WHILE the demand for truck drivers remains high and employment is expected to remain constant with an average growth of 1.6% per year up until 2014, the road freight industry as a whole is expected to suffer as it faces tough competition from rail.
The impending Carbon Pollution Reduction Scheme will also see a shift from road to rail. The scheme, introduced by the Australian Government and to be implemented in 2010, set a target of a 5.0% reduction in emissions by 2020.
Fuel prices, a key factor in road freight, have plunged globally due to the industrial slowdown. While this is expected to stabilise and begin to increase in the coming year, the weakened Australian dollar means fuel prices at the pump have remained relatively steady despite the falling prices.
The Carbon Pollution Reduction Scheme will also impose permits on fuel producers with cost being passed down the supply chain. The Government has indicated an intention to offset any increase in the price of transport fuels with a cent for cent reduction in the fuel excise. For light vehicles this will apply for a minimum of three years. For heavy vehicles the fuel excise rebate will apply for only one year.
In general, total freight movements and growth have been slumping due to factors such as the economic downturn, poor consumer confidence, and contracting exports expected for 2009 to 2010.
Business information researcher IBISWorld has estimated an average revenue growth of 3.0%.
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