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FUEL COST TROUBLES * Australia - Truckers warn of transport crisis as diesel price soars
The skyrocketing cost of diesel has put the trucking industry in crisis and the only short-term solution is to increase freight costs by up to 10 per cent
Canberra,Australian Capital Territory,Australia -The Canberra Times, by DAVID CURRY -29 May 2008: -- ... Speaking at the National Trucking Convention at the Canberra Convention Centre yesterday, the Australian Trucking Association chairman Trevor Martyn said small trucking companies and owner drivers could no longer absorb the cost of diesel... In a separate statement he said if the industry's customers did not accept the need to pay freight costs that reflected the price of fuel, many trucking companies would go to the wall and there would be no way to move goods quickly... A Queensland owner-driver attending the convention, Frank Black, said smaller operators, as sub-contractors, were often not in a position to negotiate higher freight costs with the prime contractor... He said many owner drivers he knew were leaving the industry because they could no longer make a living. Those still driving were tempted to breach the safety laws and guidelines to break even... ''You've got to minimal sustainable rates to make the industry safe. All the rules and laws are going to count for nothing unless they fix the viability of [the industry].''... Federal Minister for Transport Anthony Albanese made no mention of the price of diesel or driver shortages when he addressed the convention yesterday... He talked instead about the Rudd Government's planned expenditure on infrastructure, drawn from the $20 billion ''building Australia'' fund announced in the budget...Labels: fuel cost troubles
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