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DIRECT EXPORT By P. , tM C I:It e E k . ingrtm'

21st February 1958
Page 49
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Page 49, 21st February 1958 — DIRECT EXPORT By P. , tM C I:It e E k . ingrtm'
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Which of the following most accurately describes the problem?

Offers Cumulative Benefits

An Operator Who has been Running Regularly to the Continent for a Year, Carrying 50 Tons a Week, Gives Valuable Advice to Intending Entrants to International Haulage

"Hauliers should form groups and every group should specialize in the direct export of goods from an area in this country to an area on the' Continent.

" Active co-operation between the groups would then enable a service to be provided to all parts of Europe with the maximum eincieney to meet the existing potential demand for door-to,door exports and imports and the inevitable expansion of ferry traffic when the European free. market is fully established."

SINCE January, 1957, when Howard Tenens Services, Ltd., Caldwell Estate, Nuneaton, started their service to the Continent, the quantity of goods exported direct has increased to about 50 tons a week, compared with an average of 300 tons a week packed for export in the depot. Mr. N. J. H. Laws, general manager, who made the comments quoted, based his opinions on a detailed knowledge of export and shipping problems.

A member of a large group of cornpanies with interests in a wide variety of export projects, the concern operate some 12 semi-trailers, of which five are regularly employed for direct export.

Documentation Varies

Operational problems, particularly those related to documentation and local conditions, vary from country to country. Mr. Laws believes that economic working will depend largely on the interchange of traffic between groups according to the individual areas covered. He emphasizes, however, that the personal approach is even more important on the Continent than in this country and that a private enterprise company can take advantage of new opportunities much more readily than a State undertaking if the necessary facilities are available.

Goods exported by Howard Tenens cover an extensive range of commodities, including complete oil engines and spares, prefabricated buildings, machine tools and general goods, such as nylon stockings and shoes.

The decision to offer a direct export service from the Midlands and districts to the north-east and north-west of the area to all parts of the Continent was based on an expert appreciation of the financial and time-saving gains to be derived from the elimination of packing and transhipment and from drastically reducing overall delivery times.

A progressive increase in ferry. traffic was regarded as inevitable (which has since been substantiated by practical results) and it was envisaged that the introduction of the service would offset the proportionate curtailment of packing requirements.

Goods exported on semi-trailers comprise mainly high-precision mechanical equipment, urgently needed spares and so on. Through the cumulative saving provided by direct delivery, the cost is often favourable in comparison with export by orthodox means if packing, damage to the load and the cost of delays are taken into account.

Because freightage charges are based on the deck space occupied, a high weight-to-bulk ratio reduces tonnage costs, and relatively long overland hauls increase the advantage.

The freightage rate of the Atlantic Steam Navigation Co., Ltd., for ferry transport from Tilbury Docks to Antwerp is 5s. a sq. ft, for loads up to 25 tons. This normally represents a heavy charge compared with rates for "short sea" and "deep sea" cargoes shipped in conventionally loaded vessels, which are based respectively on weight and cubic capacity.

If, therefore, the distances from the starting point to Tilbury and from Antwerp to the destination are relatively short, the high ferry charge widens the gap between the bare transport costsof the two export methods.

_ Journey Time Halved

In contrast, the case may be cited of toads exported direct from Shrewsbury to Munich. A long road haul both in this country and on the Continent is involved, but the mileage could not be substantially reduced by using a port other than Tilbury. Loads are normally delivered in Munich in 3} days, whereas the conventional method requires at least six days.

If, however, the goods were produced in the Hull area and were destined for a centre near Hamburg, the advantage of dispatching the load from the local port to Hamburg would be decisive.

Althoughothe exiSting handicap of a high freightage charge • tends to limit direct export to the highest-quality goods and to " emergency " consignmerits, Mr. Laws believes that a wider range of engineering products could be included. A suitable adjustment of freightage costs would enable economic rates to be quoted for betterquality general goods.

He envisages the stimulation of direct export by increasingly keen competition between the providers of sea transport. But progress may well depend on intelligent application of the service in stages to various categories of goods in the correct order of preference.

