Further Thoughts on a Nation ates Schedule
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AS I expected, I have received a number of criticisms of the figures
tor mileage quoted in my previous article. Mileages of 480 daily and 2,880 per week for vehicles, the maximum permissible speed of which is 30 m.p.h., are admittedly, astronomical figures. The distances are unlikely ever to be covered in the time •ty commercial vehicles operating on ordinary English roads.
However, I did make it perfectly plain that the examples and figures quoted were entirely hypothetical, and were not in any circumstances to be considered as indicating what might actually be achieved. I particularly drew attention to the fact that the rates given must not be used as a basis for quotation.
The figures seem to show that, theoretically, there is an advantage in using a 16-tonner as compared with an 8-tonner, provided that the vehicle can be fully loaded. This advantage, measured in terms of the rate to be charged, showed that, whereas when the 16-tonner was used over this 160-mile route a rate of 12s. 8d. would suffice, with an 8-tonner the rate would have to be 16s. for the work to be profitable.
The importance of securing full loads in both directions can readily be appreciated when I point out that, if the conditions be such that the average loading of the 16-tonner, taking into consideration journeys in both directions, was 12 instead of 16 tons, then the rate would have to be in excess of 16s. per ton—that is to say, more than would be necessary in respect of an 8-tonner.
When we turn to compare these conclusions—drawn from theoretical calculations—with what is known to be achievable in practice, it is found that the bigger vehicle does not show to such advantage as might be expected.
In a short series of articles, terminating in " The Commercial Motor " dated June 25 of this year, I gave some data taken from the operating records of a large haulage contractor. A schedule summarizing this information was given on page 331 of that issue, Vehicles of 6 tons, 7-8 tons, 12 tons and 15 tons appeared in the schedule. The average Ierigih of lead was 210 to 220 miles, and the conclusions were briefly as follow:— . Conclusions Reached for Different Sizes of Vehicle So far as the 6-ton vehicles are concerned, these usually were able to make three round journeys per week, carrying such loads that the weekly tonnage was 94 per cent, of that which would have been carried if the vehicles had been fully loaded to capacity in each direction. It was demonstrated that a rate per ton which would give a reasonable profit on operations in these circumstances was 21 12s. 3d.
The 7-8-tonners did not show up in such a favourable light, and the figures indicated that they could be expected, under the conditions of operation, to average only two round journeys per week over the same distance, namely, 210-220 miles each way. Moreover, the loading efficiency was only 82 per cent., by which I mean that, taking all the vehicles and their weekly tonnage,' the gross loading was only 82 per cent, of what it would have been if all the vehicles carried capacity loads in both directions. In consequence, it appeared that the rate per ton, using 7-8tanners, would have to be 22 if a reasonable profit was to be earned. When it came to the 15-tonners a somewhat better performance was recorded, although only two journeys per Week could be completed. The tonnage rate worked out at 21 10s. In these vehicles the percentage efficiency of loading was about 95. The figures for the performance of the 7-8-tonners are most disappointing. One would have thought that a vehicle of this site would have been more economical than a 6-tonner, and that the rate to be charged could have been less than that permissible for the smaller vehicle.
, Re-examination of the schedule showed that the loads carried by the 6-tonners were, in nearly every case, unit loads involving one pick-up and .one drop. As regards the 7-8-ton vehicles, the loads in every case but one involved more than one pick-up and More than one drop. In that example the round journey was completed quite easily in two days, showing that it was possible with this type of vehicle to equal the performance of the 6-tonner and complete three round journeys per week, without excessive overtime or anything of that kind.
What the 7-8-tonners Cost For Tackling a Week's Work Revising the figures relating to the 7-8-tanners and making the assumption that they were capable of completing three journeys per week, then the cost of a week's work would be as follows:—For 1,300 miles at 61d. per mile, 233 17s.; for standing charges, Ell 3s., making a total cost of 245, to which must be added about 27 for establishment charges, bringing the total to 252. The revenue, on the basis of about 15 per cent, profit on cost, would have to be 260 per week. Now, if the loading efficiency of these 7-8-tonners, working on this' basis, be 90 per cent., then the total tonnage carried per week would be approximately 40, and the rate needed to bring in the revenue of 260 per week would be 21 10s. per ton.
That is the same as the rate quoted in respect of the 15-tanners, and, on the face of it, it would seem that there is no advantage in using a 15-tonner so long as a 7-8-tonner is big enough to carry the tonnage that is offered. The 15-tanner is no more economical•and appears to be of use mainly as a big load carrier and not as a means for effecting cuts in rates.
Of course, it has to be remembered that, in the figures relating to these 15-tonners, provision had to be made ior the wages of a second man, that being the custom so far as this company was concerned. Moreover, the standing charges for the largest type of vehicle are high, and that, coupled with the fact that it takes so much longer to load and unload, militates against it becoming as economical a vehicle as otherwise might well have been anticipated.
