Data provided by Ia Ara Aotearoa Transporting New Zealand to help trucking operators understand their business costs, has shown unprecedented transport cost increases this quarter.
Produced for Transporting New Zealand members, the Grant Thornton Cost Index report shows that for the quarter ending March 2022 the price of diesel fuel increased over 14 percent.
“What is even more concerning is that 14 percent change is forecast to be more than 24 percent over the next quarter,” says Transporting New Zealand CEO, Nick Leggett.
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 percent.
“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.”
Transporting New Zealand 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 percent 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 percent and over 5 percent respectively in the last year.
“This is how the increasing cost of transport is baked into all the goods and services we purchase,” says Leggett. “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,” says Leggett. “Cost increases must be fairly passed on because indications are that this period of high inflation may be with us for some time.”
Transport operators can be in to win a Prezzy Card by completing the survey at: https://www.surveymonkey.com/r/9CXDB5K.
The survey will close on Tuesday, 5 July, at 5pm.
For full access to the Transporting New Zealand/Grant Thornton Cost Index, please email: info@transporting.nz or call (04) 472 3877.
