Truckies feel pressure of petrol prices

By Niamh Champion
Updated November 5 2012 - 5:50pm, first published July 10 2008 - 11:26am
Alan Ross of Ross Transport says he knows of established businesses in the industry selling up at a loss as the diesel price crisis bites further. Picture: GREG TOTMAN
Alan Ross of Ross Transport says he knows of established businesses in the industry selling up at a loss as the diesel price crisis bites further. Picture: GREG TOTMAN

The trucking industry has hit crisis point and many businesses face going under, the Australian Trucking Association warned yesterday.With petrol prices continuing to rocket, and the cost of diesel nearing $2 per litre, Australian Trucking Association (ATA) spokesman Bill McKinley said the road transport industry, including operators in the Illawarra, was feeling the pinch."No doubt the rapid increase in the fuel prices have created a crisis," he said."The price of diesel has gone up by 50 cents per litre since last October."Mr McKinley said diesel was a major expense for trucking companies and many businesses were absorbing the 50 cent increase.Port Kembla truck driver and Ross Transport owner Alan Ross said increasing fuel costs were making matters difficult."It's getting to be a real struggle - an enormous struggle," Mr Ross said."It's sad for people who've been in the industry 30 years who can't keep up and are selling up at a loss."Mr Ross said some clients refused to absorb the growing costs of fuel and he was not surprised other businesses were also suffering."Most of our big customers are not absorbing the growing costs and so we are wearing them," he said."Transport costs have increased enormously and we have to pass the costs on." Cordeaux Heights truck driver and Kotevski Transport owner Tony Kotevski said the Rudd Government should look at long-term solutions to the fuel crisis. "Fuel prices are the single most important task for the Government," he said. "It affects everyone and we are at the mercy of those selling the fuel." The ATA said transportation businesses may have to increase charges by 20 per cent just to make up the lost ground from months of increasing fuel prices. "It is essential that every trucking company puts a system in place to pass on the increases in the cost of fuel," Mr McKinley said. "They need to ensure they go over the books each week and take a good look at their costs."The ATA recommends trucking businesses increase their freight rates and turn down jobs that do not pay enough."Many worry if they turn away customers they won't have a business, but that is not so," Mr McKinley said."Companies that follow these rules will survive."Additional transportation fees are set to hit families hard as grocery prices continue to rise to cover transport costs.Estimates were that emissions trading, set to begin in 2010, would add another 10 cents a litre to the cost of diesel and consumers would have to foot the bill again, Mr McKinley said."This means consumers paying more for groceries and forcing people to make decisions about what to buy," he said.

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