Middleweights or Heavies?
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• A Comparison of Costs Between a Mediumweight 7-8-ton Oiler and a Heavy 8-9tanner Suitable for Trailer Working SOME of the factors which go to determine the selection of the most economic type of vehicle were discussed last week. These can vary not only as to the size of traffic handled, but also according to the status of the operator. For example, an established haulier with a greater security of traffic may find the heavier class of vehicle an economic proposition, although the same vehicle for the same traffic might be an imprudent purchase for the newcomer.
Alternatively, the characteristics of the goods to be carried and the trade or industry to be served may well be the major factor in determining the maximum size of vehicle and its type. Two examples would he parcels or town delivery work and farm haulage.
Where, however, an operator-whether haulier or ancillary user-is engaged in mediumor long-distance work there may be sufficient traffic from regular sources to permit the use of alternative sizes of vehicle. In this context a comparison was made last week between the operating costs of a 16-ton oil-engined rigid eight-wheeler and an 8-9-ton four-wheeled oiler towing a 7-8-ton drawbar trailer when operating 900 miles per week. "
On the assumption that the eight-wheeler would cost £5,000, the 'five standing eosts per week were estimated to be as follows: Licences, £2 8s., wages, £9 19s. 10d., rent and rate 13s., insurance £4 12s. and interest £3, giving a total of £20 12s. 10d. The standing cost per mile would be 5.50d.
Running costs r mile were _ estimated as Fuel 5.11d.. lubricants 0.28d., tyres 5.12d„ Maintenance 2.50d. and &preen. tion 3,71d., a total of 16,74 Added. to the standing cost per mile, -this gave a total operating cost of. 22.22d. per: mile. Running, costs for the week would be £62 14s., and total operating cost £83 Gs. 10d.
Costs for 8-9-tonner
Similarly with the 8-9-ton four-wheeled oiler, a cost price of £3,500 was assumed, Standing costs were reckoned as: Licences El 4s., wages £9 6s. 3d., rent and rates 10s. 6c1., insurance £2 10s., and interest £2 2s.; total £15 12s. 9d.
Running costs per mile were estimated to be: Fuel 3.54d,, lubricants 0.26d,, tyres 2.56d., maintenance 2.28d. and depreciation 2.72d., totalling 11.36d., which, when added to the standing costs, gave an operating cost per mile of 15.53d. Total running costs for a 900-mile week would be £42 12s., making the total operating costs for the week £58 4s, 9d.
Corresponding costs for the 7-8-ton four-wheeled drawbar trailer were; Licences 8s., wages £9 4s, (which includes not only the mate's wage, but also the extra amount which would be payable to the driver because of increased carrying capacity), rent and rates 9s. 6d., insurance 4s. 4d.; and interest 10s. 10d.; total £10 16s. 8d,, or 2.89d. per mile.
Fuel was reckoned at 1.10d. per mile (resulting from the increased fuel consumption of the towing vehicle when operating with the trailer), lubricants at 0.13d., tyres at 1.36d., maintenance at 0.53d. and depreciation at 0.64d., giving a total of 3.76d., and an operating cost per mile of 6.65d. Running costs for the week thus amounted to £14 2s. and operating costs to £24 18s. 8d. The total operating cost of a four-wheeler and trailer would therefore be £83 3s. 5d. (158 4s. 9d„ plus £24 8s. 8d.).
Although for the purpose of " ' The Commercial Motor' Tables of Operating Costs," wages are based on a 44-hour week regardless of the mileage operated, it was agreed last week that B30 as this example dealt with specific, rather than average, vehicles and 'operating conditions, an exception would be made to this practice.
Based on the arbitrary assumption of a 66-hour week, the resulting addition to the wages item iO the case of the eightwheeler Would be.approximately £6 1 Is., which, when added to the basic operating cost of £83 6s. I0d., gives a total of £89 17s. 10d. Correspondingly for the four-wheeler and trailer, the addition' to the driver's wage would be about £6 Is. 8d., and
£5 16s. 8d. to the mate's wage, totalling £11 18s, 4d. The overall operating cost worked out at £95 Is. 9d.