If these figures be accepted, and with them the concession that rates for a 15-tonner are not necessarily less than those for a 7-8-tonner, then the process of building up a schedule of stabilized rates is much simplified. It means that, so long as the vehicle is carrying a unit load—that is, if the load involves no more than one pick-up and one dsop—then the actual weight carried can be anything from 6 tons to 15 tons, the rate being the same, When anything below 6 tons is offered as a part load for a 6-tonner, below 71 tons for a 7-8-tonner and below 15 tons for a 15-tonner, then the rate must be increased by not less than 30-40 per cent.
In passing, this raises a rather curious point. If these conclusions be aeceptable and a load on the 15-tonner cannot be carried-tt a rate appreciably less than for a 7-8tonner, then, since the probabilities of unit loads are much greater in respect of the smaller vehicle, it would appear that the 15-tonner is likely largely to give way to the maximum-load four-wheeled vehicle.
An Instance When Theory is Conflrmed by Practice
This theoretical result is confirmed in practice in the opinion of several large -operators. Experienced hauliers, principally engaged on trunk services, have expressed the view to me that the after-the-war vehicle which they would prefer to buy would be one weighing less than 3 tons unladen—and, therefore, permitted to travel at 30 mph.— and capable of carrying a full pay-load of 8 tons. They thought, too, and they are probably right, that with advances in the knowledge and use of light metals there should be no difficulty whatever in producing a serviceable vehicle to comply with this Specification.
The-larger machines will still be needed, but mainly for use when carrying goods which are either awkward to handle or bulky, such as machinery, textiles, woollens and similar commodities—traffics which, in any event, can bear the extra charge involved by having to use outsize machines for their conveyance.
Comparing the rates which are shown by practical experience to be desirable with those at which I arrived in the process of the theoretical calculations in the previous article, it can be seen that practice asks for a rate approximately double that of theory. •• From 30s. to 32s. per top is requisite, compared with 16s. per ton on a 7-8-tonner and 12s. V 8d. per ton on the 16-tanner. Allowing for the difference in road mileage and accepting that approximation as inevitable, it is reasonably correct to state that the practical rate is dOuble the theoretical.
Accepting these rates of El 10s. to £1 12s. per ton for loads carried over a 200-miles lead, it is now necessary, in considering the basis of a Nationwide schedule of rates, to consider the effect of the several factors mentioned in my article which appeared in "CM." dated July 9. The first of these—size of vehicle—has already been discussed (in last week's issue), except that, in wording the condition, I made reference to the bulk of-the goods carried.
That is something which must be considered independently, and, leaving it on one side, the others are, first of all, the type of vehicle, having particular regard to bodywork and equipment necessary for handling the goods.
As we arc concerned with long-distance traffic and not with local haulage, there is no need to consider the tipping wagon. All that need be considered are vans as compatid with open or sided lorries. Obviously, there is no point in considering the special low-loading types, because they are always used for special traffics, which are quoted for independently of any schedule of rates.
Now, the difference involved, in so far as ratei are concerned, in bodywork pure and ' simple is brought about by the fact that the first cost of a van body is higher, that it is more expensive in upkeep and, probably, depreciates rather quicker than the more simple types Allow an addition of 4200 to the initial cost in respect of the more expensive bodywork, as well as for a difference of id. per mile for cost of maintenance. The £200 difference in initial cost will increase the depreciation account by id. per mile, and it will add to the interest charges by 3s. per week approximately.
How the Rate is Affected by More Expensive Bodywork
The total increase in running costs is .325d. per mile, so that in the case of a vehicle covering, as in these practical examples, 1,300 miles in a week, the total increased expenditure, including the additional interest, will be 38s. per week, approximately Is. per ton higher, under rather than over. That is the variation in rate which, would be involved by more expensive bodywork, and it is, probably, the maximum allowance that Would be necessary to effect a safe cover.
Rather more expense is involved in the case of a vehicle with special equipment for loading and unloading, such as the type which was used some time before the war for the conveyance of meat over long distances: Readers will no doubt recall the type I have in mind. It was a refrigerator pattern and was equipped with runners and hqoks attached to the roof of the body, so that sides of beef could be hung therefrom.
In my view, traffic which calls for special equipment of that kind may reasonably be considered to be outside the scheme . of scheduled rates. It is a special line. The vehicles employed are of little use for anything else and those traders who wish to have their traffic carried by road in this way will certainly be agreeable to pay something over and above the standard rate for the special facilities afforded by such vans.
If, however, it be thought necessary to provide in the schedule for work of this kind, it seems likely that, at the outside, a further Is. per ton on the Is. extra charge specified for the use of expensive vans would be enough,