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THE FINAL CUT

20th September 1990
Page 7
Page 7, 20th September 1990 — THE FINAL CUT
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Which of the following most accurately describes the problem?

• Anyone out there who thinks they can see light at the end of the haulage tunnel had better get ready to duck the train coming in the opposite direction.

Commercial Motor's latest survey says it all: fewer than 20% of the hauliers we spoke to expect any relief from the recession much this side of 1992 (see pages 8 and 24).

Times were tough enough in 1974 and 1980, but many hauliers reckon that the market now is the worst it has ever been. We're not too surprised by the number of failures in the over-subscribed parcels sector, where over-geared and under-funded newcomers are finding to their cost that the market is not the friendly place it seemed during the boom years. But even seasoned haulage campaigners are selling trucks and looking for a way out. Which begs the question, what's gone wrong? In a word, rates. A couple of years back truck sales were going through the roof, the construction industry was buoyant, retail sales were up — and road hauliers were merrily engaged in that traditional pastime of cut-throat rates slashing. The fledgling National Hauliers Association (see profile, page 58), has its roots in the tippermen's struggle to win viable rates. Yet at the height of the tipper famine CM noted that the tippermen were involved in a rates war that would do credit to a recession.

Is it any wonder, now that customers are trying to hold down transport costs, that nearly half of the hauliers we surveyed are prepared to run trucks at cost, simply to keep their wheels turning?

We wish the NHA well, but wait to be convinced that it will succeed in fixing a credible rates structure where the established groups have failed. Not even the RHA is big enough to dictate terms to transport users, and for the FTA, despite recent overtures to the hire-and-reward sector, many of its members are primarily seen as users rather than providers of transport, so it could be argued that they benefit from low rates.

Fixed tariffs, which have been experimented with in France, would certainly give everyone a breather from the boom/bust cycle, but the present Government would hardly be likely to support such a move. In any case, it could only offer a temporary respite, even if it could be made to work fairly.

In the long-term those hauliers who survive the current slump will have to accept that rock-bottom rates only keep fools busy. Yes, of course, it's hard to hold out for that little bit extra when the monthly payment falls due on the tractor, but doing it at cost can only prolong the agony of death by a thousand rates cuts.

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