The trucking industry is bracing itself for tough times ahead with the expected increase of 2.4 cents per litre as of 1 July. While trucks have been excluded from the carbon emission tax for the next few years, the fuel excise has the ability of crippling many smaller companies.
An article in Fullyloaded.com.au has more:
Veteran trucking owner Ray Ablett was warned of bleak times ahead for operators and says they must focus on their cashflow to stay in business.
Ablett, who runs the NSW-based Abletts Transport, says the current economic climate reminds him of the lead-up to the recession of the 1990s, which he says nearly sent him broke.
He believes demand for local and interstate freight will continue to decrease, and has some advice for other transport companies.
“Make sure you’re not geared up too much. Make sure your customers are good payers. Don’t be frightened to leave a customer if he’s going to fall over. Cashflow is everything. If you haven’t got cashflow you haven’t got [anything],” Ablett says.
Abletts Transport, which operates 50 trucks and employs 90 people in operations spanning Melbourne, Brisbane and Sydney, is bracing for a significant hit once the fuel excise increases 2.4 cents per litre on July 1.
The change will reduce the industry’s fuel tax credit to 12.6 cents per litre.
.Ablett estimates the increase will cost his company $337,000 next financial year.
“You have to recoup that from somewhere,” he says.
Ablett says the carbon tax, which he is opposed to, is more difficult to measure. Trucking has been spared from the tax for two years once it begins on July 1.
The tax will apply to trucking on July 1, 2014 through an increase in the excise of 6.8 cents per litre.
Source: https://www.fullyloaded.com.au/industry-news/1206/bleak-times-ahead-for-road-freight-ablett-warns
While the increased cost will be substantial when calculated over the year, a few small tips could help save a little, but even a little can add up to a lot.
1. Use the Trucks air conditioner less
Air conditioning makes your truck use more fuel, so turn it off when possible and try using the vents instead. Reduce the A/C’s load by parking in the shade so that the truck doesn’t heat up as much during short stops. Leave the windows or sunroof opened slightly if possible. Try to use only on the highway.
2. Avoid High traffic areas
Try to plan your trips to avoid congested, high-traffic areas with repeated traffic hiccups and stop-and-go driving as this uses more fuel. Though this may be difficult it’s worth a try, it will save fuel and frustration.
3. Don’t Idle too long
If you cannot avoid these high traffic areas try not to idle too long. If you’re stopped in traffic, turn the vehicle off, don’t sit there and idle for ten minutes. For short stop periods idling is fine.
4. Keep it Steady on the Road
Continuous up and down acceleration and braking reduces your fuel economy. Use your cruise control on the highway to help maintain a constant speed and take it slow and easy on starts and stops. Slow down a little in general if you can, because the truck uses more fuel when you drive at higher speeds.
5.Maintain Regularly
Make sure your truck is regularly maintained and serviced. Faulty trucks often use more fuel. Also ensure your tyres are at the correct pressure and are the right kind for your truck. Read your owner’s manual and make sure your tyres are inflated as the manufacturer recommends, because under inflation creates a drag that lowers fuel economy. Don’t forget about your truck’s wheel alignment, because you won’t get optimum fuel mileage if the truck isn’t rolling straight.
6. Global Positioning Systems Can help
The benefits of this technology are too many to mention here. Use a global positioning system (GPS) to help you navigate and find the fastest and shortest distance to your destination. Avoiding hills and stops will increase the fuel economy. Also for owners you can monitor how the truck driver is driving the vehicle and exactly where the vehicle is at all times.
Although these pointers will most probably not drastically reduce your fuel consumption, it will assist in making smarter choices that will positively affect the environment and your pocket as well.
Fuel Excise to Hamper Trucking Industry – Chain of Responsibility Alert
Share This Post
Share This Post
Facebook
Twitter
LinkedIn
Email
