W. McMillan urges rate increases: express carriers set June 1 date
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• In a letter to RHA members Mr W. McMillan, the Association's chairman, has urged them to seek rate increases of up to 5 per cent. This is in accordance with the price restraint initiated by the CBI in 1971. It is in spite of an average cost increase of 121 per cent during 1971 and the subject of a CAPS report (CM April 7).
The chairman points out that the Association's undertaking to the CBI does not expire until the end of July this year. The RHA has discussed the level of increases with the National Freight Corporation in the hope that a common policy to both the public and private sector could be adopted. Mr McMillan urges immediate discussions between hauliers and their customers to secure the increases. • At the recent meeting of the express carriers national functional group of the RHA it was decided that express carriers will have to increase their rates not later than June 11972. A report prepared for the RHA by the Centre for Interfirm Comparisons shows average cost increases of 121 per cent during 1971 and an independent study made of express carriers' costs has confirmed this figure.
The precise amount by which members of the group will have to increase their rates will depend on individual circumstances. Although members will do everything possible to keep within the 5 per cent maximum of the CBI price initiative it may not be possible to hold this figure for seriously unprofitable routes and traffic.