Cost pressures continue to bite for the road freight industry, with repairs and maintenance, depreciation and interest, insurance, and wages all rising over the March quarter, according to Transporting New Zealand’s latest cost index.
The Transport Cost Index, prepared for the road freight body by Grant Thornton, shows road freight costs have risen by 6.03% over the past year to March 2024, above CPI at 4.02%.
Transporting NZ interim chief executive Dom Kalasih says cost increases, combined with reduced demand (demonstrated by a month-on-month fall of 2.3% in the ANZ Truckometer Heavy Transport Index in May), will put pressure on many trucking firms.
“The March quarter data really highlights the importance of road freight operators keeping a close eye on their freight rates and margins, and communicating with customers about the realities of the cost pressures they’re facing.
“The average cost of both insurance and repairs and maintenance has increased by more than two percent in the March quarter alone. Fortunately this was offset somewhat by a drop in fuel prices in the same period.”
“We encourage our members to check out the Transport Cost Index, our Transport Business Cost Model that can help calculate sustainable hourly and per-kilometre freight rates, and our competitive commercial discounts on fuel and business services.”
The Transport Cost Index is available for purchase on the Transporting NZ website. The Index is a quarterly report on the cost movements of the typical components that contribute to transport rates.
