Trucking operators are facing “unprecedented” transport cost increases this quarter, according to data provided by road freight body Transporting NZ.
Produced for Transporting NZ members, the Grant Thornton Cost Index is used to help truckies understand their business costs.
The report shows the price of diesel fuel increased over 14% for the quarter ending March 2022.
When the average fuel price for the quarter ending March 2022 is compared with the same quarter last year, that represents an annual increase of 55%.
“What is even more concerning is that 14% change is forecast to be more than 24% over the next quarter,” Transporting NZ chief executive Nick Leggett says.
“This shouldn’t be a surprise to anyone, but it’s good to take an evidence-based approach to understanding how the proportions of costs across the categories have changed for operators,” he says.
Transporting NZ has launched an online survey for all industry operators across the country to better understand the cost pressures they are facing in real time.
“While previously the Index has estimated that fuel might be 15-20% of a transport operator’s costs, it’s clear that is now far higher.
“We want to gauge where that might sit for different sectors of the transport industry in different parts of the country. Hence the need for a survey.”
The cost indices for tyres and wages have also increased over 12% and over 5% respectively in the last year.
“This is how the increasing cost of transport is baked into all the goods and services we purchase,” Leggett says.
“Sadly, these increases are the reality of the current period of high inflation and transport businesses, who already operate in a low-margin environment, have no choice but to pass that on to their customers.
“Operators must know their costs and where the increases are coming from so they can accurately charge for their services.
“Our message to the industry continues to be that it is not the time to try to internalise these extra expenses in order to provide their customers with a free lunch.
“Cost increases must be fairly passed on because indications are that this period of high inflation may be with us for some time,” Leggett says.
*Transport operators can be in to win a Prezzy Card by completing the survey clicking here. Email info@transporting.nz or call (04) 472 3877 for full access to the Transporting NZ/Grant Thornton Cost Index.
