Diesel Cost Surge of 32.5% Puts Road Freight Sector under Immense Pressure
For the road freight industry - the daily basic diesel cost rose by 32,5% today.
That's an increase of 32,5% of a basic cost input that is between 35% and 55% - depending on the vehicle type used, routes used, congestion, working conditions and fuel consumption.
Whilst not being raised by R10 per litre - the R3 that is being "decreased in the fuel levy" definitely helps - but it will come back in some form or another.
Road freight operators are under immense pressure. There are no guarantees that clients will pay the new transport rates - and transporters are in the business of making money, not in the business of making a loss.
Access to cash reserves to pay for high fuel costs is every transporter's worry - where to find the funding for day-to-day operations or guarantees with fuel suppliers.
Consumers will start feeling the pinch of high fuel prices within a couple of weeks - and fuller impact will filter through towards the end of April.
The spectre of further fuel increases remains a reality and threat to all operators.
By Gavin Kelly, CEO of the Road Freight Association
Gavin Kelly, CEO of the Road Freight Association
Issued by
Name: CVLC Communication
Contact: Catherine Larkin APR CMILT
Cell phone: 083 300 0331
Contact: Catherine Larkin
Email:
Website: www.rfa.co.za
About The Road Freight Association
The Road Freight Association was established in 1975 to support its Members who are, in the main, road freight operators. It is a lobbying and negotiating body which influences the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, cross-border transport, education, health, the fuel price, law enforcement, labour relations and many other issues related to road freight transport.
Member companies include small and medium-sized trucking companies, including many family-owned businesses, owner operators, as well as most of the largest trucking companies in South Africa. Members come from all sectors of the trucking industry.
Private and public operators are Members of the RFA. Membership also includes a significant number of affiliates and associates – those companies providing goods and services to the trucking industry.
Team RFA (made up of support staff and experts) is committed to serving you. The team brings with it a high degree of professional experience, knowledge and dedication – which greatly contributes to the effectiveness, relevance and standing of the RFA.
As the voice of the trucking industry in South Africa, the RFA is your voice. It is important that you avail yourself of that opportunity to be heard.
