AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

HAULAGE RATES HARDENING IN THE NORTH EAST

22nd November 1963
Page 22
Page 22, 22nd November 1963 — HAULAGE RATES HARDENING IN THE NORTH EAST
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

LONG-TERM political influences are resulting in a hardening of conditions in the road transport market in the North East, a region where quite recently there was little buoyancy in rates. in many cases hauliers appear to have had considerable difficulty at the time in obtaining the most recent 5 per cent increase recommended by the Road Haulage Association, but this rise is now being accepted as a result of a short-fall in transport availability.

Similar situations seem likely to develop in certain other parts of the country. Basically, the reason is that there are fewer vehicles chasing the available traffic. At the same time trade generally is proving brisk in the Tyne-Tees region and is likely to liven still more as a result of the Government's plans outlined in the White Paper published last week. The "deliberate investment discrimination" mentioned therein is expected to materialize initially in the form of an increase of public service investment to about £80m. in 1963-64, as compared with £55m. in 1962-63. Much of this expenditure would be on services with a high transport element. Public expenditure at a level higher than the average for the rest of -the country is likely to continue for some years to come.

Normal prospects in the area at the moment would appear to justify various hauliers seeking licences for larger fleets. But with a general election on the horizon and a certain amount of apprehension in the air regarding the transport situation in the event of a Socialist success, there are indications that some substantial operators have not thought the time opportune to pursue a policy of expansion. This slackening of high-pressure competition has brought a tougher line on charges, and local experts of lone experience report that, generally, rates are running at a fair level throughout the region.

All this must not in any way be taken to suggest that the haulage industry in the North East has suddenly "struck it rich ", but only that the situation has brightened somewhat. Reference has been made above to difficulties experienced in securing the 5 per cent increase and I understand that one important public body, having a considerable road transport commitment locally, has only just agreed to accept the advance in full. A.T.

Tags

Organisations: Road Haulage Association

comments powered by Disqus