The transport industry in New Zealand has weathered its fair share of challenges over the past few years. In a post-election environment with potential new transport policies on the horizon, alongside the rising e-commerce demands, a retiring workforce, and spiralling costs, the need for proactive future-proofing is more pressing than ever.
Balance costs
Though New Zealand is technically out of recession, the transport sector is yet to breathe easy. Costs have always been a concern for transport businesses, and they continue to be a pressing issue. Rising fuel prices, maintenance expenses, and the recent news of the Port of Auckland signalling a more than 50% price increase to its vehicle booking system starting next year, have pushed costs higher. These increases may eventually be passed on to cargo importers and exporters, but in the interim, transport operators must shoulder these costs.
To navigate these turbulent waters, it is important for transport businesses to engage in transparent communication with customers. By alerting them to the impending price hikes and explaining the reasons behind these increases, businesses can avoid any sudden shocks to clients. A recent telematics survey we completed showed that 21% of you are already having to pass on fuel expenses to customers, but 24% are already using driver behaviour programs to combat rising costs.
Whether you’re in charge of a fleet of three vehicles or overseeing a more extensive operation with hundreds of vehicles and assets, adopting a GPS fleet tracking system can be a game-changer for managing fuel expenses. Many transport companies have found that embracing such systems not only boosts efficiency but also helps trim overtime costs, which often lead to hefty payroll expenses.
A well-trained, diverse workforce
Trucking is experiencing a generational shift. Older drivers are retiring faster than we can replace them, meaning now is the time to be rolling out innovative strategies to attract a younger, more diverse workforce. It’s essential to acknowledge that people from all backgrounds and ages have similar demands: a better work-life balance, safer working conditions, and financial stability. Initiatives to attract and retain staff encompass various approaches, including tertiary qualification pathways, promotional events, diversity programs, and improved working conditions.
The recent record net migration gain of 96,200 people in New Zealand presents a unique opportunity for the trucking industry to tap into a wider pool of talent. To create a more inclusive workforce, consider adopting practices and resources like Transporting New Zealand’s Diversity Toolbox. Supported by Teletrac Navman New Zealand, this toolkit provides free downloadable tools to foster diversity and inclusion in the workplace.
Safety and compliance
Safety and compliance are non-negotiable in the transport industry. New initiatives like the Commercial Vehicle Safety Centres, equipped with high-speed weigh-in-motion technology and automatic number plate recognition systems, are being deployed to enhance compliance checks. With plans to have 12 of these centres operating around the country, it’s clear that ensuring road safety and compliance is a top priority. After all, the vehicle is your driver’s workplace, and ensuring their safety all fits in to Health, Safety at Work Act (HSWA).
When considering compliance, proactive management of Road User Charges (RUC) is crucial to avoid any future issues. Technology can play a significant role, streamlining RUC management and compliance processes with the help of axle or in-cab distance recorders and dedicated RUC management systems. Don’t forget, there are vehicle monitoring systems and AI-powered cameras that can be used to help identify unsafe driving habits, reducing the risk of collisions, incidents, and fines.
Sustainability practices
Sustainability has transitioned from a ‘nice to have’ to an absolute necessity for fleet-based businesses. The transport industry is no exception, especially when the industry accounts for approximately 40% of New Zealand’s carbon emissions. To reduce their carbon footprint, companies are exploring various avenues, such as electric vehicles and low-emission trucks, as well as technology to assist in efficiency gains to reduce fuel used across the board.
For instance, HW Richardson, one of the country’s largest trucking companies, has embraced hydrogen gas technology alongside diesel to reduce emissions, including fleet management technologies. As contracts for transport works are increasingly focusing on sustainability as a major factor for the selection process, green practices not only benefit the environment but also enhance a company’s reputation and attract eco-conscious customers into the future.
Embrace advanced technology
In today’s ever-evolving transport industry, technology is frequently the catalyst for transformation. Leveraging advanced technology like telematics is crucial to maintain a competitive edge in an era where traditional methods fall short. Data-driven insights from vast datasets empower fleet managers to make informed decisions that touch every aspect of their operations. For example, they can schedule maintenance more efficiently, ensuring that vehicles are in peak condition. Telematics can also aid in route optimisation, enhancing fuel management for businesses.
Technology also offers new ways to improve safety. Driver monitoring systems and AI-powered cameras are at the forefront of this effort. These technologies can identify unsafe driving habits such as speeding, harsh braking, and sharp turns. Additionally, eRUC solutions can automate and streamline the process of tracking and paying RUCs, as well as claiming off-road refunds. This not only reduces administrative burden but also ensures that operations remain in good standing with regulatory requirements.
Now is the time to get ready
Kiwis pride themselves on their innovation and adaptability – traits that are invaluable in a competitive industry like trucking. Businesses today must negotiate an increasingly complex environment, filled with challenges ranging from regulatory compliance to financial pressures and workforce sustainability. There’s no better time to take a strategic pause, assess the landscape, and implement measures to future-proof your operations.
*Megan Duncan is director of global marketing operations at Teletrac Navman.
