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Bulk Freight Services in Australia
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Schedule a DemoBulk Freight Services in Australia market report transcript
Market Overview of Bulk Freight Services in Australia
The Australian road freight market is expected to grow at a CAGR 2.9 percent in next two years, almost 60 percent of demand for transportation comes from manufacturing, mining, retail, agro and construction industries. Future productivity gains are narrowed as demand increases. The industry will face rising issues with congestion and driver shortages.
- Svitzer is the dominant tugboat operator in Australia with market share of 60 percent and operates in major bulk ports of Australia
- Tugboat companies are consolidated and only one tugboat firm is operating in the principle bulk ports. However, the optimum situation would be some tugboat firms, competing vigorously in the port. In that event, the port authority need not regulate tariffs
- Tugboats are hired by vessel operators on ad hoc basis. The approximate hourly charges of tugboat is from $1,000–2,500, which is a significant price
- Long-term contract between shipper and tug operator is not a common practice. However, shipper and vessel operator can engage into a yearly contract (tugboat operator) with a significant amount of tonnage and maximum vessel calls
Road Freight Trend and Concerns of Trucking Industry
- The major factors shaping the Australian road freight industry are export and import of merchandise, fuel price fluctuation and wholesale trade
- Declining commodity prices in recent times and lower demand from China, which have a significant negative effect on the value of exports, which has directly impacted the road freight industry
- World oil prices and exchange rate movements are critical to the road freight seeing a clear cost pressure on the sector
- Moderate sales of goods and services for wholesale trade in Australia has dropped, which is a definite indicator for modest growth in demand for road freight
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