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Rates Again

22nd January 1965
Page 25
Page 25, 22nd January 1965 — Rates Again
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Which of the following most accurately describes the problem?

riN the face of it, there would be very good reason for counselling kJ extreme caution on the haulage• industry, should it be tempted once again to think about trying to increase the general goods rates. Certainly, one thing must be borne in mirid perhaps more carefully than ever before; that is the considerable political capital that would be made of such a move.

However, the problem is not as simple as that. Although the Road Haulage Association-recommended rates levels have been increased by no less than 25 per cent in the past:four years, there are very many instances of rates being generally accepted which are well below those charged 10 years ago—and in rare instances even below pre-war levels. What has happened is that hauliers and their vehicles have so increased in all-round efficiency that the increased revenue per vehicle has had to be offset against fiercer competition.

On three pages of this week's issue—pages 25, 63 and 69—the possibility of rates having to be increased again is discussed. The plain fact cannot be ignored that costs are still spiralling upwards— with more increases likely. One thing is certain, and that is that the national rates and carriers liability committee of the R.H.A. is feeling concerned at a steadily worsening situation.

This journal has several times in the past few years commented that this uncompromising roundabout Of costs and rates will continue inevitably so long as there is a free market.

The existing licensing system will always lend help to the determined rate-cutter and encourage customers to " shop " for unreasonably low rates (and get them). Is it not at least a thought that the haulage industry might reconsider its traditional hatred of minimum fixed rates for specified traffics as a licence condition?


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