Rates Increase: Hauliers Ha V(
Page 48
Page 49
If you've noticed an error in this article please click here to report it so we can fix it.
Mixed Views on Vexed Question
Not all customers will be asked to pay another 5 per cent
nNCE bitten, twice shy, seems to be the reaction of many hauliers to the R.H.A.-recommended 5 per cent rates increase which came into effect on June 1. As has happened before, there has not been a unanimous approach to the subject by operators: some hauliers have on previous occasions applied increases which they felt to be justified, only to discover that their competitors had not followed suit. Not only is this experience causing some operators to hold their hand, but nearly half of the haulage concerns approached this week by The Commercial Motor had some reservation about the actual justification of a 5 per cent rise at this time.
Some felt that the rise was too steep, others that it had come too late, and should have been linked with the wages increase earlier this year and at least one felt that not enough publicity had been given to the proposed alteration in rates.
But whatever their feelings, virtually all the operators approached by this journal made it clear that they are in fact seeking rates increases in some form; naturally enough, in many instances the actual rates are negotiated separately with each customer.
Asked for his opinion regarding the likelihood of full application of the recommended increase in mid-Lancashire, Mr. W. K. Birchall, of Gilbraith Tankers Ltd., Accrington, told The Commercial Motor that his company intended to put the rise into force. It did not expect any difficulties since on the whole customers appreciated that they had to pay adequately for good services and furthermore they knew that the cost of operation was steadily increasing.
The situation in the Scunthorpe area was that hauliers had not met to discuss the question of increased rates. said Mr. F. Robinson of Wright's Haulage. Local operators would be meeting to discuss the matter during the next week or so.
Whilst customers invariably grumbled a little, those who really wanted to rely upon the road haulier would undoubtedly be willing to meet the request for an increase, said Mr. B. Davey of ,A. and H. Davey (Roadways) Ltd., Stoke-on-Trent. Obviously there would not be many difficulties if only all operators stuck to the agreed 5 per cent but the trouble was liable to arise when hauliers—especially small hauliers—agreed to take action and later gave in under pressure from their customers. There had already been instances of larger operators agreeing to take a 24. per cent rise instead of the amount originally proposed.
Too Little Publicity Mr. T. W. Jackson of Key Warehousing and Transport Co. Ltd., Hull, said that in its capacity as a clearing house and as hauliers operating over 30 vehicles the company was endeavouring to obtain the recommended increase in every instance but the customer reaction varied. Where they were successful and the traffic was contracted out, the benefit would, of course, be passed on to the haulier. However, resistance was being encountered in Many instances and some of this must be attributed to the fact that very little publicity had been given to the R10 Association's decision. To the best of his knowledge there had been one announcement on television, one on sound radio and some brief paragraphs in the Press but there had been no follow-through, with the result that the whole idea of the need for an increase was going to take at least a month to penetrate to those outside the industry. Road transport was involved in a constant upward spiral and the rise was justified last January. All the same, it was one thing for the R.H.A. to make a recommendation and another to convince the transport buyer, particularly if the move came as a complete surprise to the latter.
15-ton litasIs
Rates in general were now being based -on the 15-ton load and where customers demanded smaller quantities which made only the employment of the four-wheeler economic, there was really serious need for an up-lift, commented Mr. R. Durham, of R. Durham and Sons Ltd., Billingham-on-Tees, chairman of the R.H.A. Northern area. Mr. Durham said they found that progress could best be made by personal negotiation with individual customers, jointly with British Road Services in some instances, and that this was proving more satisfactory than any form of ultimatum. Where operators in the area were most concerned over the matter of a rise was in respect of lots up to 6 tons and on part loads. They were agreed that special efforts should be made to raise the accepted level in these respects. At many industrial premises considerable delays were experienced in loading and unloading and this factor had to be taken into consideration in their negotiations. Where customers could reduce waiting time by 50 per cent there would really be little need for any change. In many sections of the industry buyers now appeared to be taking, say, two tons daily where earlier, in a seller's market, they had been dealing with less frequent lots of perhaps 15 tons. This represented
a further rise in hauliers' expenses which had to be offset in some way.
Mr. A. Dunn, managing director of Road Services (Forth) Ltd., observed that they had experienced a useful degree of success in connection with the smaller consignments, but had been much less fortunate with bulk traffic. He felt that not sufficient hauliers in Scotland were really endeavouring to obtain the up-lift, in short they were beaten before they even put in an application. However, it had to be borne in mind that during the past six months there had been a recession in trade which had resulted in many customers developing a strong spirit of resistance to any rise in their own expenses.
Not Well Timed Up till now Mr. S. Mansfield, a director of John Harris (Cartage) Co. Ltd., has staunchly supported the R.H.A. rates committee, but doesn't think this latest recommendation has been timed well, or even that it is fully justified.
It would be difficult to get this one over to the customers, said Mr. Mansfield, many of whom are looking for cheaper haulage rates, not dearer ones. In some instances haulage rates had gone up by more than 20 per cent in the past three years and not all of this had been justified, he said.
Mr. Mansfield added that so far as his firm was concerned, future rates would depend largely on separate negotiation with each customer and that the recommended flat 5 per cent increase would not be applied in its entirety to everyone.
Reaction from Victory Transport Ltd., Southampton, is that, generally speaking, an increase is justified. But Victory will not apply this without exception. Speaking for the company, Mr. J. H. G. Barber said that in the case wheie a customer's traffic had been increased the new rate would probably not apply. Other exceptions would be made, too, in cases where some customers' goods had become easier to handle, thus making the operation more economical.
In general the recommended increase will be applied by Victory in the majority of cases.
3 per cent Justified Mr. L. Walsh, a director of Atney's Transport Ltd-. Oxford, said his firm recognized the difficulties facing the industry in the way of rising costs and felt there was justification for an increase —although not to the extent of 5 per cent. A figure nearer 3 per cent, said Mr. Walsh, is regarded as more realistic and this is what Amey's will apply in most instances. Negotiations will be made with each customer on a personal basis and
increased rates will not necessarily be applied immediately.
From Mr. J. Archer Tribe, of C. Tribe and Sons, Wisbech, came the firm opinion that the recommended increase was fully justified; he said that although there had been objections from some customers the full increase would be applied generally from June 1.
Completely Justified
One haulier, Cousins Transport (Hedingham) Ltd., had already increased its charges for some services before June 1 as a direct result of the wages increase granted to its employees last January.
Mr. Clifford, speaking for Cousins, said that a 5 per cent increase had been applied in some instances where it was considered necessary. He considered the recommended 5 per cent increase from June 1 was completely justified in view of rising costs for hauliers and that this would be applied on those services that had not already been increased this year.