Diesel Fuel Price Rises causing significant freight transport costs to increase

24th March, 2022

We have again seen a continual and substantial increase in both Petrol and Diesel pricing across the world. These constant increases have been driven by the global supply chain disruptions, due to the COVID pandemic, port closures, congestion and more recently the Ukraine crisis. This impacts air, sea and transport costs globally.

Over the last few weeks, Australian’s have been feeling the impact at the bowser and it is having a significant impact on freight transport pricing. In just over a month, the price of diesel has increased by 17% nationally and the price surge is expected to keep rising.

Transport operators have been reviewing the impact that this dramatic hike in fuel prices is having on their operational costs and are having to increase fuel surcharges to remain viable. Most freight transport operators have for many years levied a fuel surcharge to account for the fluctuation in fuel prices rather than adjust their freight base rate pricing. For most container transport operators (in metropolitan transport settings), fuel costs account for between 17% to 22% of their overall operating costs of heavy vehicles and are even higher for regional areas.

For example, if the fuel surcharge rate was 16% prior to the recent hikes in diesel prices, then it is not unrealistic for the fuel surcharge to rise to between 21% to 22%. All fuel surcharges from our many transport providers are passed on at cost as invoiced, we thank you for your understanding.

Please don’t hesitate to contact your friendly SCC staff member for more information at sales@sccargo.com.au