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Road haulage costs continue to rise

22nd January 1971
Page 17
Page 17, 22nd January 1971 — Road haulage costs continue to rise
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Which of the following most accurately describes the problem?

• Road haulage costs, says the RHA rose during 1970 by an average of 15 per cent. The figure for 1969 was approximately the same and was partially recovered by the rates increases in 1970. Practically all the 1970 increases in costs took place in the last six months of the year.

The RHA is advising all members to examine their own costs and to revise their charges at the earliest possible date.

The figure of 15 per cent is taken from a report by the Centre for Interfirm Comparison prepared for a meeting of the commercial committee of the RHA held on Tuesday. The CIFC is carrying out a five-year inquiry into road haulage costs and productivity with the assistance of 150 RHA members selected so as to provide a balanced picture of the industry.

In addition to the general tendency for prices to go up, changes particularly affecting hauliers during 1970 included wages (representing about half of the total increase), vehicles, repairs and maintenance, fuel and lubricants and tyres.

The changes did not affect all operators equally. In many cases the cost increase has been substantially more than 15 per cent. The extent to which the rates go up may therefore vary according to the circumstances of operators or groups of operators. In their negotiations hauliers are advised by the Association to take into account not only the actual rise in costs, but also the necessity to earn an adequate return on capital. Carriers of bulk liquids, agricultural hauliers and livestock carriers are already negotiating for increases in their rates.

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