Reports meandering their way to Spy from Tasmania are that many small fleet operators and owner-drivers are doing it tough, with some facing financial ruin.
“I have never seen it such a struggle to get work here,” one long time veteran told me.
I asked why and he said there were a number of reasons including high interest rates, fuel prices and some counterparts accepting super low freight rates.
To steal a well known comment from politician Pauline Hanson I asked, “Please explain”.
“The other day a regular client wanted me to deliver from Hobart to Strahan on the west coast and when he received my quote he advised that somebody else had offered him a rate which was $900 cheaper,” the truckie said.
“So he accepted it and I warned him that it may not be a good decision. It costs me $1130 for fuel for that trip.”
A week later the client phoned my informant asking him if he’d make a similar delivery, advising the low-rate-man had not worked out.
“I told him it would be an extra $200 for the trip and he had to take it,” he said.
Another well known Apple Isle operator said some people who thought they would make a quick buck purchased a truck.
“Then they find out that it is hard to keep up the monthly instalments when you are only working seven months a year instead of 12,” he said.
Fuel costs were also an obstacle with the bowser price of diesel around $2.10 a litre when we spoke.
Some ease that financial burden a little by purchasing their fuel at high volume outlets like one at Campbelltown on the Midlands Highway, or another in the Huon Valley.
“I can save 2.6 cents a litre there which adds up. The fuel at Campbelltown comes by road from Hobart where it is dearer,” he said.
Spy has a similar query regarding fuel costs between the Queensland outback and the east coast.
There is a big fuel depot at Julia Creek which is along the Flinders Highway.
It is located 750km from Townsville and you can often see fuel trucks from Julia Creek travelling to the coast and filling up tanks at various outlets.
You would expect that the fuel would be similar in price out west when compared to Townsville.
Not so. Fuel in North Queensland’s biggest city is around 30 cents per litre cheaper.
So what’s the explanation? That I do not know.