Although he regards ferry rates as reasonable in the circumstances, he suggests that they should be reviewed regularly and that special commodity rates should eventually be offered. The Road Haulage Association, Traders Road Transport Association and shipping companies should, he believes, establish a joint formulating committee.

Rail Disadvantages

The railway container service is reasonably efficient, in Mr. Laws' view, but has two serious disadvantages. Although conventional packing is not required, machines must be securely held by battens or chocks, or by securing to the floor, which is particularly necessary on the Continent to withstand severe shunting impacts.

Secondly, the uncertain availability of Continental trucks is often a more serious handicap, the average delay being three or four days. This is also the average time needed to complete a delivery by direct export.

Insurance rates for direct export traffic are about 30-40 per cent. lower than for other traffic. Simplification of customs formalities does not provide a direct cost saving, but it shortens delay at the ports and is a valuable advantage.

Mr. Laws pays tribute to the "extreme helpfulness" of the Ministers of Transport of all the Continental cI I

countries visited and to the cooperation of Customs officials at Tilbury and Antwerp in expediting clearance.

Two Belgian operators haul the semi-trailers on the Continent and give a first-class service. New tractor units have been purchased by the concerns to match the semi-trailers, and this has enabled economic running to be combined with good perforpance.

Many British hauliers who are reviewing the possibility of operating to the Continent consider that backloading is ihe most doubtful factor. Those who are already cluing so are frequently unwilling to state the average proportion of return-load tonnage compared with the outward tonnage.

Back-loads Exceed Outward Traffic Howard Tenens' semi-trailers are returned to this country with a greater payload tonnage than is carried on the outward runs and the rates are reasonable. Mr. Laws is confident that there is enough traffic for everyone and estimates that the available back-load tonnage is about 450 per cent. of that which is now leaving this country on semi-trailers.

After deliveries to the smaller countries, including Belgium, Holland and Switzerland, a return load is collected from any centre within the national boundary. In the unlikely event of a load being unobtainable, the semitrailer is taken to one of the main centres, such as Paris, Brussels or Rotterdam.

Semi-trailers return to this country, on average, within seven 'days and in about 45 per cent. of the sailings, a haulier, who has delivered a semitrailer to Tilbury, can collect a loaded

unit arriving in the ferry. If several semi-trailers are returned empty, they are stacked three high on the ferry decks. The ferry rate for empty trailers is 4s. a sq. ft. regardless of the number carried.

The five semi-trailers of the Tenens fleet employed for direct export have been selected according to grades of bulk capacity to enable the most appropriate size to be used for individual toads. This is of outstanding importance, because of the value of a high weight-to-bulk ratio.

Modified Semi-trailers Makes of semi-trailer include York, Tasker, B.T.C. and Eagle, and all have been extensively modified to comply with the requirements of the service. The smallest has a platform measuring 17 ft. by 8 ft. and is capable of carrying 10 tons, whilst the platform of the largest vehicle is 26 ft. long and 8 ft. wide and its carrying capacity is 16 tons.

Couplings have been converted to the S.A.E. type and for Customs purposes the platforms havebeen fitted with 1-in. longitudinal rods at the sides, so that a single rope can be used for lashing down the load and securing the sheet. The end of the rope is sealed by the Customs official and remains unbroken until the vehicle reaches its destination. This method is strongly recommended to British hauliers.

Other modifications have comprised duplication of the braking equipment, air-operated brakes (which are obligatory) being used in addition to the vacuum type. Frames have been reinforced and flashing indicators, which are also essential, have been fitted. Tyres of larger section are employed as an additional safety measure.

Robust Chassis Essential

Stronger frames arc advised because travelling on roads with poor surfaces is frequently necessary on the Continent, as well as high-speed running over long sections of the trunk roads.

Mr. Laws is optimistic that membership of the European common market will be a great stimulus to trade and appeals for closer liaison between the British and Continental governments with the object of reducing documentation and so on pending full participation.

Regarding the general attitude of operators to direct export, Mr. Laws asks: "Why should the sea be a bogy? If there were a tunnel they would just drive through


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