'I didn't fancy spending the next few years watching the
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fleet deteriorate' After losing his last maior contract, Notts tipperman Bill Ellis saw the writing on the wall and sold up, despite being in a strong financial position. But he's not bitter...
(0 n Thursday 17 April we were given four days' notice that our last major contract, of 1,000
tonnes per day, was terminating. On Thursday 24 April I took the decision to sell our extremely modern fleet of articulated tippers and pull out of the hireand-reward sector. The decision was not forced upon me—our fleet was mainly owned outright with very little HP. We had also had our best two trading years ever and the company couldn't have been in a healthier financial position. The reason I took the decision so quickly was I didn't fancy spending the next few years watching the fleet deteriorate, chasing about, losing money I cannot believe the rates hauliers are quoting for work. For instance, we used to do £40,000 work a week for RJB. We now do next to nothing because we are told our rates are often 25% too high. We are told by them that they are are now seeing haulage rates at 1980's levels.
However, I would like to stress that I am not bitter. I have only been in tippers 11 years and have had a good run. But I do daily vehicle profitability working sheets and overnight I saw the figures change from good healthy statistics to abysmal ones. I
also discovered many years ago that there is no money to be made in working for other hauliers: they obviously give away their worst work, take months to pay and couldn't care less whether the job is profitable or not as long as they get their cut. The contract we have lost is now going by rail and I know it makes sense. I have always been amazed to be told that our haulage rate, based on 40 truck journeys a day, could be more competitive than the rail rate for a single 1,000-tonne train. I also believe any bulk movement that can go by rail or water should do, as long as the customer is given a good service at the right price and the railways and waterways can cope.
The state of the roads and the volume of traffic frightens me and the next government must produce a coherent transport policy. It must decide what the role of road transport is going to be and accommodate it accordingly. The haulage industry must right its corner and point out the colossal burden of taxation that road transport daily pays to the Exchequer in return for an abysmal infrastructure. And now, to add insult to injury, it is threatened with tolling. If tolling is brought in, then vehicle excise duty should be reduced accordingly; otherwise we will be handing a trump card to our foreign competitors.As a nation, we must decide what the role of road transport is to be.We must realise that 100% of the products on a supermarket shelf are transported by road at some stage and to tax hauliers out of existence will eventually lead to massive inflation.
Hauliers for their part must be more professional. Too many are in business because they have diesel in their blood and can't do anything else, but I would advise them to look very carefully at their figures, especially after recent Budgets. On the other hand, there are also some very clever businessmen out there, some of whom I had the pleasure to meet at the Commercial Motor Fleet Conference I attended and also at various trade shows and visits.
Incidentally, I am always amazed how many hauliers tell me they go for 38 tonnes on six axles "because it's cheaper". Thank you Commercial Motor for giving me the opportunity to vent my feelings and I will continue to keep in contact with the road haulage industry via your excellent magazine.
• if you want to sound off about a road transport issue write to features editor Patric Cunnane.