According to the Australian Industry Standards , the transport and logistics industry has an annual revenue of nearly $100 billion pa and this accounts for around 8.6% of Australia’s GDP. The industry supports approximately 185,000 businesses from small, medium to large enterprises and employs 1.2 million people with an average wage of approximately $67,000 and employment growth projected @ 3.3%p.a. to 2023.
Facts like these make it easy to agree with the moniker, “Without truck drivers, Australia stops.”
However, freight transport requirements in Australia are expected to almost double by 2023. This means in less than 4 years, the transport industry will need to transform to meet this demand as well as meet ever tightening standards and requirements to reduce carbon emissions.
So how can we as an industry meet this demand?
The logistics industry is transforming from a delivery business into a customer experience business, especially where last mile services are quickly being rebuilt around the needs of the customer.
Consumers will continue to demand greater control over the logistics process and actively intervene in the delivery of their goods. Locally focused specialists may rise from increased urbanisation to negotiate the contested last mile in specific areas. Transport and logistics operators may ultimately share resources, including warehouses and networks with competitors in “co-opetition” to achieve greater flexibility and cost efficiencies.
This makes the support of transport industry associations like Natroad and ALRTA more important than ever as they help transport operators negotiate the regulation maze, enable new partnerships, lobby on their behalf and work with service providers to advance the industry.
Sustaining the important discussions led by these transport associations in driving diversity to address the skills shortage and attract high calibre talent is a priority and we explored this in an earlier post. See our earlier article, Fuelling Diversity
Another essential factor in a fast-paced and on-demand future will be the reliability of delivery vehicles. Keeping vehicles on the road (for longer) will increasingly require highly disciplined fleet management practices as well as comprehensive and affordable en-route or mobile services to quickly assist, and if required, help co-ordinate the implementation of alternative capacity.
It will also become more important to understand the value and benefits of consumables such as tyres, fuels and lubricants and how they affect safety and performance. For example, how more advanced lubricants that extend oil drain intervals and engine life can help increase the efficiency of transport fleets.
A panel on a PwC report anticipate by 2030 the cost of carbon will be allocated to the customer receiving the goods. This will require logistics companies to track, document and disclose their CO2 emissions, and those with the best ‘sustainability ratings’ will become more competitive. One area for exploration may be to ensure your fuel provider offers assured supply of quality standard approved fuel that delivers reduced Particulate Matter (PM2.5) and Hydrocarbon emissions (HC).
Oil price volatility will continue to be a cause for concern. Alternative energy may take up some of the slack, but many believe a major energy turnaround for logistics is unlikely before 2030. However, it remains to be seen how new regulation and ambitious targets will underpin the drive for significant change and how rapidly advances can be achieved. The move to fuel alternatives may well be hampered by a transport industry that’s too busy to look up and see what fuel innovations make sense.
What is clear is that the whole industry: the transport operators, industry associations and all the supporting functions will need to pull closer together to deliver the growth the projected demand calls for, understand what is required to grow and find the solutions it needs.
Helping ease fatigue into the future.
A National Transport Commission Report revealed a quarter of drivers reported becoming fatigued on at least half of their trips, increasing to 60% of drivers who experienced fatigue at least occasionally. A third (36%) of drivers reported ‘nodding off for a moment’ on at least some occasion over 12 months, including one in eight (12%) at least sometimes.
Keeping drivers and our roads safe is an integral value for Caltex Australia. For many of us, the road is our workplace. We are working to ensure our facilities are designed to improve the welfare of truck drivers by providing essential services including showers, restaurants, coffee, wholesome food and drink, clean toilets as well as lounges.
You can discover more about how Caltex is helping fuel business growth for the transport industry at the Truck Show 2019. Visit Caltex at the FOYER – 011 stand for your chance to win 1,000,000 Qantas Points.
Caltex @ Truck Show 2019 – A stop worth making.
[i] Australian Industry Standards Skills Forecast 2018, Transport and Logistics.
[ii] PriceWaterhouseCoopers - Transportation and Logistics 2030
[iii] 2007 NTC Australia survey on Driver Fatigue: A National Study of Heavy Vehicle Drivers