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PROBLEMS OF THE HAULIER AND CARRIER.

23rd June 1925, Page 26
23rd June 1925
Page 26
Page 27
Page 26, 23rd June 1925 — PROBLEMS OF THE HAULIER AND CARRIER.
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Spare Vehicles----Bases for Quoting Delivery Charges—The Question as to Hiring instead of Keeping a Spare Vehicle.

FLEET operators frequently find that the services of a spare vehicle are valuable to them, particularly for maintaining a pre-determined schedule on contract work and in similar circumstances. The question often arises as to the advisability of keeping an extra vehicle which will not be fully employed for more than a portion of its time. In fact, cases are constantly arising, as, for example, the one referred to in a letter from Messrs. C. Udall and Co., of West Bromwich, published in this issue, where only one day's work for a 31-ton lorry has been secured all this year. It is thus impossible to lay down a hard and fast rule as to the governing conditions. Each individual user must decide according to the circumstances with which he has to deal, whether it will be a financial economy to run an extra vehicle, or whether hiring is the preferable course.

A somewhat indefinite inquiry is before me at the moment, but I will endeavour to answer it by givtag a few figures which may be adapted by users to provide the answer to the question if it arises in connection with their own fleets. The actual query is : "How best to deal with the question of spare vehicles in regard to the operating costs of the fleet." No details are given by the inquirer as to his own conditions ; therefore I must make certain assumptions and work upon them ; he will have to amend the figures in accordance with the circumstances of the case.

Presuming the fleet is composed of twelve vehicles all running on solid tyres, four being 1tonners, four 2-tonners and four 3-tonners, when fully employed they will be working about 49 weeks per annum in each case, the remaining three weeks being allowed for shed days, overhauls and so forth. Taking a weekly mileage per vehicle of 200, let us calculate the total operating costs for 49 weeks, adding the standing charges for 3 weeks, in order to arrive at the operating costs of the fleet for one year.

Four 1-tonners working 49 weeks, and standing 3 weeks, will cost about £1,453 12s. 6d. Four 2-tonners in the same circum c42 stances will cost £1,749 13s., and four 3-tonners £2,025 6s. 6d. ; the total coat of the fleet for the year will, therefore, be £5,228 1s., giving an average cost per mile for the fleet of 10.6d.

Turning now to the spare vehicle, I am assuming that it is a 2-tonner. The next point is how many weeks will it be employed? Each component of the fleet is out of action for three weeks ; therefore the spare will be working for 36 weeks, and standing idle for 16 weeks per annum. At this rate, the working weeks will cost £318 12s., presuming a week's operating costs to be £8 17s. when 200 miles are covered. The standing charges for 16 weeks will amount to £80 5s. 4d., making an annual total of £398 17s. 4d. The total annual mileage at the rate of 200 per week will be 7,200, which gives a cost per mile of is. 1.1d.

As will be seen, this figure is higher than the average of the fleet, but it should be borne in mind that it must be compared with the alternative, which is hiring another vehicle from an outside source. In all probability, the hire cost per Mile will be is. 40., which proves that, in the circumstances I have assumed, it is more profitable to maintain a spare vehicle than to hire.

It must not be taken from the foregoing figures that it is cheaper to keep a spare vehicle in all cases, the deciding factor is the quantity of work per annum which the spare will be called upon to do. For 16 weeks the vehicle is reckoned as being absolutely stationary and no less a sum than £80 5s. 4d. has been spent for the privilege of keeping the vehicle in the garage! The greater the idle period the heavier the burden of standing charges, therefore, the cost per mile worked for the year. For the sake of argument, let us take the case of a spare working 26 weeks. The half-yearly costs for running and standing will be £230 2s., the standing charges for the idle period will amount to £130 Ss. Sd., totalling £360 10s. 8d. The mileage covered will be 5,200, which equals is. 4.6d. per mile, a cost greater than that of hiring. The disparity will be larger as the standing period increases.

Another query raised by the correspondent in question is the relation between cost per ton and cost per ton-mile when calculating delivery charges. Assuming that he has a 3-ton vehicle taking a full load five miles out and coming back empty, it will cover 10 miles. At 1s. 80. per mile, he should re ceive 17s. Id. for the job ; dividing this sum by the number of tons carried gives a figure of 5s. 831.1. per ton as the haulier's charge for the.job. If he decides to charge on the ton-mile basis he must obtain the same sum, viz., 17s. id. the tonmiles, which are 3 tons multiplied by 5 miles, giving is. 1 2-3d. per ton-mile. When working on the basis per ton, he must include outward and inward distances and take into account all factors before quoting the figure. This is a plain statement of so much per ton, and it is assumed that the person to whom the quotation is given is fully cognizant of all the circumstances of the job ; 5s. 6d. per ton, say, may pay in one case, but in another it may mean a very serious loss. Were the distance double, for instance, the effect can easily be seen if the same figure per ton is adhered to. A quotation per ton should always apply to a specific job only. The ton-mile basis is very apt to be deceptive. On the 10-mile journey as we have seen, when fully loaded, he can charge for 15 ton-miles, but if only 2 tons are carried he can only charge for 10 tonmiles, whereas the operating costs of the vehicle for that distance are only fractionally lower than when the vehicle is working up to its full load capacity. S.T.R.

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