Reducing Turn-round Times
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When Traffic Conditions Beyond Operators' Control are Increasing Journey Times and Costs, it is More Than Ever Necessary to Reduce Terminal Delays
MODERN traffic conditions, coupled with restrictions and bans on loading and unloading times on the public highway, are undoubtedly increasing the difficulties of commercial vehicle operation. The extent to which these difficulties add to the cost are not easy to assess, even in specific examples, In this series on March 10 an attempt was nevertheless made to give an indication of what such delays could mean to operators in terms of additional expenditure, coupled possibly with reduced revenue.
A disturbing aspect of this problem is the likelihood that traffic conditions may well worsen before any advantages to be derived from the proposed road improvement schemes can materialize. Meanwhile, with so many factors beyond his control, the operator can do little more than readjust his working schedules to meet current conditions. It is therefore imperative that standing times which occur off the public highway and therefore, under the operator's—or possibly the customer's—control, should be reduced to a minimum.
Because road transport should provide a service to trade and industry it is the operator's duty to meet the customer's requirements as far as possible in such matters as collection and delivery times. Even so, benefits to both parties can be obtained by co-operation in such matters as terminal arrangements. Unfortunately, post-war developments in some instances have tended to make such co-operation more difficult.
The increase in mass production in industry has not only obviously increased the output but also made the timing of collections and deliveries at such factories more critical. Moreover, the amount of warehousing provided has by no means kept in step with output, thereby increasing the need for punctual and regular transport services.
THESE more stringent requirements on the transport operator I have coincided with worsening traffic conditions. Also, because of the shortage and high cost of labour generally, the size and availability of loading staffs provided by the customer to assist the operator's driver tend to diminish.
This situation has undoubtedly become more prevalent in post-war years, thereby adding to the overall time taken to effect delivery. As a result, hauliers' costs are increased with no corresponding addition to the total tonnage handled. Moreover, customers in many instances have imposed restrictions on times at which collections and deliveries may be made.
A:further complication for the transport operator is the effect of the increasing application of sales-drive techniques, with resulting peaks in the amount of goods to be handled. Whilst some of the largest national organizations have tried to mitigate this difficulty, by the establishment of a ..`rategically sited chain R36 of distribution depots, this does not always apply. In some instances hauliers themselves have overcome this difficulty by providing warehouse accommodation of their own.
Several methods exist for reducing the amount of handling involved at a terminal point or distribution centre, and correspondingly reducing the terminal time and cost involved in loading and unloading • vehicles. These include some form of bulk handling where the commodity permits this, or for more varied traffic by some form of palletization. Due to the growth of large organizations some standardization in size of container ultimately delivered to the retailer or customer can be achieved. This, in turn, obviously facilitates the application of the principle of palletization.
Whilst this development is to be encouraged by road transport operators, it has to be admitted that a high proportion of the total traffic handled by hauliers, unfortunately, comes under the heading of miscellaneous, both in size and substance, for which any form of palletization or grouping of loads in the immediate future seems unlikely.
PRECISELY because many of the hauliers' loads are of a miscellaneous nature, the possibility of substantial delay in both loading and unloading is inherent.
This situation is most acute in parcels delivery. It is then common procedure to segregate completely the work of collection and delivery from that of the trunk haul. For this to be done economically it normally presupposes a fairly large organization able to carry the overhead costs of the transhipment depots necessary to facilitate the flow of traffic.
For many hauliers, however, such methods would be too ambitious and a simpler solution to an overall reduction in standing time is required. This can often be obtained by the employment of articulated vehicles.
Though the use of such vehicles is commonplace, paradoxically the full employment of the principle of articulation is much less frequent. In this context, the chief commercial sales manager of a well-known manufacturer of articulated vehicles told me recently how seldom it was for them to sell such outfits with one or more spare trailers. Admittedly, many articulated vehicles, particularly around the 10-ton capacity, provide an economic outfit compared with its rigid counterpart. Also, it often provides a greater platform space, which is of especial benefit when light, bulky loads have to be carried.
When one or more spare trailers are employed, however, a substantial reduction in standing time can also be achieved in addition to the two advantages just mentioned. The amount of saving achieved by way of reduced terminal time must obviously be specific to individual circumstances. Because of high labour costs, any teduction in this expenditure is welcomed by operators. But a far more substantial benefit, to be derived from the use of spare articulated trailers, is the possibility of increased trips per day-or per weekwith a corresponding increase in revenue.
As an indication of the possibilities which the full use of articulation offers, 1 now give the operating costs of an 8-ton articulated vehicle, fitted with oil engine, and with alternatively one, two, or three platform trailers. These operating costs are then applied to a hypothetical day's work.
Assuming that the unladen weight of the tractor unit and one trailer is 3 tons 17 cwt., the annual licence duty will be £50. Allowing for two weeks per annum when the vehicle may be off the road, either because of the driver's holidays or major overhaul, this would then give an equivalent standing cost per week of £1.
Driver's wages are estimated to amount to £10 2s. 5d. a week. This is based on the statutory rates of pay for a driver of this type of vehicle in Grade 1 areas as defined in the Road Haulage Wages Regulations R.H. (70). An addition is also made in respect of National Health insurance• contributions and an allowance for holidays with pay.
