US hauliers seek rise
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FACED with the new wage rates which come into effect on April 1, haulier& in the USA are pressing for an increase in freight rates, I hear. They are asking for a 10 per cent rate increase for shipments under 1,000lb and a 3 per cent increase for shipments weighing over 1,000Ib.
A recent survey conducted by the Central States Motor Freight Bureau revealed hauliers' operating ratios have been averaging close to 97.5 per cent of revenue before taxes, this year. Commented Mr. Harvey Welty, vice-chairman of the bureau: "Any motor carrier with an operating ratio higher than 95 per cent is heading for bankruptcy, even though he may not be immediately aware of the fact."
It had been calculated that road haulage operating ratios should .be no higher than 92 per cent. Had this been the case in 1966, operators would have recorded a 16.6 per cent ratio of revenue to net worth. In comparison, the Civil Aeronautics Board recently approved a revenue/net-worth ratio of 17 per cent for continued airline profitability!