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RATES LEVE1
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Page 67
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IRD TO HOLD• BY ASHLEY TAYLOR, A.m.i.A.T.E., Assoc. inst. T.
IN a period when costs are spiralling unobtrusively but definitely, how are the smaller operators faring, the men whose personal contact with their customers and close knowledge of local problems have done so much to enhance the reputation of road transport as a whole? Most of those with whom I discussed the matter were anxiously awaiting the results of the Budget when I was asking for views a few days ago. In many quarters one could sense a degree of apprehension and, like certain politicians, some small hauliers would rather the Press projected their views in a general way without quoting their names.
A number of those with whom I made contact had the courage of their convictions, however, and, I think, provided a fair cross-section of opinion amongst the smaller operators today. Whilst observing that in his own experience it was possible to obtain reasonable figures, Mr. Ben Sayer of Brough, Westmorland, commented that with the recent increases in wages and other costs it would be difficult to stand any reduction in rates or any further rise in expenses. Mr. Sayer has five A licence units engaged on general haulage and one contract vehicle. In cases where there are a number of hauliers all serving one customer he has found that there is too often a great deal of difficulty in obtaining agreement to adjust charges. In his experience trouble was particularly liable to arise from this cause at large quarries.
Ignorant of Business Economics
In country areas especially, severe competition is likely to arise from the activities of owner-drivers with a single wagon but with minimum overheads—no wages to pay and no garaging expenses. Such operators were often hard workers, said Mr. Sayer, but completely ignorant of the economics of the business. If they got themselves into difficulties they were liable to continue working longer and longer hours at lower and lower rates to try to keep ahead of their liabilities.
Considering the various rises in costs that affected the road transport industry the general level of rates was shocking, affirmed Mr. H. K. Lawton, of H. K. Lawton Ltd., Blackpool, a company operating seven vehicles on B licence and handling substantial quantities of provender, solid fuel and building materials. One of their biggest problems arises through competition from Contract A operators, some of whose charges bear little relation to the economic level which is essential for an established business to maintain. Mr. Lawton was sure that smaller hauliers looked to the big operators to set a good example but he thought that in too many cases this did not happen.
In one instance locally there was agreement that requests should be made for an all-round, and eminently justifiable, rise of 10 per cent. Details of the proposed increase were given to one important trading concern which was served by Lawtons and two other operators. The customers concerned afterwards told Mr. Lawton that he was the only one to ask for this particular figure. He later discovered that his major competitor had asked for an increase of only 5 per cent. Thus the new rate was fixed, at an additional 5 per cent—and they were lucky to get that, though if all concerned had stuck to their guns their increase would have been double.
Hauliers in certain spheres were suffering from severe competition as a result of uneconomic figures being quoted 04 by British Railways, said Mr. W. M. Mitchell, of Yorl who runs half-a-dozen vehicles. He said that some con modities were being carried at levels where it just woul not pay a haulier to uplift the goods. Mr. Mitchell fe that if changes occurred in the Budget that caused rises i road transport costs it might still be difficult to persua< customers to accept any immediate increase in charge Competition was currently quite lively so that custorne who objected to paying would stand a good chance c finding an operator who would do the work at the old pric or, if pressed, for even less.
Mr. Mitchell's traffic consists principally of fruit, vegt tables and general goods, and he finds that it is usual possible to maintain rates on a fair basis in his home distri, but that the level of charges tends to become depressed c the London run and on routes leading towards Scotian, In both these cases trunk operators often have spa, capacity on return working. On the matter of unexpecte delays at collection and delivery points, Mr. Mitchell fe that one of the advantages that rested with the sma operator was that he personally knew where many of ti loads were going and what the chances were of serial delays. In view of his particular knowledge he was ab to make .a fair 'estimate for particular jobs. Difficultil that arose on this type of work were few enough to I absorbed by the general round of steady running.
Delays that had a really serious effect on the road tran port operator were those that occurred at the docks, I wl told by Mr. James Caffery of James Caffery and Sons Ltid this company operates an 11-vehicle fleet at Northwic Mr. Caffery estimates that the docks are to blame fi something like 80 per cent of road transport hold-ups. F was hopeful, however, that in the course of the presei year the campaign for a quicker turn-round would hal some good effect. In this connection he pointed out th, the question of demurrage charges had been discussed fo
years without any useful result. Future rises in cost which would have to be recouped, would clearly necessita a direct approach to the customer. Without deprecating proper competitive spirit in business Mr. Caffery felt th, competition was a thing which was liable to be overdon At times this resulted in the carriage of traffic at rates whic brought no benefit to the operator whilst possibly unde mining the position of fellow members of the industry.
Customers Sympathetic
Discussing the difficulties which some hauliers repo they encounter when giving notice of their intention increase rates, Mr. T. Fisher, of Cottingham, Hull, wf operates six A-licensed vehicles mainly on long-distam work, told me that when the costs situation was fair explained he had always found his own customers receivt him with some sympathy. Armed with the knowledge fit; any suggestion for a rise in rates had had proper justific, lion, Mr. Fisher has never found a customer who has flat refused, although in a number of cases it has been necessal to negotiate terms.
