Problems of the
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HAULIER and CARRIER IT is necessary to make clear, as a preliminary to this article, that I am—at present, at any rate—dealing only with the simpler type of parcels-transport Nisiness, in which the vehicle itself serves as collecting and distributing depot Such .,businesses are chiefly tun by owner-drivers, who, with one vehicle, make a daily or bidaily round in a given area.
It cannot be too emphatically stated that comparison between that type of business and the large organization is impossible. The service rendered by the latter is more efficient and more generally useful than that of the former. It deserves and obtains better rates.
Certain fundamental features of parcels carrying which
• must be present if success is to be achieved can usefully be indicated. The first is that a vehicle of ample capacity must be acquired. I am of opinion that a 30-cwt. van with maximum body space is the smallest practicable type. If there be not sufficient business to justify the use of a vehicle of this capacity, the service will not be a success. It will not earn enough to justify the energy expended. Parcels services operated by means of motorcycles and sidecars or by 5-cwt, vans can, except in rare instances, do no more than earn tobacco money. The second important matter is that of insurance. The operator must insure the goods against all risks. This may cost from £10 to £20 per annum, according to the value of the materials which are expected to be carried. The fact that an insurance has been effected should be used . as an advertisement and in justification. of fair charges. It is especially useful in competition with a rate-cutter who probably economizes by not insuring.
Incidentally, I am not suggesting that, in competing with another parcels carrier, a reader should, in a sense, defame his competitor by pointing out that he does not insure. That is the wrong way to sell service of any kind. The proper way is to oiler his own rates and stress the fact that they cover insurance of the goods.
• Regularity Essential to Success.
The next factor of importance is that of regularity. The service, if for collection and delivery, must be consistant and punctual. Failure to call at the time appointed will be fatal to success. As a means to that end, one day per week must be set apart for vehicle maintenance. If the service be a six-day one, Sunday will have to be utilized for that purpose, and holidays for decarbonizing, brake refacing and the bigger maintenance operations. Provision must also be made for the hire of a spare vehicle in case of accident or when the original machine is being overhauled.
I have already pointed out that there are two ways of tackling the problem of assessment of rates for parcels carrying. One is to assume a round and size of vehicle, to calculate the cost of making the round and from that to work out some average rates for various sizes of parcel. That is the usual way, and the one which I have followed on previous occasions. The other method is to take some schedule of rates already current and analyse it to see what prospect of profit is offered.
Table 1 is a schedule of charges for local parcels collection and delivery. It has been sent to me by a haulier engaged in this business in a township having a population of approximately 170,000 persons. The service is carried on within a three-mile radius. Parcels for farther afield are accepted, but are handed over to another carrier. The haulier issues to his customers a note a the general conditions of delivery, as follow : (1) All goods to be securely packed and fully ad
i dressed. (2) 'Dangerous goods and explosives not carried. (3) All goods fully insured in transit, but,
whilst all care is taken, no responsibility can be accepted for breakages due to faulty packing. (4) Where delivery cannot be effected 'owing to there being no one
available to receive the goods, and if they cannot be • left, or if they be not accepted, the consignor shall pay, in addition to the ordinary rate, either (a) half the de livery charge for returning the goods (minimum 4d.), or (b) the ordinary delivery charge for each extra call made, subject to all such calls being made at reasonable times.
(5) Goods with insufficient addresses are not accepted
• unless the consignor agrees to pay an additional charge of Id. per minute (minimum 6d.) for time ;spent in ascertaining the proper address. (6) In the case of an incorrect address being given, the consignor shall pay, in addition, for the time spent in ascertaining the correct address, or, if
this cannot be found, will pay the ordinary delivery charge for returning the goods. (7) In the case of a call to collect goods and the goods cannot be collected a charge of 4d. for each extra call is payable in addition to the ordinary charge, subject to all such calls being made at reasonable times.
Collection at Specified Times
(8) These rates are for collection and delivery on the ordinary round ; in the case of collection and delivery at specified times—where this can be arranged—an extra charge will be made. (9) In the case of carriage-forward goods, in the event of the consignee not paying the carriage, the consignor shall pay. (10) The right to refuse goods is reserved.
The foregoing conditions are the normal ones current in the business. They are set out here for the benefit of those who are unaware of them.
It must not be assumed from the fact that this 'parcels carrier confines his activities to a radius of three miles from his central point, that his mileage ' per day is no more than six or thereabouts. I gather that he visits 18 suburbs and that his route is something like a six pointed star, and is covered six times, so that in the course of a day his mileage is invariably in excess of 30 and may be more than 40. .
A 30-cwt. van is used. The net cost of operation is about 1s. 10d. per hour, plus 24d. per mile. The minimum revenue for a most modest profit should be ,at least 3s. 6d. per hour, plus 2nd. per mile. I would put 5s. per hour and 3d. per mile as being the revenue necessary to bring in a satisfactory profit, having in mind the fact that the work is arduous and that often there are agency discounts and other expenses to meet which do not occur in connection with an ordinary haulier's business.
On the ehove basis, a day's work should bring in a • revenue of £2 10s. Now, if
• every parcel carried be of the ;minimum size, that is to say, less than 14 lb., 150 such parcels will be necessary, to bring in that minimum revenue and if each consignment has to be collected and delivered, the work will involve a minimum of 300 stops. Can it be done?
Before that question can be answered, we must have a figure for the time necessary to collect or deliver a parcel. The railway.. companies reckon ; five minutes per call, plus one minute per cwt. of the parcel delivered. On that basis, five minutes, say, will be occupied per call, leaving out of the question the small fraction of a Minute necessary for the delivery of a parcel weighing less than 14 lb.
Most owner-drivers tell me that allowance is excessive, although they agree that the time per call is not always at the discretion of the parcels carrier, who sometimes has to await the pleasure of those on whom he calls. Two minutes is the average allowance. Three hundred stops of two minutes each represent a total of 10 hours. If the distance travelled during the day be 36 miles, that will necessitate, at the speeds possible in congested areas, another four hours, making 14-hour working day, which is impossible, except, perhaps, at Christmas time. There is not only the fact that the law would not allow it, even in the case of an owner-driver, but also that collection and delivery are normally practicable between only 9 a.m. and 6 p.m., a total of nine hours.
Clearly, therefore, if all the parcels collected be of the smallest size schedule, 4d. per parcel is not an ecoliimaic rate. • Next' week I shall show that if we consider the prospect of profit from carrying the largest type of
parcel, the outlook is more promising. S.T.R.