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Where's the money?

The issue of rates per mile for hauliers raised its head again when a traction-only operator lost work to a bigger logistic business.

Given the opportunity to match the new, lower rates by the company requiring third-party traction, the incumbent haulier politely declined.

It seems in every sector traction-only hauliers are hammered by major logistic operation who have diversity on their side. Warehousing and storage gives a staggering economy of scale with which a company can deliver transport at a greatly reduced price, or in some cases at no cost at all.

To businesses who want their products moved traction-only hauliers become too expensive. Their only option can be to get sub-contracted work from the big, multi-faceted logistic businesses at rates varying between 50p at worse to £1 at best.

As an operator, says John Phillips, author of Motor Transport's Cost Tables [MT, 7 May 2009], for 44t over 120,000 miles a year you should be charging £1.47 a mile.

Is anyone getting that rate today?

The news on Owner and Fleet Operators Forum on TruckNetUK suggests otherwise...

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This page contains a single entry from the blog posted on July 7, 2009 10:24 AM.

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