Six Years to Success
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IN just over six years there has developed what is claimed to be one of the largest clearing houses in the country—J. and H. Transport Services (Peckham), Ltd., 11a Selden Road, London, S.E.15. In addition, the company operate 45 vehicles and wholly employ the capacity of 24 owner-drivers' lorries.
The company's main problem is not in obtaining traffic, but in finding vehicles to carry the traffic that is offered, a situation intensified by the tesults of the rail strike.
In January, 1949, Mr. W. A. Heymann, former traffic manager of a big London concern of transport contractors and packers, formed a partnership with Mr, E A. Jeune, a haulier and garage owner. They started business as a clearing house and in the first year their turnover was £20,000.
Expanded Tenfold
The company were incorporated in February, 1951, with £500 capital, a sum which was later expanded tenfold. Mr. Heymann is managing director. Mr. Jeune takes directorial responsibility for the mechanical side.
Denationalization presented the opportunity to develop haulage activities and the first of a series of purchases was made in April, 1954: Provincial branches were opened in Liverpool in April, 1952, Manchester in March, 1953, Birmingham in January, 1954; and Glasgow in January this year.
Mr. R. Disley, who joined the • company in April, 1952, and becarrie a director in 1954, is in charge of the northern Offices. He Was formerly a. transport eXecutive of a large company.
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At the beginning of July last, J. and H. Transport had 15 vehicles, seven of which were based in
London, six in Liverpool and one each in Glasgow and Birmingham.
Tenders had been placed for further vehicles required for delivery work in London, distributing the loads of trunk vehicles and collecting goods for them. Vehicles were hired for this work and the cost was fairly high.
. The bids were outstandingly successful and overnight the fleet was almost trebled.
Thirty eight vehicles were acquired. Eight were assigned, -mainly to .contractors working largely for the company, and one was transferred to F. A. Jeune and Son, Ltd., the parent concern.
J. and H. Transport added one lorry to their 15 trunk vehicles and allotted the remaining 28 to local work, of the kind described, within a 70-80-mile radius of London. Some are occasionally used for trunk journeys between London and Birmingham, and Lancashire and Birmingham.
The fleet now comprises an A.E.C., a Scammell, two Thornycroft and four Leyland eight-wheelers, eight Bedford 7-tormers with Leyland Comet oil engines and a Seddon 8-tonner. These are the trunk vehicles, the Seddon being the latest addition. Many are new replacements of acquired lorries. Twentyone of the 28 vehicles used for local deliveries and collections are Bedfords, four are Commers and one is a Thames. All are 6-ton platform models.
The 17 regular trunk vehicles operate between London and the Lancashire cities. Five shunter drivers are employed in Liverpool, four in Manchester and eight in London. The lorries of associated hauliers link London, Birmingham and the important towns in Scotland.
Naturally, it is in the company's interests to find loads for their own and associated vehicles (which are painted in J. and H. colours) before loading other contractors' vehicles. Because of the large volume of traffic available, this practice entails no unfair discrimination. On an average, loads are allocated daily to a total of 125 vehicles, about 60 of which may be foreign-based." Staff are trained to give every help to sub-contractors' drivers, even to the extent of finding lodgings for them.
The concern's own vehicles carry about 1,000 tons a week, goods including mineral waters, soap and raw materials for soap-making, cattle food, paper and 'cardboard, steel, sugar, hessian, photographic materials and cables. Loads offered the clearing-house section are shifted within 24 hours.
The organization was subject to acute pressure during the rail strike, a•: customers' demands increased. An interesting traffic handled at that time was the delivery of spare parts of dynamos to British Electricity Authority power-stations in the south of England from Manchester, special priority having to be given. Containers of ice-cream were also carried all over the country.
Parcels traffic rose, but Mr.
Heymann admits that although the amount of work done during the strike was much greater than normal, profits did not rise commensurately because of the expense entailed in
100 tons of traffic instead of 60 tons before the strike. During the stoppage, 250 tons a day were handled for him. This customer has rail sidings, but is taking precautions against a recurrence of a breakdown in rail facilities.
Another customer employed road transport, through J. and H. Transport, for the distribution of a commodity carried in drums, which were returned empty. Although the rate was higher than by rail, road transport proved cheaper, because less damage was suffered by the drums and empties were returned quicker. It was concluded ; that a further saving could be made if road transport continued to be employed, as a smaller pool of drums would need to be held.
Other customers discovered that road transport was cheaper than rail and gave better service. The total effect has been to increase business by a proportion which cannot accurately be gauged for a while, but which may be of the order of 50 per cent.
Mr. Heyrriann insists upon strict adherence to the law on drivers' hours and has no sympathy with operators who disregard it. To do so, he avers, is completely unnecessary in times when there is plenty of traffic to be handled, quite apart from the danger of vehicles driven by fatigued men.
Drivers have a guaranteed 55-hour week, with a minimum wage of £10 Its, lid. This sum is paid if the vehicle is unavoidably off the road or even if the driver, is ill.
For every single trip in an eightwheeler to Warrington or return to London, £3 5s. 4d. " trip money" is paid. The sum applicable to a fourwheeler is £3. Drivers normally do six single trips a week, and regularly earn 118-03 a week, plus a no
accident bonus. Staff relationships are extremely cordial and labour troubles are unknown.
Vehicles are placed in the care of their drivers, who are thus accorded a responsible status. At the Peckham premises there is a range of main
tenanee equipment and vehicles arc inspected every week, when engine oils are changed, and are more thoroughly serviced monthly.
Costs are closely recorded. Depreciation is spread over three years. I questioned Mr. Heymann on this matter, considering the period to be short. He pointed to the records of an eight-wheeler.
Each vehicle has its own profitand-loss account, and its weekly costs are deducted from the profit it has earned. The particular vehicle concerned was showing a handsome profit despite a debit for depreciation calculatedon a basis which many hauliers would consider severe.
As the—clearing-house side of the business paid off the total overheads, no amounts under this heading were debited against the vehicles, a practice which might not appear to be textbook accountancy, but points to the advantages of a combined clearing house and haulage organization. The company belong to the Road Haulage Association and the National Conference of Road Transport Clearing Houses.
As the company have grown so quickly, the Peckham premises are no longer big enough, although extra garage space was rented for the large number of vehicles bought in July. A narrow arch leads to a yard, on one side of which is a building housing a store for goods, and the repair department. Offices are in a prefabricated structure. In the neighbourhood are small painting and welding contractors who work for
J. and H. Transport. It is hoped shortly to procure more commodious premises as a step towards further expansion.