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,” said RFNSW chief executive Simon O’Hara.
“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.
Mr O’Hara added that 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,” he said.
“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.”