Rent and rates in respect of garaging the vehicle are reckoned to cost 12s. 3d. a week. The annual premium for vehicle insurance, allowing for recent increases, is estimated at £60, the equivalent of £1 4s. a week.
The total outlay on the tractor unit and one trailer is around £1,890. With interest charged at a nominal rate of 3 per cent.. this item will amount to a weekly standing cost of £1 2s. 8d. The total for the five items is thus £14 ls. 4d. a Week. When a 44-hour week applies, this would be equivalent to a standing cost per hour of 6s, 4/d. Alternatively, if the average weekly mileage was 600, the standing cost per mile would be 5.63d,
AS regards running costs, it will be assumed that the operator purchases fuel oil in bulk at 3s. 100. a gallon. With a rate of fuel consumption of 13 m.p.g., the fuel cost per mile becomes 3.60d. Lubricants are reckoned at 0.26d. With a set of tyres costing around £225, the tyre cost per mile would be 1.80d., where the mileage life per set was 30,000. Maintenance is assessed at 2.38d. and depreciation at 2.03d. a mile.
This latter figure is obtained by first deducting the cost of the initial set of tyres from the price of the outfit, with an allowance for residual value appropriate to both the tractor unit and trailer. A mileage life of 150.000 for the outfit is assumed.
The total for the five items of running costs is, therefore, 10.07d, which, when added to the corresponding standing cost. gives a total operating cost per mile of 15.70d. Alternatively, the running cost per week when averaging 600 miles would be £25 3s. 6d., giving a total operating cost of£39 4s. 10d. It should be emphasized, incidentally, that the figures so far given relate solely to the cost to the operator of running this vehicle, without any allowance for overhead or establishment costs and profit margin The capital outlay on the purchase of additional trailers would be approximately £700 each. Waiving any additional cost for garaging these extra trailers, the only other increase incurred in standing costs by their acquisition would be a further 8s. 5d. interest charge per trailer. This addition gives a total standing cost per week of £14 9s. 9d. when one spare trailer is used, the equivalent of 6s. 7d. an hour.
Because only one trailer can be hauled by the tractor unit at any one time there should, theoretically, be no increase in overall running costs. This is because the total mileage of the two trailers, or any number of spare trailers, should normally equal the mileage run by the tractor, assuming, of course, that only one tractor is operated.
In practice, however, some'. servicing' of the spare trailers would probably involve additional expenditure, which will nominally be assessed here at I2s. 6d. a week pdr spare trailer. At 600 miles a week this adds 0.25d. a mile, giving a total running cost of 10.32d. when one extra trailer is operated. Similarly, when two extra trailers were used, i.e., three in all. the total standing cost per week would be £14 18s. 2d., or 6s. 9id. an hour. The running cost would be 10.57d. a mile.
To those not acquainted with the full use of articulated vehicles it should be emphasized that Only by the availability of two or more spare trailers with each tractor unit can this be achieved. Admittedly, one extra trailer stationed at one or other of the terminal points can reduce the initial loading time. But, assuming the vehicle is operated on regular trips, delay at the other terminal point could, and probably would, arise. With a spare trailer at each terminal point this 'possibility of delay could be eliminated.
We will now assume that the tractor unit and trailer, with no spare trailers. does a daily journey of 60 miles return. It will further be assumed that two hours are taken to load the vehicle and a further two hours to unload, with an intermediate transit time of three hours, giving a total of seven hours.
From the costs just calculated the standing cost for the return journey would be £2 4s. 9id. (i.e., seven hours at 6s, 41c1.1. Similarly, the running cost would be £2 10s. 41c1. (60 miles at 10.07d.). The total operating cost for the one return trip
would, therefore. be £4 15s. and, assuming a full load was carried On the outward journey only, the cost per ton would be us. lOid.
It will now be assumed that two trailers are employed, and that provision is made for the spare trailer to be loaded during the driver's absence Even so, it would be practical to allow some time for the changeover of trailers and possible attention to paperwork, and this will be nominally assessed at 30 minutes. The other terminal time, however, will remain at two hours, so that the total time for the return trip would be 5+ hours-the same three hours transit time plus the reduced 2i hours combined terminal time. Where the traffic was available, this arrangement would then permit two return trips a day.
WDEN advantage was taken to do this, the cost would then be 11 hours at the slightly increased standing cost per hour of 6s. 7d. (£3 12s. 5(1.), plus 120 miles at 10.32d. (£5 3s. 2d.). This gives a total of £8 15s. 7d, Now, however, 16 tons will be carried during the day with a resulting cost per ton of 10s. I lid.
When three trailers in all are used it will still be assumed that only two terminal points are involved, and that facilities are available at both these points for the spare trailers to be loaded or unloaded, whilst the driver is out on the road with the third trailer. Allouing similar times, as in the second example, the total time per return trip will now he reduced to four hours, or eight hours when twO trips a day are made.
On this basis, and applying the operating costs appropriate to the use of a tractor and three trailers in all, the standing costs per day would he £2 15s. 2d. (eight hours at 6s. 91-d.) and the running cost £5 5s. 7d. (120 miles at 10.57d.). The total is thus £8 0;, 9d. a day, the equivalent of 10s. Nd. a ton, S.B.