Fuel price increases pressure global logistics and transport sectors

Rising fuel prices are placing significant financial pressure on the transport and logistics sectors in South Africa and Australia.

In South Africa, an October fuel price adjustment has seen petrol increase by approximately 12% and diesel by up to 11%. Because fuel can account for between 35% and 55% of operating costs for transport companies, these fluctuations have an exponential effect on the supply chain. Since road freight handles over 80% of the country’s land-based freight, the price hikes are expected to impact the cost of goods for consumers.

In Western Australia, the Western Australia Transport Industry Association (WATIA) is calling for urgent freight productivity reforms to mitigate rising operating expenses. The association noted that fuel costs can consume up to 40% of a single load’s payment. To ease cost-of-living pressures, WATIA has proposed measures such as removing last-mile freight barriers, reducing intermodal delays, and eliminating unnecessary red tape to improve network efficiency ahead of the harvest and holiday seasons.