PROBLEMS OF THE HAULIER AND CARRIER.
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Working Out the Details of a Long-distance Haulage Scheme, Showing how Haulage Charges are Decided and the Haulier's Profit is Estimated.
T. ET us suppose that the man whom we have been 1_ .1 considering in the previous two or 'three articles—. the man who is thinking of starting business as a haulier—decides after all that passenger work is hardly what he thought it might be. Possibly, the high first cost of the outfit we recommended may have put him off, or the idea of risking so much on what is after all an untried scheme may not appeal to him. Assume that he thinks he will take on a job which will keep him away from home a night or two a week ; let us suppose, that is to say, that he makes up his mind to go in for long-distance work, driving the vehicle himself. I have already stated that the man I have in mind lives in a fairly big industrial town or city, with plenty of opportunities to obtain heavy loads of finished goods for transport to other centres, with reasonable likelihood of getting loads elsewhere in
return. In a ease like that, the main point calling for settlement Is what size and type of lorry would be most suitable for the work to be done.
What Loads are Likely to Offer.
At first glance it would seem as though the bigger the vehicle the better, for in that way the biggest loads, which presumably bring in the biggest return, can be carried. That is true enough, provided the loads are available every time the vehicle sets out on a Journey. That, however, may not be the case and, consequently. before the vehicle can be selected, inquiries must be made as to the possibilities regarding loads and as to the size of each.
Now I am going to assume that as the result of this preliminary investigation it is found that loads of 10 tons will be offered occasionally, but that on some days only five or six tons will be available. On the face of it, it looks as though a wagon and trailer would be the best outfit to use for the work, and perhaps the first thing to do then is to consider how far it is possible to make use of such equipment and whether it can be made practicable and profitable.
Cost of Operating Various Outfits.
First of all let us consider the operation of a 6-ton petrol lorry without a trailer. The petrolconsumption of such a machine regularly employed on long n28 distance runs should be rather better than the average figures which are given in our tables. It will be fair to assume an average of a gallon per 6 miles, so that the cost of petrol will be 1.7dh per mile. A similar economy is effected in oil consumption and the cost of lubricants should not be more than a farthing a mile. Tyres; too, will last longer, since they are employed for the most part on good roads; so that, providing the hauler does not attempt excessive speeds and that he does not much overload • his wagon, the cost per mile for tyres should not be more than 1.30d. Maintenance will be 1.90d. per mile and depreciation 1.3511„ the total running costs being, therefore, Bid. a mile.
Standing charges Will be as follow :—Licences, 260d.. per week ; wages, 864d. per week ; rent and rates, 2404. weekly (this is somewhat higher than the average figure because it will be necessary to garage the vehicle away from home two or three times a week). Similarly, there will be an additional item coming under the head of standing charges brought about by the personal expenditure of the driver-owner in having to maintain himself away from home two or three nights a week. This will be another 240d.; then there is insurance, 92d. and interest on the first cost of the vehicle, calculated in the usual way, 225d.
Now these long-distance haulage trips over distances of about a hundred miles each way, out and home— sometimes a little more, sometimes less—as, for example, from Birmingham to London, are usually worked in such a way that the vehicle does two complete round trips every three days. Taking Birmingham to London as an example, a start is made, say, from Birmingham early. on Monday morning with a load. The vehicle makes London about the middle of the day, unloads and picks up another load in London, starting back in the late afternoon. The driver gets on his way so far as he reasonably can and puts up for the night. He continues his journey on Tuesday morning, getting back to Birmingham before noon so that he can unload, reload and perhaps get to London again or near London at night. On the Wednesday morning he unloads, loads and is back at Birmingham in time to discharge his goods that nightonaking, as I have said. two complete round trips in the three days, or four trips a week. Getting at the Cost Per 'Ton.
The total Mileage covered in this way. per week is SOO; the total cost is 800 times 641., that is to say, 5,200d. plus the standing charge, 1,920d., making 7,120th a week in all, which is £29 13s. 4d.
This is, however, not the total expenditure; there are other costs which have to be taken into consideration. It will be necessary for a man engaged in a business of this kind to make some arrangement whereby messages for him can be collected and transmitted at both ends of his regular route. At home he will probably make his house serve as his office. He should have a telephone there, and it should be so arranged that there is always someone in to take messages which may come over the 'phone. No matter how this be arranged it will cost money, and it will be safest to assume a round figure of a pound a week to cover it. At The .other end he may arrange to call regularly at some shop or other, and for the services of the shopkeeper, who is to all intents and purposes his agent, he will have to pay about 10s. a week. The cost of his telephone will work out at about 4s. a week ; postage, telegrams, notepaper and similar sundries will amount to another 4.s., whilst there will be other little extras which will involve him on the average in an expenditure of about a further 2s. Ail these items of expense are comprised in what are termed, in our "Tables of Operating Costs, "establishment charges"; they amount in this case to £2 a week, and this must be added to the £29 13s. 4d. already quoted as the total operating costs of the vehicle, making £31 13s. 4d., which we may just as well call £32, letting the other Os. 8d. serve to cover contingencies for which we have no proper allowance.
Now these loads are nearly always paid for at so much a ton, the figure quoted being usually based on the railway rates for the class of good's concerned. The haulier can ascertain these rates for himself by direct inquiry of the railway officials. He should get those rates which include collection and delivery, for it is against those which he will have to compete. The rates, he will find, will vary according to the material which he proposes to carry, and he may have to make several inquiries of this kind before he gets very far with his new business.
How Many Tons a Week?
Now if this 6-ton lorry travels each way fully loaded. on every one of the trips it makes, the total tonnage it will carry during a week will be eight times six, or 48 tons. The cost to the haulier himself, of carrying those 48 tons, is £32, which is equivalent to 18s. 4d. a ton, so that he must get more than that if the business is going to pay. It is, as a matter of fact, a simple matter to calculate at once the weekly profit which he will make, according to the price he is paid, using this 13s. 4d. per ton as a basis for the calculation, for, if he gets a penny a ton more than that, he makes 48 pence a week profit. On the other hand, if he gets a penny a ton less, then he actually loses 4s. a week. The way to ascertain the profit, therefore, is to reckon 4s. a week for every penny a ton over 13s. 4d. and, in the event of his deciding to Work at a losS, then the loss is similarly calculated, being 4s. a week for every
penny a ton less than 13s. 4d. S.T.R.