Rates review urgent, says RHA

20th September 1974, Page 71

20th September 1974

Page 71

Page 71, 20th September 1974 — Rates review urgent, says RHA

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by CM reporter AN AVERAGE increase in operating costs in 12 months to July last of more than 20 per cent is cited by Mr Ken Hatcher, national chairman of the Road Haulage Association, in a letter to members urging a thorough review of costs followed by such increases as are necessary to operate economically.

Allowable cost increases can still be passed on in increased charges under the Price Code, says Mr Hatcher, and during recent months everything used in road haulage has risen sharply. While it might seem to be in the national interest' to keep rates as low as possible it would be quite against that interest for hauliers to commit commercial suicide, he points out. The 20.7 per cent increase in costs is as the result of a survey just completed by the Association's commercial committee.

The increase quoted by the RHA is, of course, an average, some operators will have experienced even greater increases in costs. For instance, CM Tables of Operating Cot.s. for 1974 which reflect increases to May 1, this year, show an increase of 22.7 per cent to operate a 32-ton .artic unit running 1,000 miles a week. For a 1-ton diesel van operating 300 miles a week the increase is 12.78 per cent, according to the Tables.

Taking into account price increases since May I, the probability is that even these percentages have already been exceeded.