LOCAL TRANSPORT OPERATORS ‘HIT HARD’ BY CoVID19

LOCAL TRANSPORT OPERATORS ‘HIT HARD’ BY CoVID19

Last week after discussions with the Road Freight NSW Policy Council, we decided to make public comment about the effects of CoVid19 on our operators and the supply chain. Additionally, we wanted to make the big end of town in finance aware that they need to start thinking about being flexible, nuanced and compassionate with their contracts and payments from our operators during this time.

We had held off making public comment because we didn’t want to add to the hysteria surrounding the ‘news’ surrounding the effects of this virus. However, we believed that given the effects we are now seeing in the local industry; it was time for our operators to put forward their views.

You can read the article in the Australian Financial Review here:



And the RFNSW media release here:

Peak body Road Freight NSW (RFNSW) is working with industry partners and other stakeholders on contingency plans to provide support to its members effected by the dire economic consequences of the spread of the Coronavirus (COVID-19) on the Australian transport industry.

With significant reliance on trade from China, RFNSW reports that rapidly-diminishing container and air-freight volumes of Chinese imports, particularly manufactured consumer goods, have started to negatively impact local supply chains.

“A growing number of truck operators are telling us their businesses are being severely pressured and disrupted by the flow-on effects that the Coronavirus is having on Australian trade and logistics,” RFNSW Chief Executive, Simon O’Hara, said today.

“Mass freight cancellations from China have caused imports to dry-up and conversely, Chinese production plants are still in shut-down mode, limiting shipping of raw materials from Australia.

“Either way, the knock-on effects of the Coronavirus have hit local transport operators hard – and this diminished level of trade is unsustainable, particularly for our members who are small, family-run businesses.

“Looking ahead, even when Chinese manufacturers pick-up production again, and freight begins to flow again, there will be a 2-3 month lag in the supply chain, given that ships typically spend several weeks at sea.

“Our members are already operating on incredibly tight margins and this downturn is a real threat to their viability. RFNSW is working closely with our partner AI Group, our fellow industry organisations and most importantly, our members, so we can mitigate this threat to local businesses – we’re also calling on banks and other lenders to show some understanding and patience with truck operators struggling with repayments during these tough times.”

Best regards

Simon O’Hara

Road Freight NSW

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Road Freight NSW contact details

56 Fitzroy Street Marrickville NSW 2204

Tel: (02) 9557 1205

info@rfnsw.com.au

www.roadfreightnsw.com.au

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