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RHA probe into road haulage costs
Page 38
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• A five-year exercise on transport costs is being carried out by the Road Haulage Association with the professional assistance of the Centre for Interfirm Comparisons Ltd.
It follows a survey of the 18,000 members of the RHA and a feasibility study by the RHA working party on costs. Proposals for the exercise came to the national execufive council of the Association from the working party.
It is estimated that in the first year the cost will be at least 120,000 since this will involve the examination of figures covering two years from each participating member. The estimated minimum cost for each of the four succeeding years is E10,000.
The intention is to arrive at a series of cost indices for use by hauliers in negotiations with their customers on rates. The information will increase efficiency and productivity both by providing a more exact guide to the costs incurred by individual hauliers and by giving those hauliers who take part in the exercise the necessary basis for comparing their costs with those of other operators in the same field.
In its report on road haulage charges the National Board for Prices and Incomes has criticized the system which the RHA previously adopted of blanket recommendations for increase in rates.
It has been accepted by the RHA, as well as by the Board, that in a diverse industry such as road haulage the effect of increases in cost varies considerably. It is also realized that the absence of accurate information on costs often makes it difficult to assess the benefit of proposals for improving productivity.
These obstacles to progress can be solved, says the Association, only by a survey on a wide scale such as is now being undertaken. The inquiry in the first instance will concentrate on four groups covering the great majority of RHA members; those engaged in general haulage, long-distance haulage and in agricultural and tipping work.
Because relatively few members specialize in one branch of haulage the inquiry will also be dealing in many cases with "mixed" firms, such as those engaged in longdistance and general haulage, as well as with specialists. Only operators with 10 or more vehicles are being invited to participate, although means will be sought for including comparable information from smaller operators.
It is considered essential for the success of this scheme that approximately 150 operators should agree to take part. They will ultimately obtain substantial additional advantages since it will be possible to let them have details of inter-firm comparisons not available to other operators.