Get Ready For Freight Cost Increases
The sharpest increases in fuel prices since the 2008 Global Financial Crisis will inevitably lead to increased freight cost increases says National Road Carriers (NRC) Association Chief Operating Officer James Smith.
Smith says fuel prices went up by 18 cents a litre over the last week, a 59% increase over the same week last year, and AdBlue, an exhaust emission additive, has increased in price by 40% since January.
“On top of these fuel and additive price-hikes, the cost of labour is going up because we have a serious shortage of truck drivers in New Zealand, so companies are having to pay more to attract and retain drivers. And the cost of parts is increasing because of supply chain hold-ups. No costs are going down.
“These increases will blow right through the supply chain and will add cost to everything consumers buy, from groceries to clothing to building supplies.”
Smith said it was not possible to say exactly how much the cost increases might be. “Every single carrier is different, so it’s not possible to talk generically about the freight cost increases.”
NRC offers fuel discounts through MobilCard and Z Energy and has cost calculators to assist its 1,800 members who collectively operate 16,000 trucks throughout New Zealand.