Problems of the
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HAULIER AND CARRIER
INTEREST in parcels carrying is rife just now, which is rather strange, in a sense, because there is some formidable competition in that field of haulage, competition from ibus operators who carry the parcels on their buses and can, therefore, do the work at practically negligible cost. The vehicles are already in service, they have routes to cover and they are presumably already earning a reasonable profit on the fares received from passengers, so that anything they receive from parcels carriage is
additional profit. .
The fact that there would seem to be limitations in the way of luggage space has no effect on the success of these bus-cum-parcel services, as experience shows: according to one operator, he has been offered, and has accepted, as a "parcel," a suite of furniture comprising a large Couch and two armchairs.
These services are well organized and are extremely convenient in rural areas; because people along the route can stop the bus and hand parcels to the conductor.
It may be that the success which is attending bus companies' parcels services is encouraging hauliers to look to the same sources. for eMployment and, no doubt, there is still ample scope, off bus routes, for this kind of work.
In two recent articles I have dealt with this particular branch of haulage. In the first, dealing 848
with a successful business, the operator confined his attentions to what might be termed a restricted area, because he did' not travel more than three miles from his base, transferring to other concerns parcels for delivery outside that radius.
In the second case, the service was only in prospect and was to he over a route of 112 miles. I showed how this route would have to be worked and I outlined a scale of charges. At the smite time, I believed that it was not practicable, because the route was too long, making it impossible, as I showed in the article, for a complete round trip to be covered in a working day. Tills time the route is SO miles long, which is more practicable. It starts in a comparatively small country town and ends in a city, where, as the inquirer himself puts it, an address to which a parcel may be directed can be anywhere inside a five-mile radius. Indeed, it is that circumstance which is causing him some anxiety, although his principal inquiry is as to the way he should calculate his charges.
He proposes to use a 30-cwt. vehicle. He wants to avoid, if possible, making use of delivery agents; that is to say, he wishes to make his deliveries at destinations, rather than to hand parcels to third parties for actual delivery.
There is sound sense in this particular intention, because that is the way he can improve upon the parcels service afforded by bus companies, which, as a rule, deliver only to agents.
I think the only way to overcome the difficulty of having to risk making deliveries within a wide area is to allow for that as a probability in calculating the mileage. I suggest that an allowance of 10 miles for "off-the-route " deliveries should be made in calculating the distance covered per round trip. The total will be 70 miles,, comprising 30 miles in each direction and 10 miles for deliveries. I understand it is proposed to cover the trip once daily, six times per week, so that the weekly mileage will be 420.
According to The Commercial Motor Tables of Operating Costs, the total cost of operating a 30-cwt. vehicle for 400 miles per week is £9 10s., plus an allowance for the increase in the cost of petrol since those Tables were published. The increase is equivalent to 0.23d. per mile and that is a further 7s. 9d. for the 400 miles, It will be reasonable to take £10 Per week, having in mind that the actual mileage is going to be 420, and not 400.
To that sum must be added establishment expenses, the cost of advertising and sundries. Newspaper advertising may be taken to average El_ per week, the distribution of handbills, say, 5s. per week, and sundry overheads a further 15s., making £2 per week in all. If I take £3 per week as the minimum net profit—if the operator does not like this he must make corrections accordingly—the minimum total revenue must be £15 per week, which is £.2 10s. per round trip, or practically 71d. per mile.
In beginning this calculation, it is necessary to assume that the vehicle is fully loaded in each direction ; in these circumstances, 71d. per mile is equal to 5d. per ton per mile, exclusive of agency commissions. I think that this haulier will find commissions unavoidable, for even if, as he rightly intends, he is able to avoid the use of agents for making deliveries, he will still find their assistance indispensable in collecting the goods.
However, making the calculation, in the first place, without considering agents, the charge must be on the basis of 5d. per ton per mile, which is id. per cwt.
per mile. •
Referring to the accompanying map, it will be noted that there are four principal places of call, apart from the starting point at A. I am given to understand, however, that there are other villages not named on the map, at intermediate points, where it is quite likely that collections and deliveries will have to be made. I have, for the sake of convenience, marked all these villages and they are shown as B, 3 miles from the start ; C, 5 ; D, 8; E, 11; F, 15; G, 20; H, 24; J, 28; and K, 30 miles. Beyond K it may be that a
further 5 miles will have to be covered before' any particular delivery is made, because K is such a large town.
On the foregoing basis, the charge per cwt. from A to B would be id., from A to H would be 8d., whilst from D to, say, two miles beyond the centre of K, would also be 8d., and other rates according to the distance from point to point. The rate per consignment for any journey can be calculated by multiplying the weight in cwt. by the mileage and by id. For example, the charge for a 4-cwt. consignment to be conveyed from F to H (a distance of 9 miles) should be 9d.
For a 28-lb. parcel to be carried, say, from G to two miles beyond K (12 miles in all), the charge would, on this basis, be 11d., which is clearly absurd, as most parcels carriers would expect at least Bd. or 7d. for a consignment of that size over the distance—
more, perhaps, if the parcel was inconvenient or tricky to handle. This difference between theoretical and actual rates is accounted for by the fact that there are other considerations to be taken into account before the actual charges to be made can definitely be decided.
The most important factor, in the calculation of rates for a parcels service, is the proportion of the average actual load to the full capacity of the vehicle, and experience shows that, in services of this description, the proportion rarely exceeds an average of one-third.
This unfortunate condition is brought about partly by the fact that it so; frequently happens that a full load cannot be collected in time, and because a carrier's customers are apt tO take advantage of the service by giving him articles which are not so readily accepted by others. Bulky consignments, light in weight, but occupying considerable room in the van, and fragile articles, are deposited apart from the rest of the load, thus taking up more space than is justified by their weight. This increases the rate, accordingly, from -1d. per cwt. per mile to id., and that must serve as the preliminary basis of calculation.
S.T.R. B49