creases and business is very quiet at the moment.
Scottish RHA have backed up their subarea colleagues by telling their members to look at their rates since costs have been rising by between 12 and 15 per cent.
The West Midlands believe that costs have risen some 8i per cent. Mr Jack Parnell, the secretary, said that it was difficult to advise members on a set rate of increase since it depended very much on the individual haulier and when they had last put up rates. "We tell them to go for an increase which gives them an adequate return," he commented.
The Western area of the RHA will be meeting in two weeks' time to consider the issue. Secretary Mr Jim Cox said that they are hoping for "a small increase" but that they are running into strong resistance from customers. "Generally where increases have been applied for we find that the companies are cutting back on business.'