MELBOURNE’s Swinburne University of Technology has embarked on a landmark national study to determine the plight of Australia’s road freight sector.
Swinburne, in partnership with the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts, is running the project, aimed at identifying the causes behind rising business closures and deepening financial strain across the sector.
The project is being administered through iMOVE CRC, the national centre for collaborative transport and mobility research.
The research comes at a crucial time, with the Australian road freight sector experiencing a surge in insolvencies, Swinburne says.
“Road freight is the backbone of Australia’s economy, but right now, many operators are under significant financial stress,” Professor Hadi Ghaderi said. “In some parts of the industry, margins are so tight that even small cost increases can push businesses into insolvency.”
Rapidly rising insurance and broader operating costs, alongside increasing regulatory pressure, are placing operators under significant strain, particularly for small and family-owned businesses.
“When you combine that with rising fuel prices, insurance premiums and compliance costs, the financial burden becomes very difficult to absorb,” Professor Ghaderi said.
Recent data highlights the scale of the challenge, with estimates suggesting around one in twelve road transport businesses have closed in the past year. This level of contraction is having flow-on effects across supply chains, regional economies and the cost of moving goods nationwide.
The project will address a major evidence gap by combining detailed financial analysis with industry consultation to better understand both the scale and underlying drivers of this distress, Swinburne says.
While existing reports provide useful snapshots, they often lack the depth of knowledge needed to inform effective policy, particularly when it comes to distinguishing between short-term economic shocks and more entrenched structural challenges within the industry.
“This project is about moving beyond surface-level data,” Professor Ghaderi said.
“We want to understand not just what pressures businesses are facing, but how those pressures interact, which ones matter most and how they differ across operators of different sizes and business models.”
A key aim of the study is to build a clear, evidence-based picture of where and why financial stress is occurring across the sector, helping policymakers identify targeted, practical interventions that can improve sustainability and resilience.
“There’s a real need to understand how law-abiding operators are being affected by unfair competition and broader market dynamics,” Professor Ghaderi says.
“By building a clearer picture of the industry, we can help ensure future policies support a more sustainable and resilient freight sector.”
The project is currently underway, with initial findings expected in approximately three months. As the research progresses, updates, insights and outputs will be shared via the iMOVE CRC project page.