Unfortunately, in practice, the hypothetical assumption that sufficient regular traffic would always be available seldom occurs, Only too often does the transport manager have to make a decision between the lesser of two .evils in terms Of inefficiency, rather than a clear-cut choice in favour of the most economic vehicle in one set.of circumstances, For example, breweries have heavy peaks of traffic before and during holiday times when, despite the maximum of legally permitted overtime working, some addition to their fleets is required. Similar seasonal fluctuations, of course, occur in many other industries, and it is often under just such conditions as these that the temporary use of drawbar trailers is contemplated.
Continuing the comparison a stage further:I will assume that for a proportion of the year two " heavy " four-wheeled oilers are worked solo an average of 900 miles per week. Recapitulating, the total operating cost for a 900-mile week would be £58 4s. 9d. per vehicle, plus an approximated amount of £6 1 s. 8d. to allow for some overtime working. This gives a total of £64 6s. 5d., or £128 12s. 10d. for the two vehicles.
This latter figure would be comparable with the total weekly operating cost of £89 17s. for the eight-wheeler, assuming for the moment that the routeing of traffic permitted the working of either the eight-wheeler or two four-wheelers operating solo. When peak periods were encountered, however, it would be possible to double the carrying capacity of the two solo vehicles by adding drawbar trailers. This would, admittedly, entail outlay on trailers which would remain spare for a good proportion of the year, but this would represent a much lower outlay than the difference between a four-wheeler and an eight-wheeler.
It would also be assumed, of course, that mates timid. be recruited for short periods. In the case of the ancillary user this might mean the temporary drafting of men from other departmerits. The additional operating cost of the trailer, for the '9Q0mile week has been shown to be a..basic £24 18s. 8d. plus an.estimated £5 I6S.8d. for overtime .wOrking,. making £30 15s. 4d. per trailer. Two trailers at a cost of £61 10s. 8d. per week would virtually double the capacity and would be equivalent to the temporary addition of another eight-wheeler to the -fleet, which inthe same circumstances has been shown to cost
£89 17s. 10d. •
Once, however, the operation of . " heavy " foue-wheeled oilers solo is contemplated, with only occasional use coupled to trailers, it becomes necessary to consider ar.hrther .alternafive. Particularly is this so in the light of the sticcess of _the
medium-weight. 7-8-ton oiler. ,
Under normal conditions at least, the _adoption of this:claSs of vehicle Would preclude the use of a drawbar trailer.. Compensating to some extent for this disadvantage. would. be the lower operating cost. "Dependent on the ratio of solo-to-trailer running "when the " heavY " four-wheeler was used, Itcould be that the overall yearly cost of operating the medium-weight 7-8-tonners, even with the addition of the hire cost (in the case of the ancillary user) or sub-hire costs (in the case of the haulier) because of the inability to draw trailers at peak periods, would be less expensive.
Assuming that the medium-weight 7-8-ton oiler cost £2,000 and has an unladen weight of 3 tons 4 cwt., the weekly standing cost for licences would be 15s. 6d. Wages, in accordance with the new R.H.(64) scale, would be £8 10s. per week for this category (5-10 tons) in Oracle I areas. Added to this would he
National Health and voluntary employers' liability insurance contributions of about 9s. 3d. Making a further addition to compensate for two weeks' holiday with pay, the total amount allocated in weekly wages would be £9 6s. 3d.
Rent and rates are assessed at I ls., whilst insurance, on the basis of a comprehensive policy for an A-licensee is reckoned at £2 4s. per week. Interest at 3 per cent. on £2,000 adds a further It 4s., making the total weekly standing cost £14 Os. 9d., or 3.74d. per mile for 900 miles a week.
