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Costing Trailer Operation

5th February 1965, Page 117
5th February 1965
Page 117
Page 118
Page 119
Page 117, 5th February 1965 — Costing Trailer Operation
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Which of the following most accurately describes the problem?

ADVICE ON TRANSPORT PROBLEMS by S. BUCKLEY, ASSOC. INST. T.

ASUBSTANTIAL proportion of road transport operation is undertaken by vehicles towing trailers and in particular, of course, semi-trailers. In recent statistics published by the Ministry of Transport these are shown to covet a wide range of types and sizes whilst the bodies fitted have many applications. In an analysis of C-licensed articulated vehicles by nature of business of operator, 9,500 vehicles of this type are shown to be engaged in the distributive trade, whilst the next two largest groups, each with 3,300 vehicles, are concerned with construction and food, drink and tobacco manufacturing.

• An early inducement to the employment of articulated vehicles in the immediate post-war years was their comparatively, ready availability as compared with heavier multi-wheeled rigid vehicles capable of carrying a similar load. During that period, incidentally, the maximum load recommended by the manufacturer for most quantityproduced vehicles was around 5/6 tons. To carry 8 tons required a much larger outlay on a quality produced vehicle until the arrival of the mass-produced 8-ton artic.

In the years since then, the load-carrying capacity of both rigids and artics has increased but there is still this differential as between, say, the 7/8-ton rigid and the 10-ton articulated vehicle which provides substantial economic advantages when exploited in appropriate circumstances. , The latter qualification is very necessary, because one of the major criticisms of the road transport industry is directed at the slow-moving, overloaded, articulated vehicle. Unfortunately, this practice not only brings criticism on the industry but on a particular type of vehicle, which is unjustified when they are rightly used. Similarly, operators with long experience of articulated vehicles are by no means agreed that the reported tendency to jack-knifing is valid if a capable driver, is at the wheel.

An overriding advantage of the articulated vehicle is that the vehicle itself is paralleled by the functional division of transport operation between engineering and traffic departments. The tractive unit is solely the motive unit and accordingly the direct responsibility of the engineering department, whilst the trailer and the load it carries is likewise the concern of the traffic department.

The opportunity that articulation provides for making

this literal separation can be exploited in several ways, ideally, the principle of articulation cannot be exploited to its maximum advantage unless one or more spare trailers are available. But even when a tractive unit and trailer is employed virtually as a single vehicle, as is often the case with a small operator, there can still be economic advantages where suitable traffic is being moved. The overall dimensions of the platform of an articulated vehicle will normally be greater than those obtainable with the corresponding chassis produced as a rigid vehicle.

Additional advantages are manoeuvrability, again assuming an experienced driver is employed, and flexibility not only in facilitating loading and unloading but also in maintenance where the presence of a load (as might be inevitable with a rigid vehicle) could complicate the work involved.

In recent years there has been a substantial increase in the amount of time lost at terminal points due to loading and unloading difficulties. Moreover the insistence on precise delivery times being met is increasing, throughout trade and industry. In some industries, including the motor industry, only the availability of spare semi-trailers can ensure the operator in meeting a very strict delivery timetable.

There are also many industries in addition to agriculture which have acute seasonal peaks. Although these may be met to some extent by the hiring of vehicles, in other circumstances the actual journey times could be met by the existing fleet if some means were found of substantially reducing turn-round times during these peak periods. Here again, the availability of spare itrailers could provide a solution.

Whilst articulated vehicles may meet the special needs of operators confronted with excessive terminal delays or peak periods, the more positive and ideal use of this type of vehicle is to improve overall productivity under normal conditions. Such improved productivity is to some extent still dependent upon turn-round times, but with the qualification that under normal conditions these will have already been reduced to a practical minimum. But even where such conditions prevail, a saving may still be made if the vehicle can drop the loaded trailer and collect an empty one immediately and so return to the loading point.

Specialized bodywork is increasingly featured on commercial vehicles and recently has appeared more widely in manufacturers' lists. Where there is sufficient of the particular traffic available, then such additional outlay as is occasioned by the specialized bodywork can be justified. But there are circumstances where specialized bodywork is required only spasmodically so that the inherent economic advantages are Considerably diluted, if not removed altogether. Here again, as with seasonal peaks, the availability of not only spare trailers but ones fitted with alternative types of bodywork could provide a solution to this otherwise intractable problem.

As an indication of the cost of operating an articulated vehicle with alternatively one, two, or three semi-trailers, the following estimates are given. A 10-tonner, being one of the more popular types of artic, has been chosen as an

example, with an overall cost of £2,170 for combined tractive unit and trailer. With an unladen weight of 4 tons 12 cwt. the annual licence duty would be £78 and, allowing for a proportion of the A licence fee, the cost of licences would be equivalent to £1 12s. 10d. a week. The cost of wages to the employer amount to £11 I Is. 6d. This is based on a 42-hour week with rates appropriate to the current R.H. 80 plus the addition of the national health contributions payable by the employer and an adjustment to permit holidays with pay. No allowance is here made for overtime working.

Rent and rates in respect of garaging the vehicle are reckoned to cost 6s., whilst vehicle insurance adds £3 9s. 10d. a week. This is based on an annual premium of £174 14s. to provide comprehensive cover in a medium risk area. With a chosen rate of 6 per cent, this results in an equivalent weekly interest charge of £2 12s. Od., so giving a total, for the five items of standing costs, of £20 I 2s. 2d. As an average weekly mileage of 800 would be appropriate the standing cost per mile would then be 6.18d.

