CONTAINER transport operators should review fuel surcharge rates at least weekly as terminal gate prices (TGP) soar, the Container Transport Alliance of Australia (CTAA) says.
The Australian Institute of Petroleum reported TGP for diesel rising between 29.2% and 30.7% across Australian cities between 4 March and 10 March.
CTAA director Neil Chambers said the likelihood of the Middle East conflict continuing for a few more weeks was having a dramatic impact upon diesel prices.
"All container transport logistics (road and rail) in Australian is reliant on diesel fuel. Therefore, rising diesel prices add cost-push inflation to the entire container freight supply chain, which will be passed on ultimately as higher prices.”
Mr Chambers said most container transport operators recovered price fluctuations using a fuel surcharge mechanism as a separate cost item from base cartage costs.
Alternatively, operators had mechanisms to recover fuel pricing fluctuations in transport contracts with customers.
"CTAA agrees with other industry commentators however, like the Australian Trucking Association (ATA), which has stated that transport businesses cannot be expected to absorb the cost of increased fuel prices," Mr Chambers said.
"The Australian container transport logistics sector, just like all other transport sectors, is a 'price taker' of diesel fuel pricing set by fuel importers and distributors."
Mr Chambers said every increase of five cents per litre for diesel equated to an increase of about 0.7% in fuel surcharge.
"The federal government, with the support of the states, has already 'baked in' an increase in the Road User Charge (RUC) paid by all heavy vehicles for the use of public roads in Australia of a further 6% from 1 July 2026," he said.
"This will lead to a reduction of 6% in the rate of fuel tax credits eligible for transport operators to claim through the tax system.
"The outcome of that will equate to at least a further 1% increase in the fuel surcharge rates levied by container transport operators."