Rising transport costs

The Victorian Transport Association has released the December 2011 Cost Index of +3.18%.

“Our cost analysis shows that component transport costs continued to increase, some more than others,” said VTA Chief Executive, Philip Lovel AM.

“Obviously, labour is a key increase, adding 1.75 per cent to the index. Rising labour costs will continue to put pressure on overall transport costs in the future.”

Interest rates and vehicle capital costs dropped slightly. Fuel increases continued to increase and are now at pre GFC prices. This was an increase of 16.73% over the 12 month period.

Mr Lovel continued, “The industry is being hit by the high costs of compliance and these are hard to recover. They are real and cutting our margins. “Margins are quickly disappearing with National Registration Charges increasing and the Diesel Fuel Credit reducing every 12 months. The diesel fuel credit started at 18.51cpl and is now down to 15.043 cpl – a drop of 3.47cpl or 18.73% over the past 4 years.

“Our customers must accept cost increases are passed on or they will find more transport companies disappearing or reducing services.”

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