Over to you WESTERN ROADS FEDERATION by Cam Dumesny, CEO
ARE THE WHEELS FALLING OFF?
T
he Western Australian Transport and Logistics industry have been the unsung heroes of this pandemic. Despite bushfires, floods, lockdowns, chaotic border rules – WA businesses, industry and our community have been supplied. Public Recognition – well that’s in absolutely short supply. But as I write this, it has become patently clear that the wheels are now beginning to fall off, as a combination of factors all begin to bite.
Increasing Operating Costs for Transport So many members have said, “Our revenues have never been higher, but we are making nearly no profit because costs are blowing out.” Given the shortage of skilled labour (including Drivers) companies are now paying far more to attract and retain people. But other operating costs have risen too, such as: • Tyres – reported increases of 15 to 20% • Fuel – up 30% in the last year (noting not all have fuel levy’s in their contracts) 12
WATM • December 2021
• Spare Parts- combination of shortages and price rises • Service Cost – increases due to shortage of skilled labour • Non-Productive Costs – combinations of driver shortages and spare parts delays have meant some trucks parked up – meaning no money coming in – but payments still going out.
Freight Demand Up and So Are Prices Whilst some are in locked in contracts, others have been able to escalate rates to reflect the new market conditions. Its not uncommon, to hear of transport companies increasing freight rates in some segments by more than 20%. But even then, some of those who have managed to secure such increases say that costs are increasing even faster.
to or leave WA. Commendably, companies both in the East and here in WA are now actively seeking to protect their driver’s welfare by avoiding taking on work that requires them to leave WA or come to WA. With already over-stretched demand for road transport across the paddock, the loss of capacity due to withdrawal of services by some operators is going to hurt WA. In-conjunction with Tim Dawson from the TWU we have secured a meeting with the Deputy Chief Health Officer, Police and the Department to come up with better solutions for our cross-border drivers. I pay credit to Tim for securing that meeting. We need solutions that give confidence to the Health Department BUT also provide greater respect and freedoms to our drivers. Drivers have not only earnt that right, they deserve it.
Vaccinated drivers Companies Refusing Cross Border Work The draconian conditions imposed on truck drivers coming from the hard border closed areas of Vic and NSW have led to increasing numbers refusing to come
At the time of writing this, the Government deadline for vaccination of drivers is approaching. A number of drivers have chosen not to get vaccinated and as such companies are reporting a loss of drivers. Estimates on the actual numbers are
