THE ROAD FREIGHT TRANSPORT INDUSTRY

This paper analyses the available official statistics, as at December 1992, relating to the road freight transport industry in Australia. The purpose of this paper is to examine the performance, over the 16 year period from 1975-76 to 1990-91, of the road freight industry using available data. The paper aims to provide an overview of the road freight industry, and to assess trends within it. It also summarises some of the issues and some of the more important prior studies concerning this industry. The industry represents about 2 per cent of Australian gross product and employment. Comparisons between the different modes of freight transport show that, in terms of tonnes carried, road freight represents about 70 per cent of all freight, and in terms of tonne-kilometres, about 31 per cent of total freight. In terms of tonne-kilometres, road freight has been carrying an increasing proportion of total freight. The sixteen year time series of ABS Surveys of Motor Vehicle Use (1975-76 to 1990-91) demonstrates substantial productivity gains in the road freight transport industry. With each passing year, the road freight transport industry carried heavier loads over longer distances and with less empty running. Competition was strong throughout all sectors of the industry and also there were no financial incentives to own and operate large fleet as the price-cost margin showed decreases with fleet size. The data do not tend to support perceptions of successful exploitative behaviour being exercised by the operators of the largest fleets. Most of the key issues relate to the line haul sector, notably the level of competitiveness and the cost-price squeeze, especially among owner drivers. Other issues of note include cost recovery for both road and rail, prevailing economic conditions and road safety.