The biggest bugbear of the whole transport industry, I said, was-waiting time at docks, and factories, and a prop+ ;ponse to the appeals for quicker turn-round that have -eady been mentioned would undoubtedly serve to keep arges at lower levels. In this matter of delays, contended r. Fisher, private customers were guilty as well as the cks and he quoted one instance where, after sending out lorry with a driver on double-time during the weekend, was held up for eight hours, virtually the whole of a irking day. Surcharges in respect of unexpected diffilties arising in collection, delivery, or both, were just t recognized in the road haulage industry and that being , said Mt. Fisher, what was wanted was a consciousness the part of every customer of the need for a measure friendly co-operation.
W. G. Eales Transport Ltd., of Wellingborough, runs me 35 vehicles and its associated company, F. Mallard ansport Ltd., of Earls Barton, about half that number that they can hardly be described as falling into the all operator category. Perhaps in these circumstances body would expect them to respond to outside pressure reduce rates, However, one of their executives, Mr. H. W. ills, told me that cuts in charges had actually been sought :ently by an important company dealing with building d road making materials. The fact that the customers ncerned were displaying this optimistic approach sugsted that at least they must have received attractive offers im other directions. Mr. Mills believed that following :ent wage increases the average haulier will be quite able to absorb any further rises so that additional imposts the road transport industry through the Budget would oessarily have to be passed on immediately to the storners.
se Question of Outgoings
For some reason, whilst everything else seemed to go in price from time to time, the business world regarded id haulage rates as something which ought to be an 7.eption, Mr. Herbert J. Carter, of George Carter and ns Ltd., Liverpool and G. C. (Liverpool) Ltd., told me. amining the question of outgoings, he pointed out there d been wage increases recently, there was a rise in fuel sts and in insurance. Furthermore, a point that many uliers did not take into consideration was the fact that :es on property were likely to rise, industrial premises Tering more heavily than domestic buildings.
A further item that was often omitted from the smaller uliers' calculations was the growing cost of repairs and ires, this latter being the sort of expenditure which came der review only at periodic intervals. Mr. Carter felt tt if there was general agreement among operators on !, need for a rates increase, a situation which seemed be amply demonstrated by the items quoted, the cusners would see there was good reason for the change take place. When the last general increase of 7+ per it was made it was accepted after due explanation by his principals. The two Carter companies operate a at of 14 vehicles, three of them on A licences and 11 on licences.
14r. George Howlett, of Padbury, Buckinghamshire, who substantially a milk haulier, runs five vehicles, three of !rn on A licence and two on Milk Marketing Board B !flees. Mr. Howlett contended that in an area such as his, thout much to draw upon in the way of industry, it ould be difficult to obtain a general rates up-lift even if uliers proved to have been penalized by the Budget or other rising charges, Of course, so far as the Milk Marketing Board work is concerned, the rates are a matter of direct negotiation. In this connection Mr. Howlett expressed the view that the M.M.B. operating cost figures, presumably assessed from their own fleet records, were extremely difficult for the ordinary haulier to equal. This may, of course, be because the loading and operation of the Board's own fieet are more strictly controlled than is customarily the case with the independent haulier.
Inadequacy of Rates Increases
The inadequacy of the rates increases that had been obtained in the past was the subject of complaint by Mr. T. F. McNeill, managing director of Frank C. Jackson Ltd., Bollington, Cheshire, who called my attention to one 60-mile haul where the wartime figure was 17s. 6d. a ton. Despite the inflationary spiral of the past 18 years the operator concerned was still obtaining only 22s. Too high a proportion of the haulage industry, he felt, was subsisting on figures that were regarded as no more than adequate in 1946-47, the sole thing which had made this state of affairs at all possible being the increased carrying capacity of the vehicles. Only on the smaller consignments had it been practicable to get a more adequate advance.
When I talked to Mr. Harold Day, of H. V. Day and Sons Ltd., Leicester, a company running 15 vehicles, he was firm in his view that road transport industry should receive a better return for its labours. He related that 27 years ago he was handling coal on a particular haul at 4s. 3d. a ton; today coal was being carried over the same route and distance at less than the rates which applied 36 years ago. Mr. Day attributed the present position on rates to the weakness of the licensing system under which he was convinced there was far too much illegal operation.
Reluctance to Talk
In many cases operators with whom I discussed the matter showed a marked reluctance to talk about their satisfaction or otherwise with the prices they obtained for their services, no doubt feeling that any comment might reflect unfairly on those known to be their customers. This was particularly the case with hauliers relying for the bulk of their business on one or two large concerns.
All in all the operator working in the small-to-average range, continues to look hopefully for a better deal in the future. But it is clear that all arguments in favour of more advantageous terms for road transport will be of little avail so long as there is a Fifth Column of hauliers in the industry who insist on filling their vehicles even if this involves running them for practice rather than for a fair return.