Problems of the
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HAULIER and
CARRIER
IT is necessary now to differentiate between large and small parcels and long and short distances over which the packages are to be carried. I imagine that most readers will appreciate instinctively that the smaller the parcel the greater the charge should be in proportion to the weight. If they do not, let them consider extreme cases; first, a 10-cwt. consignment for delivery at one destination and, secondly, a consignment of the same weight, but made up of parcels each of 7 lb., all for different destinations. That would he 160 parcels and, if that number had to be delivered on the outward journey and an equal number on the return, the work could not be done in a day.
Small parcels are less profitable than large ones, because the small ones involve more calls for collection and delfVery. Over a short route, the cost of delivering a 1-lb. parcel might he as much as that of one weighing 1 cwt., so that any attempt to base a scale of charges on weight alone would be impracticable Similarly, in respect of distance, where consignments have to be delivered over short distances, the expense is proportionately greater than over long journeys. Sometimes it is suggested that, so far as distance is concerned, it would simplify matters to apply a flat rate, such as a charge of 3d. per 7-lb. parcel, no matter where it was picked up or delivered over the whole route regularly operated by the service.
The objection to that system comes from customers
themselves. Those who send their parcels over a long distance are, of course, content, but those whose consignments are over the short journeys grumble. They say if 3d. per 7-lb. parcel be satisfactory for a 20-mile or 30-mile journey, it ought to be possible to effect a reduction for 5 miles or 10 miles, and it is largely to avoid trouble of this kind that a flat rate is usually discarded.
Now, in the previous article, I showed that a charge of #d. per cwt. per mile would produce a revenue sufficient to recoup this haulier for his trouble and afford him a reasonable profit, when all his expenses had been met. The calculations by means of which that figure was reached were, however, based on the assumption that the vehicle made one trip per day and took a whole day over it.
In order to be able to distinguish between large and small consignments, I must begin by assessing a minimum rate, on the assumption that only one collection and one delivery is necessary in each direction. If that were the case, it would be possible to complete the round journey in four hours, allowing three hours to 3# hours for travelling, and the balance for loading and unloading.
According to The Commercial Motor Tables, of Operating 'Costs, the charge for the use of a 30-cwt. lorry should be at the rate of 3s. 10d. per hour, plus 3d. per mile. In this case, it would be more reasonable to take 4s. per hour to allow for certain extra expense arising out of parcels delivery and, on that basis, the minimum revenue should be 16s. for the four hours, plus 17s. 6d. for the 70 miles at 3d. per mile ; total A. 13s. 6d.
That sum is for carrying 10 cwt. for 70 miles and, from that, the cost per ewt. per mile can be shown to 1145 be 0.58d., say 0.6d., which is a fair basis for our calculations for the minimum rates. It is necessary to impress upon readers the fact that these calculations give minimum charges. If circumstances permit higher rates, they should be charged.
Let us consider, first of all, the effect which the size of parcel has on the cost of collection and delivery, taking, in the first case, 1 cwt. as the size of parcel. If the consignment comprises packages of 1 cwt. each, 10 collections and deliveries, instead of one, have to be made.
A recognized figure for the time needed for collection and delivery on a service of this kind is five minutes per call, that period being occupied in locating the person authorized to offer or accept the goods, the signing of documents, the receipt of cash in the case of delivery, or of instructions in the case of collection. In addition, a minute per cwt. is necessa.rY for loading the goods.
Each collection or delivery involves, therefore, an addition of approximately six minutes to the time taken on the trip and, if each unit of the 10 cwt. necessitated a separate collection and delivery, that would add two hours to the total time. Two hours at 4s. per hour is 8s., which is practically 25 per cent. extra to the charge of 33s. 6d. already set down as the minimum for the work. It the consignment consisted of 56-lb. parcels, that extra time would be doubled, meaning an addition of 50 per cent. to the charges and so on. Obviously, this calculation can soon be extended beyond the realms of possibilities, because it would be impossible to collect and deliver 40 28-lb. parcels per day if each parcel involved an individual collection and delivery.
That is, however, to some extent beside the point, as all that I am trying to do is to arrive at proportionate charges for these different parcels so that each pays its share of the total charge.
On the foregoing basis, the price for a 1-cwt. parcel will be 25 per cent, more than the charge per cwt. per mile which was shown to be 0.6d.: it will, therefore, be 0.75d. The charge for a 56-1b. parcel will be 0.9d. per cwt. per mile, which is 0.45d. per parcel per mile and so on. The schedule is shown in Table I.
The correction for distance in this particular case is more conveniently made on a basis of stations or calling places, of which there are 10. These increase the total time by approximately an hour and, if we make the calculations independently of the disturbance of time already caused by differentiation in sizes of 846 parcel, the addition is approximately 10 per cent.
Add that percentage to the above-mentioned charges in the case of parcels which travel merely from one calling place to the next ; add only 5 per cent. to those going from one calling place to the next but one, and 22,, per cent. to those which, during the journey, pass two stations, leaving the other charges as in Table I.
There is still an addition to be made on account of agency fees. For these take 10 per cent., with a minimum of 1d. per parcel. The ultimate figures evolved from this calculation are indicated in the Tables wilich accompany this article. S.T.R.