FUEL spikes and supply shortages have left container transport operators scrambling, with some making a switch from bulk to retail suppliers in the short term.
Regional Victoria operator, Kreskas Brothers, owns a modern fleet of, Kenworth, Freightliner, Mercedes Benz and Mack vehicles, with 50 prime movers between their linehaul fleet and local division.
The linehaul division that operates between Shepparton and the Port of Melbourne completes a 440km round trip twice daily, averaging 880km per day.
Kreskas Brothers general manager Adam Katsoutas said a cost increase in “the lifeblood of the industry” meant they observed "a significant disadvantage faced by local fuel suppliers compared to major retailers".
"To remain competitive, we temporarily pivoted from a bulk fuel supply model to a retail fuel card model. While supply constraints were less impactful, pricing pressures had a far greater effect on our operations," Mr Katsoutas said.
A Brisbane container transport specialist, who requested to remain anonymous, said they considered switching to retail, but stopped short due to maintaining loyalty to their long-term bulk supplier.
Container Transport Alliance Australia director Neil Chambers said the problem went beyond supply issues.
"What we have now is not a fuel supply crisis, but a price and cash-flow crisis," Mr Chambers said.
Nowrys Haulage director Joy Kelly said they were lucky their customers "accepted the passing on of all increases immediately".
The husband-and-wife duo operates 12 trucks as A-double, B-double and semi combinations, mostly within the metro area, clocking up 1200km a week for each vehicle.
Ms Kelly said their business received “a very small amount of pushback from a couple of customers” so that they could “provide notice to their customers”.
“I was very firm that our increase would be applicable immediately as this was all out of our control," Ms Kelly said.
"We had to manage the increased costs until the money started coming in for those increases.
"I think this is something that a lot of companies struggled with, as the costs of everything from insurances to mechanical to fuel was already increasing."
Ms Scott also added operators with 30, 60, or 90-day accounts had to have enough money to cover additional costs incurred by the higher fuel cost.
“I know of many companies who could not do this and had to park up,” she said.
"Some companies implemented tighter terms or stopped being as lenient with overdue accounts.”
Other “bigger struggles” were increased administration (reviewing invoices daily instead of once a month) and educating customers on the price increase.
“My invoicing was out of control as some of our jobs are carried out over multiple days – the charges for these [jobs] was billed out at the fuel rate on that day,” she said.
“Some people could not understand why the price at the bowser was cheaper than what we were getting it.
“Our supplier is a smaller company and could not get the same pricing that someone like BP could get it. People also don’t understand why the gate price is X amount, but our buy price is more than this.”