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UNDERSTANDING RAILWAY CHARGES.

3rd August 1926, Page 24
3rd August 1926
Page 24
Page 24, 3rd August 1926 — UNDERSTANDING RAILWAY CHARGES.
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Which of the following most accurately describes the problem?

Many Matters Connected with Railway Charges which should be Within the Knowledge of Road Hauliers.

ALMOST every road haulier at some portion of his career finds himself in more or less strenuous competition with the railways. Apart from the transport man who has had railway experience, relatively few have made it their business closely to study railway rates and conditions.

It is, of course, always an advantage to know something of your competitor. The railways have for years taken an unobtrusive yet keen interest in road carriers, particularly in the new-comers to the industry. Their widespread organization, which, too, includes the ownership of large fleets of motor vehicles, has enabled them to accumulate considerable data on haulage matters generally, and on the balance they have, perhaps, a greater knowledge of this subject than the average haulier has of railway charges or of railway goods operation generally.

The Haulier Must Be as Well Informed as the Trader.

The trader, in considering how he shall forward his goods, must in many cases obtain quotations from both road hauliers and railway companies; hence an intelligent knowledge of railway rates, reinforcing his road experience, wouldput the haulier on equal terms with the trader when costs are being discussed. It may happen that, where a favourable rate cannot be quoted, a haulier may gain the traffic by pointing out that it is only accepted by the railway at owner's risk. The possibilities then following upon his study of railway matters are really too great to be overlooked, especially in the case of the beginner.

There is little excuse for not knowing something of the subject, because Parliament has considered railway rates to be everybody's business and has legislated accordingly by enacting, amongst other things, that railway rate books shall be kept for public inspection at goods stations free of cost. Legal requirements, in fact, go farther, as, under certain conditions, railways are obliged to disintegrate rates by showing the ielative amounts included for conveyance and station and service terminals.

Terminal Charges and Their Effects Upon Goods Rates.

Before leaving the question, it ought to be pointed out that terminals are constant, whatever the distance covered. Consequently, in the case of a long-distance rate, they form only a small proportion of the whole. This, with the fact that goods rates are quoted on a tapering scale, largely explains the ability of the railway to compete more successfully for long rather than for short-distance traffic. The tapering principle will be made clear by examining the following extract from the Railway Rates and Charges Order Confirmation Act, 1891-2, giving the maximum conveyance charges for Class 1 traffic of the old Midland Railway, the existing increases not having been added :— "Exceptional Rates" to Meet Competition.

Ordinary rates, being divided into eight different classes as determined by the classification—to be mentioned later—do not present much difficulty, but "exceptional rates " are at times decidedly complicated. Representing reductions from the corresponding class rates of anything up to 50 per cent., or even more, it n40 is not surprising that these exceptional charges should be the most important portion in the rates structure. Moreover, their number is always being added to to meet trade needs and outside competition.

At present "exceptional rates" can be lowered without restriction, but, as from the approaching "appointed day," the freedom of the railways will be much reduced, owing to an independent authority in the shape of the Railway Rates Tribunal assuming the powers contemplated in the Railways Act, 1921. The importance of this matter would justify all hauliers, who have not yet done so, purchasing a copy of the Railways Act (90.) and studying Part 3, particularly Sections 36-40, which set out the new requirements regarding "exceptional rates."

The " General Railway Classification."

Another and indispensable publication is the "General Railway Classification of Goods" issued by the Railway Clearing House, a perusal of which will show, the beginner what traffic he can best obtain in competition with the railways. For instance, to the haulier the handling of cotton yarn is not greatly different from carrying silk, yet in the railway classification the latter is two classes higher and correspondingly dearer.

Care must, however, be used in following the classification by selecting the entry exactly to fit the traffic, as, under some conditions, the same commodity is classifled lower and, when sent at owner's risk, articles marked X, Y or Z benefit by a reduction of 10, 15 or 20 per cent. respectively. Much could be written concerning the respective merits of owner's risk and company's risk rates, but the only comment to be offered here Is that there are articles such as bicycles, furniture and machines of different kinds, which, when not properly protected by packing, are only carried at owner's risk, whilst other things are carried solely by special arrangement. Points like these are often overlooked by the trader when comparing road and rail charges. It is advantageous to be conversant with other contents of the classification, such as carriage conditions, dangerous goods regulations and the returned empties scales.

Where the distance is known, rates for agricultural machinery, tramway cars, motor chassis, etc., can be ascertained from the mileage scales to be found in the same book. This scale is quite easy to follow ; for example, a motor lorry (not steam) travelling 252 miles would cost 69s. 20. pmton.

As will already have been gathered, the classification is as useful as it is bulky, which, considering its 625 pages, is saying a good deal. Indeed, scarcely anyone can peruse it without gaining valuable information.

Railway Rearrangements and Road Transport.

What has been written is by no means all that need be known. Nothing, for instance, has been said of "undue preference," amost important factor, nor has mention been made of the statutory .requirements to provide facilities for the receiving, forwarding and delivering of goods by rail.. What mush however, be' touched Upon is the rates revision now entering upon its final stages in preparation for the " appointed day." On this :subject the president of a large chamber a commerce recently .remarked that the "appointed day," by virtue Of the rearrangements and disorder it would cause, would be the best time the road-carrying industry had ever known. Whether one agrees with this opinion or not, there can be no two views on the necessity for being 'alive to the coming changes and the influence they will exert upon the fortunes of road transport.

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Organisations: Railway Rates Tribunal

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