The Container Transport Alliance Australia (CTAA) says freight transport prices are increasing due to the Russia-Ukraine conflict and sanctions on Russian energy exports, which are causing fuel prices to rise.
According to the Australian Institute of Petroleum (AIP), between February 13 and March 13 this year, the average Terminal Gate Price (TGP – wholesale pricing) of diesel has risen nationwide from 166.4 cents per litre (cpl) to 195.1 cpl, which is an increase of 28.7 cpl or 17.3 per cent.
The CTAA notes retail pump diesel prices across Australia on average rose in the same period from 175.6 cpl to 202.4 cpl, which is an increase of 26.8 cpl or 15.26 per cent.
It says the highest retail diesel prices recorded across the country up to the week ending March 13 were 218.1 cpl.
The Alliance adds most freight transport operators have levied a fuel surcharge on their customers to account for the fluctuation in fuel prices for many years. It notes they have done this rather than adjust their freight base rate pricing to remain viable.
It also says most city-based container transport operators’ fuel costs account for between 17 per cent to 22 per cent of their overall operating costs of heavy vehicles, and a five cents cpl increase in diesel prices results in a one per cent increase in an operator’s fuel levy.
It notes fuel surcharges would rise by more than five per cent if the above highlighted national average diesel price increases are considered, and some transport operators are checking their fuel surcharges often as the cost of diesel continues to rise weekly.
The CTAA says the fuel surcharge levy set by transport operators is a matter between them and their customers and is dependent on base freight rates. It notes if the fuel surcharge rate was 16 per cent prior to the recent shocks in diesel prices, then it is not unrealistic for the fuel surcharge to rise between 21 per cent to 22 per cent.
For more information on the Container Transport Alliance Australia, click here.