The main item of running costs is, of course, fuel. Where this is purchased in bulk at 4s. 8fd. a gallon, inclusive of the recent increase of 6d. in fuel tax, and a rate of consumption of 11 m.p.g. is maintained, the resulting fuel cost per mile is 5-11d. Lubricants are reckoned to add 0-29d. and tyres 2-31d. a mile. This latter calculation is made on a mileage life per set of 30,000.

Maintenance is reckoned to cost 2.73d. per mile, inclusive of washing, servicing and repairs, whilst depreciation adds 2-58d, per mile. The balance to be written off is obtained by first deducting the equivalent cost of the original set of tyres from the initial price of the vehicle (£2,170) with a further reduction in respect of the estimated residual value for both tractive unit and trailer. For the class of vehicle concerned, an estimated mileage life of 150,000 is assumed.

This gives a total for the five items of running, costs of .13.02d. per mile or £43 8s. Od. a week, still assuming 800 miles are averaged. The addition of these amounts to the standing costs already calculated gives a total operating cost of 19.20d. per mile or £64 Os. 2d. a week.

If a spare trailer also is operated, making two in all, then it will be appreciated that the combined mileage run by the two semi-trailers will be the same as that of the tractive unit so that, in effect, though not in actual operation, there will be no additional running costs, stil assuming of course that the average weekly mileage of th tractive unit remains at 800. For practical purposes, however, it could be contended that some additional servicing of the second trailer would be necessary. Allowing a nominal 12s. 6d. a week for this task, the additional maintenance cost per mile would then amount to 0-19d.

The chief addition to costs arising from the acquisition of a second trailer would be to the standing costs. Allowing for an outlay of £750 for the trailer, interest charged again at 6 per cent on this amount would approximate to 18s. 3d. a week, or 0-27d. per mile. As already estimated the total operating cost per mile when operating with one tractive unit and one trailer is 19-20d. When a second trailer is acquired there will be an additional standing cost per mile, in respect of interest, of 0.27d. and an additional running cost of 0-19d., so giving a total operating cost for the one tractive unit and two trailers of 19.66d. If a second spare trailer is acquired, making three in all, the overall operating cost then becomes 20.12d per mile.

Because road transport serves virtually every trade and industry there can be a very wide range of circumstances applying at terminal points. Any attempt therefore to generalize on such circumstances must be arbitrary in the extreme; but nevertheless there is a substantial proportion of transport operations where there is relatively little or no difficulty at one terminal point although substantial improvements can be obtained by the availability of a spare trailer at the other end. But ideally the full benefit of articulation can only be obtained with spare trailers at each terminal point whilst the third is coupled to the tractive unit en route between the two points.

Although not directly arising from either technical or economic aspects of operating articulated vehicles, one qualification must be added. The benefit of providing one or more spare trailers will only be realized if there is available a corresponding and sufficient loading staff to deal with these spare trailers, bearing in mind that no other personnel such as driver or mate will be in attendance during loading or unloading.

Although by comparison with the articulated vehicle the drawbar trailer is used less frequently, the combination of solo rigid vehicle and trailer can provide advantages in ppropriate circumstances. Accordingly, the operating osts of a 9-ton platform vehicle with drawbar trailer are Low given. The initial cost of the vehicle itself is reckoned t £2,960, whilst the unladen weight is 4 tons 15 cwt. When ■ perated solo the annual licence would amount to £78, so iving an equivalent licence cost per week of £1 12s. The ost of wages to the employer is reckoned at £11 1 Is. 6d. ad rent and rates at 4s, Vehicle insurance costs £3 8s. 9d. nd interest £3 1 ls. a week. These five items of standing osts therefore add up to £21 7s, 3d. a week or 6-40d, a lite, again assuming a weekly average of 800.

The five items of running costs per mile are estimated t: Fuel 4-69d., lubricants 0.28d., tyres 1.79d., maintenance .85d. and depreciation 1.93d. total 11.54d. a mile. The orresponding running cost per week is £39 9s, 4d., so giving total operating cost of 17-94d, a mile or £59 16s. 7d. a reek.

The addition of a drawbar trailer increases the annual cence duty by £20, the equivalent of 10s. 5d. a week. As is a statutory requirement to carry a mate, additional ;ages would therefore be involved on that account alone. Ldditionally, as the combined vehicle will now be carrying n increased payload, the driver also will qualify for a higher rate of pay. There will be an addition of 19s. for rent and rates, 7s. 9d, insurance and £1 2s. 7d. in respect of interest charged on the additional outlay of £1,025.

Whilst obviously there will be no direct fuel cost for the drawbar trailer there will be an increased consumption by the towing vehicle which will be reckoned as equivalent to 1.25d. per mile. Lubricants add 0.03d., tyres 0-86d., maintenance 0.59d. and depreciation 0-49d., so giving a total running cost of 3.22d. and a total additional operating cost for the trailer of 7-67d. Combining the two the total operating cost for vehicle and trailer is therefore 25-61d, a mile or £85 7s. 9d. a week.

If the use of the trailer is not ascertainable in advance because of the spasmodic fluctuation of the work involved, then it might not be a feasible proposition to arrange for such items as licensing and insurance to be suspended in respect of the trailer when not in use, Assuming, however, that the mate could be otherwise employed when the vehicle was operating solo, then £2 19s. 9d. a week would still remain to be added to the total operating cost to allow either solo or trailer working, so giving an amended total of £62 16s. 4d. when, in fact, the 9-tonner averaged 800 miles a week as a solo vehicle..

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Organisations: Ministry of Transport

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