Transport and Distribution Solutions

TransEco Road Freight Cost Outlook Service

Gauging Future Cost Structures of the Australian Road Freight Industry

The challenges for road freight

The road freight transport industry in Australia will experience significant challenges in the future that will affect both shippers and transport companies.

Are these some of your challenges as a shipper?

Contract negotiations with capable and knowledgeable providers of transport services
Budgeting and planning road transport spend
Transport companies that can deliver the service they talk about
Chain of Responsibility liability.

Are these some of your challenges as a transport company?

Profitable contracts with clients
Truck utilisation
Contract negotiations with staff

Environmental legislation
Operating Constraints
Poor linkages between clients and their customers

Overcoming these challenges requires knowledge and information about the road freight industry – this is what TransEco provides for companies and government throughout Australia.

Addressing your challenges

The Road Freight Cost Indices from TransEco has become the industry standard and over 800 buyers and sellers of road freight transport services, along with government policy developers have subscribed to this service since its inception in 1994-95.

In response to identified market requirements, the Road Freight Cost Outlook is the additional service from TransEco that provides a comprehensive outlook analysis of road freight cost input segments.

TransEco is the only independent firm focused on providing economic analysis about freight transport in Australia. We are committed to facilitate the planning of your business strategy to provide cost effective solutions. The Road Freight Cost Outlook from TransEco provides crucial knowledge for your business management by analysing and quantifying the impact of changes in the road freight market and so enhances your business planning decisions, distribution performance and business processes.

The TransEco Road Freight Cost Outlook Service (TRFCOS)

The Road Freight Cost Outlook from TransEco provides an in‐depth analysis and forecast for each cost input segment extending over the next 5 years. Forecasts for State and Territory developments and performance are provided. There is also an analysis of the impact on Road Freight Transport in Australia from the Evolving Carbon Economy.

Specifically the Road Freight Cost Outlook will provide five year forecasts on movements in:

Driver Costs
Fuel Costs
Tyre Costs
Vehicle Maintenance Costs
Vehicle Capital Costs

Vehicle Insurance Costs
Vehicle Registration Costs
Impact of the evolving Carbon Economy on the Road Freight Industry In Australia
Toll Charges
Client Specified Factors

The objective of this service from TransEco is to provide you and your colleagues with the required knowledge to make informed decisions that will bring about sustainable and profitable outcomes.

TransEco seeks to collaborate with its clients to keep the analysis current and relevant.

Contents of the Road Freight Cost Outlook

Driver

Forecast are based on trends in wages, enterprise bargaining agreements, supply and demand of drivers over five years. Compliance costs of fatigue management are included in the analysis. Comprehensive forecast by State and Territory are included along with National averages.

Fuel

The volatility of this cost segment requires close attention of future movements in fuel costs. Considerable resources have been allocated to develop econometric models that explain the historical trend and likely forward movements in crude oil prices and subsequent diesel prices in Australia.

Tyres

Changes in the import prices of tyres, the impact of raw material costs as input to manufacturing costs, overall manufacturing costs in Australia and internationally and other cost factors are examined to develop forecast models for tyres. The impact of imported second hand tyres and locally recapped tyres is also explored.

Vehicle Maintenance

Labour costs and parts are the major components that constitute vehicle maintenance costs. Labour costs are driven by demand for labour and its availability, while prices for imported vehicle parts are driven by exchange rates, freight costs and changing trade regulatory frameworks such as Free Trade Agreements (FTA). Compliance costs associated with emission controls are also identified.

Vehicle Capital

These costs are mainly determined by the movement of prices in new and used commercial vehicle markets in Australia and the movement in loan interest rates. A weighted basket of vehicle types is utilised to develop the forecasts.

Vehicle Insurance

Key factors determining the price of insurance include the inherent market risk at any particular point of time; competition within the insurance market and the effects of self‐insurance. Changes in regulatory compliance requirements by States and Territories; for example, changes in compulsory insurances regimes have distorted national averages.

Vehicle Registration

Significant changes have taken place to registration costs in recent times; further studies are being conducted by Federal Authorities concerning future road usage pricing, especially for heavy vehicles. An analysis of these initiatives and the likely timing of changes are taken into account in the analysis.

Carbon Economy

Australia has introduced carbon pricing as the economy moves towards sustainable economic development. What have been the developments and what challenges lie ahead for the road freight industry? These are some of the questions that are answered as the evolving carbon economy in Australia is analysed.

Toll Charges

Extensive congested toll roads have led to eroding benefits.

Client Specified Factors

TransEco will provide analysis on other factors as specified by individual members. Nominal additional fees may be applicable for this service.

Publication Schedule

The Road Freight Cost Outlook is published quarterly.

Your Investment

The challenges are not getting any easier. It is time to obtain the facts you need to make the best decisions for the future. TransEco is the firm that becomes your in-house analyst. You are invited to subscribe to the Road Freight Cost Outlook Service. An introductory initial subscription is $5500.00 (Plus GST), which entitles you to four editions of the Outlook Report OR $3795.00 (Plus GST) which entitles you to two selected editions of the Outlook Report.

TransEco Road Freight Cost Outlook Service

Order Form

An introductory initial subscription is $5500.00 (Plus GST), which entitles you to four editions of the Outlook Report OR $3795.00 (Plus GST) which entitles you to two selected editions of the Outlook Report.