lental rates to rise . " S loses
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RAILERENT expects trailer mai rates to rise during )86.
The company's managing rector, Mike Dibb, said last eek that the over-supply of ailers for short-term rental as driven rates down .roughout the industry.
"Short-term rental rates are using concern. They must )mc back to realistic levels if C arc to continue our investent in the industry."
According to Dibb, trailer -ices rose last year by an verage of 10 per cent hereas rental rates were wer than in 1984. Because the long life of a trailer, it not easy to reduce the tmber of trailers quickly to arch the reduced demand. For its part, Trailerent is >t to add to its short-term ailer rental fleet this year, stead. concentrating on Intract hire.
Dibb predicts a four per nt growth in short-term ntal demand, taking up the ick in the market and allow ing rates to rise.
Truck rental rates have faired slightly better in Traiierent's experience; its Truckrent operation was started a year ago and has grown as expected to a fleet of 200 vehicles.
Here, too, contract hire holds more promise than short-term rental, partly because of the phasing out of first-year capital allowances. Trailercnt opened a new combined trailer and truck rental depot in Gateshead this week, bringing its network up to 17 depots, six of which offer truck rental. Dibb hinted at new depots planned for South Wales and East Anglia and added that the company could diversify into the supply of vehicles with drivers, too. Nor did he rule out expansion into Europe.