RURAL TRUCKING MATTERS
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PUT YOUR OWN BUSINESS FIRST
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he Australian Livestock and Rural Transporters Association (ALRTA) is comprised of six mature state associations, together representing around 700 individual transport businesses. For most of the past 35 plus years we have focussed on the bigger picture. We have driven our own agenda. We have put forward ideas and strategies to influence decision makers. We have been on the front foot, always striving to protect and enhance your operating environment so that it remains safe, efficient and financially viable. But these are not normal times. Over the past two years, we have lurched from crisis to crisis. The shocks to our industry have been many and varied. It hasn’t been government regulation, media, research or community expectations that have thrown up disruptions, it’s been drought, fires, floods, war and disease, perhaps the most enduring and difficult of all challenges that have affected human-kind over the millennia. From the perspective of a national industry association, there is not a lot we can do about the weather, species jumping viruses or centuries old territorial disputes. So when these shocks suddenly occur, we need to be nimble and quickly switch modes from proactive to reactive. Other longer-term priorities just have to go on hold. During the storm, we batten down the hatches and man the pumps to keep the ship afloat until the inclement weather has passed. Throughout these challenges, ALRTA and our six State Member Associations have represented the interests of grassroots members at the highest levels. We attended the National Drought Summit. We put forward views at the National Bushfire Recovery Forum. We were involved in drafting the National Freight Movement Code in response to the COVID pandemic. And we have kept members up-to-date about flood disruptions including available support and financial assistance. Some of our most significant achievements have been to delay significant heavy vehicle charging increases by two
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“OPERATING A TRANSPORT BUSINESS IS DIFFICULT AT THE BEST OF TIMES. IT’S A HIGH CAPITAL, HIGH COST, LOW MARGIN GAME AND WE OPERATE IN A COMPETITIVE ENVIRONMENT.” years, establish national protocols for the safe re-opening of food, showers, rest and toilet amenities, and to influence the creation of a multi-year loss carry back allowance for all Australian businesses. Through our membership of the Australian Trucking Association we have also tackled the adblue shortage, maintained generous accelerated depreciation allowances, and gained ‘in principle’ Ministerial approval for a move to competency-based licensing and a new driver apprenticeship to help address our longer-term labour shortages. Yet, as you know, the real impacts of these external shocks are felt at the coalface, in your business. Thanks to ongoing disruptions to global supply chains and domestic labour shortages, the Australian economic climate is rapidly changing. Inflation is back, and it’s not happy! Like all of ALRTA’s elected Councillors, ALRTA National President, Scott McDonald, runs his own freight business. McDonald Brothers Transport purchased their first truck in 2000 and have since grown it to a fleet of 12 today. The business operates tippers, crates, flattops and dropdeck trailers, servicing all types of rural transport tasks. Scott recently offered advice for fellow carriers about surviving economic shocks in uncertain times that is worth repeating here. “Operating a transport business is difficult at the best of times. It’s a high capital, high cost, low margin game and we operate in a competitive environment,” said President McDonald. “While recent headlines are reporting a steep and sustained increase in the price of diesel and adblue, most other cost inputs are being affected by inflation with the price of tyres, parts, vehicles and labour also
increasing significantly in recent months. “Most transport businesses cannot afford to absorb these increases. Now is the time to put some effort into really understanding the full cost of providing your freight service. Calculating the impact of increased fuel prices is the easy part. However, it’s important to also factor in the current cost of replacing tyres and parts as well as performing essential maintenance. And at some point, you are going to need to replace the truck and trailers, so you need to make sure your margins can cover that too. “Understanding these rising costs is vital in building a case to adjust your freight rates. Customers are for more understanding when you can explain why your rates must go up. It’s of no help to your business to work harder for the same rate you’ll just go broke faster. We should approach this important issue as an industry. Rate increases are easier to achieve when everyone understands the true cost of our service.” So, while the ALRTA and our State Member Associations are fighting the good fight on your behalf at the very top of the decision-making ladder, don’t forget to take the time to protect yourself at the individual business level. No-one knows your business better than you. And with the price of most agricultural commodities at (or near) all-time highs, now is the time to make sure your freight rates are sustainable.
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POWERTORQUE May/June 2022
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