Again based on a bulk delivery price of 3s. 10d, per gal., the cost of oil fuel per mile is calculated to be 3.07d., and lubricants 0.25d. A set of tyres would cost approximately £200, which, on the basis of a life of 30,000 miles, gives a tyre cost per mile of 1.60d. Maintenance is reckoned at 2.13d. per .mile," To calculate depreciation, the cost of the original tyres is deducted from the cost price of the vehicle, leaving the balance of £1,800 from which is deducted a further £200 as the estimated residual value. Assuming a mileage life of 125,000 for this class of vehicle, the depreciation cost per mite would be 3.07d., giving a total running cost of 10.12d, per mite. Added to the standing cost, this gives an operating cost per mile of 13.86d.
The cost of operating 900 miles per week would' thus be £14 Os. 9d. (standing costs), plus E37 19s. (running costs); total 1.51 19s. 9d. If, as in the previous example, we add to this total an approximated amount of 16 is. 8d. for overtime working, a final total of £58 is. 5d. is obtained, as compared with the corresponding figure of £64 6s. 5d. for the heavier four-wheeler. . Should traffic conditions be'such that a comparison might be contemplated between (1) an eight-wheeler, (2) a " heavy " four
wheeler, and trailer,. or (3) two medium-weight 7-8-ton oilers, the respective total costs of operating 900 miles per week on these calculations would thus he (1) £89 17s. 10d., (2) £95 Is. 9d. and (3) £116 2s. 10d.
In making these comparisons it has been assumed so far that traffic would be of sufficient volume and. suitably directed to allow these alternative types of vehicle to be operated economically. Once again, in practice that would not always occur, so that the ultimate selection of a vehicle may have to be based on compromise rather than an ideal.
• If, for example, the 900-mile week comprised an average of three return trips of 150 miles for the single journey, there might well be weeks when traffic was short or difficult to " marry "satisfactorily. I will, therefore, assume that in such a week 14 tons p1 traffic was booked to be moved from A to B on. the first trip, .7 tons on the second trip, whilst on the third trip 14 .tons was again available, but made up of 7 tons from A to B and 7 tons from A to C (both 150-mile single journeys.
B. tO C being.140 Miles). •
The total cost of moving this traffic by the eight-wheeler Would thenamount to £89 17s. 10d., plus £6 19s. 4c1.; total £96 17s. 2d. The addition is caused by the cost of running the extra 100 miles at 16.72d. per mile on the last trip to make both deliveries. It is assumed, for convenience, that extra assistance at the outward loading .points would be providedto
compensate for the additional driving time incurred when travelling these extra 100 miles.
The corresponding cost for the " heavy four-wheeler and trailer would be the basic £95 ls, 9d., as previously calculated, plus 100 miles at 11.36d. per mile for the vehicle and 3.76d. per mile for the trailer-0 6s. 2d. On the second trip it would not be. necessary to take the trailer, with a saving equivalent to 300 by 3.76d.-£4 14s. In addition, there would be some saving in the mate's overtime pay, say 10s. The cost of operating the lorry and trailer would then read: £95 Is. 9d. plus £6 6s. 2d. less £6 4s., total £95 3s. lid.
If two medium-weight 7-tonners were employed to move this traffic, one would be fully employed for 900 miles at a cost of £58 ls. 5d., including an appropriate allowance for overtime working. The other would operate for 600 miles, the cost then being made pp of standing costs (as previously) of £14 Os. 9d., running costs (600 by 10.12d.), £25 6s., total £39 6s. 9d.
Arbitrarily assuming that the overtime allowance of £6 Is. 8d. included in the total of £58 ls. 5d. for the vehicle covering 900 miles in the week is proportionately reduced to £4 Os. 10d. for 600 miles, the total for the second vehicle becomes £43 7s. 7d.
The whole of the traffic for the week would, therefore, be moved by the two middleweight 7-tonners at an overall cost of £101 9s. This is higher than the corresponding totals of £96 17s. 2d. for the eight-wheeler and £95 3s. 11d. for the ' heavy " four-wheeler and trailer. The two 7-tonners, however, would provide maximum flexibility under more adverse traffic conditions. Any attempt at an estimate of the possibility, or the prevalence, of such conditions can obviously be made only by each operator according to circumstances. S.B.