With talk on the world stage about economic instability, the potential consequences for our country, and in turn our industry, is uncertain. It is difficult to predict the effect of global economic shifts on pricing and costs locally. The reality is trucking businesses in Australia have had to deal with a similar level of uncertainty for many years. The events of 2025 so far have simply increased volatility.
One of the keys to success in any business is knowing exactly what your costs are and working to keep them under control. In a ‘low return on capital’ industry like trucking, this is essential. Something as little as a few cents on the price of a litre of diesel can make a major difference to profit margins.
The control of costs is often out of the trucking operators’ hands, and the level of uncertainty is always high. Those supplying transport services have little control over the costs of handling any load. Variations in fuel prices, road congestion, road charges and other costs will always increase stress and constrict the profit margin possible.
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As the cost of doing business continues to climb, trucking’s major customers continue to push for lower freight rates. They are using their economic power against an industry, 98 per cent of which is made up of small businesses, with average profit margins at just two per cent.
NatRoad members are telling us the road freight industry is under significant cost pressure and can’t afford even more uncertainty.
NatRoad is calling on the Australian government and the states and territories to aid our vital industry, by helping to reduce the level of economic uncertainty for trucking. There are several measures within their responsibilities which would reduce costs and volatility, helping to stabilise the industry.
We have proposed the slashing of 90 per cent of heavy vehicle access permits by 2028. A reduction in minor and non-safety related fines in the Heavy Vehicle National Law (HVNL) would also reduce costs. A minor clerical error should not cost a week’s worth of wages for our hard-working drivers.
Other cost measures that could help the industry keep costs under control include lowering heavy vehicle tolls and introducing the independent regulation of toll pricing. There is also a need for regulated landside port charges for transport operators. Controlling the rise in Road User Charges (RUC) and protecting Fuel Tax Credits would also go a long way to ensuring road freight transport remains viable.
Measures to improve the road access process will inevitably lead to higher productivity and reduced red tape for operators. A transparent and effective access system with fewer permits needed would see fewer truck trips and therefore lower costs, improved safety and reduced emissions.
A good example of government working with industry to improve access is the Victorian government’s recent commitment to end structural bridge assessment fees from January 1, 2026. The change in policy could save the industry half a million dollars each year and follows extensive industry engagement with the National Road Transport Association (NatRoad), Victorian Transport Association (VTA) and Heavy Vehicle Industry Australia (HVIA).
In this environment, many trucking operators, who are vital to the functioning of the economy, are struggling to control the costs associated with keeping freight on the move.
What we need in these uncertain times is stability. We need help from all levels of government to enable the trucking industry to plan ahead and provide some certainty about ongoing costs while growing fleets to meet increased demand for freight services and providing access to newer more productive equipment to keep costs under control.
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