'Costs must go up': Freight companies warn of looming truckie shortage

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'Costs must go up': Freight companies warn of looming truckie shortage

By Emma Koehn

The Australian Logistics Council has warned Australian consumers will take a hit as the cost of goods ramps up if the country doesn't address an impending truck driver shortage, echoing recent calls from smaller freight companies for a national training and technology plan for the sector.

"When the system is restricted, whether it’s because of a lack of drivers, policies, [or] infrastructure, then the costs are increased. If we don't address these issues today, costs for consumers must go up," the council's chief executive Kirk Coningham said.

Freight operators have told a Senate committee they're concerned about recruitment and the rollout of safety technology.

Freight operators have told a Senate committee they're concerned about recruitment and the rollout of safety technology.Credit: Jason South

An impending truck driver shortage and a lack of a consistent plan for safety technology are key themes to emerge from the more than 60 public submissions made to a Senate committee reviewing safety and efficiency in Australia's road transport sector.

Many of the submissions point to a looming staffing crisis in freight transport, with claims the sector is thought of as an unattractive and unsafe career path. In its submission, the Logistics Council, which represents some of Australia's largest freight operator networks, said the sector also has trouble attracting women and workers from a varierty of backgrounds because of a perception it is an unwelcoming place.

It has called for a national strategy to address what it views as an impending crunch. Last month, smaller trucking operators called for new TAFE pathways to jobs in the freight industry to help grow the sector.

The number of jobs in the sector is set to climb beyond 220,000 over the next five years, though more than half the workforce is approaching retirement and aged over 45, according to Department of Employment, Skills, Small and Family Business data.

Seriously, this industry is at a point where we’re entering crisis now.

Senator Glenn Serle

Safety is also a key concern when considering the attractiveness of the sector, with a number of submissions calling for a national framework or standard for adopting more cutting-edge safety technologies.

Australian Logistics Council chief executive Kirk Coningham

Australian Logistics Council chief executive Kirk Coningham

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Some technology startups have found a niche in this space but say more needs to be done.

Queensland business SmartCap Technologies has built a client base for its real-time fatigue monitoring tools in the mining industry over the past decade. It it is now focused on the road freight sector.

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Its submission to the committee called for the formal recognition of technologies like the SmartCap system as a way of mitigating risk.

"I think it helps both smaller and larger operators to take that step [towards investment] if a number of technologies were listed in an approved framework, so businesses don't feel like they're out on their own," SmartCap chief executive Tim Ekert said.

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The inquiry is being overseen by Labor Senator Glenn Sterle, who said it was needed because supply chains were being squeezed in the logistics sector to a point where drivers were under intense time and financial pressure when doing their jobs.

"Seriously, this industry is at a point where we’re entering crisis now," Senator Sterle said.

The federal government has a range of heavy vehicle safety policies, including road improvement plans and the Heavy Vehicle Safety Initiative, which is currently calling for applications for new safety programs to be funded.

A spokesperson for the Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, Michael McCormack, said the government welcomed the review.

"The Australian government is working closely with the industry to deliver record investment in safe and productive road infrastructure, support the uptake of new vehicle technology and facilitate effective reform to support the ongoing support of the sector," the spokesperson said.

The government won't receive the report until October 2020, though public hearings will be launched across the country from this month.

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