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Kft qua&*baLd&ög

9th September 1977
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Page 30, 9th September 1977 — Kft qua&*baLd&ög
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

will( Ott Kaugkfij...

After 24 year's involvement in the road transport industry and being an avid reader of Commercial Motor, the controversial content of the article on three fictitious types of operator prompts me to answer your final sentence for readers' views on "The Good, the Bad and the Ugly" (CM August 12).

In order to put it in perspective, I will, first of all, outline my own company's progress and demise during the last 20 years. After leaving school at 15, I worked for five years as an apprentice hgv fitter and left on completion to join my father, a three-vehicle haulier of pre-war origin. After two years of general duties, we secured a contract with a manufacturer in business in the UK. We provided a new vehicle driven by myself.

During the ensuing years, production increased along with our fleet. We successfully applied for 10 A-licences which we subsequently obtained after appearing in London at an appeal on behalf of BRS. And the ensuing years saw our fleet build up to 24 vehicles and 54 semi-trailers. Work was predominantly for the same customer, who kept 80 per cent of the fleet fully occupied.

Up to 1973, rates were increased, annually, with little or no resistance to amounts, provided back-up figures were given. However, during the latter three years as inflation and particularly depreciation began to bite, rates negotiations were less than cordial.

The years 1973-1974 and 1975 all saw a worsening financial situation where we could not totally rely on the income from the transport fleet and moves were made to secure alternatives.

During the latter end of 1974 and early 1975, we were successful in securing, with Fiat Commercial Vehicles, the full distributor rights for Merseyside, SW Lanes and N Wales for their range of commercial vehicles.

During the latter end of 1975, our major customer steadfastly refused to negotiate or meet our claim for a 17 per cent increase in rates. September 1 976 saw us completely emptied out as a supplier of transport to the said company, due to our refusal completely to be browbeaten and forced to accept totally unrealistic rates.

During my 20 years with this industry, I have tried to put in a lot of unpaid efforts, hopefully directed at improving the industry, being currently vice-chairman of the Transport Managers' Club, treasurer of the Warrington & District Training Group and vice-chairman of the Widnes/Warrington Branch of the RHA.

During our struggle for rates increases, our customer asked numerous local hauliers for rates comparisons and out of 10 replies, ours was, currently, third cheapest The replies ranged for the same contract from £140,000 to E220,000, ours being £152,000. It was gratifying that most replied that they would quote, but, respectfully, did not want the work.

However, not all were so honourable. One company could not wait to get their hands on our traffic and refused to meet us to discuss the problem of ourselves and the question of rates with our Customer. In turn, our major customer emptied our company out totally on the hour from our contract which we had discharged with total satisfaction for over 14 years. Five of our drivers left to drive rental trucks for the company which gained the contract.

So why do we always criticise the small and "cowboy" operator, when, in my opinion, much criticism must be levelled at the larger operator for the present sick situation prevailing in our industry? In our case, we had a large group coming into another operator's area with scant regard to RHA and personal appeals to stand his distance while sensible negotiations were carried out.

Our own business during the following 12 months has experienced traumatic situations, but due to staunch support from the remaining 10 drivers and assistance from local manufacturers, we are still in existence although much smaller, ie, 10 vehicles. Survival, however, does not stem from transport. It was our decision to look for other sources of income that could be successfully allied to and run in conjunction with our transport activities.

In your article, repeated reference is made to Mr Naughty and Mr Nasty and the cutting off of their source of vehicle. Our company is now very much involved in selling this type of vehicle to operators. If we did not, where would your Mr Nice obtain his deposit for his new vehicle?

His trade-in and discount, in the majority of cases, is his only form of paper money available for his new vehicle. Having taken his part exchange, and based on our own bitter experience of trying to be honest and upright in this trade, we have no conscience in selling the trade-in to Mr Nasty, who, in turn, guarantees, by virtue of our profit on the deal, the financial security of our transport company.

D. T. CHADWICK, Director, G. A. Chadwick & Son Ltd, Merseyside.

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Organisations: Transport Managers' Club
Locations: London

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