Cost pressures continue to bite for the road freight industry, with repairs and maintenance, depreciation and interest, insurance, and wages all rising over the March quarter, according to Transporting New Zealand’s Cost Index.

The Transport Cost Index shows road freight costs have risen by 6.03% over the past year to March 2024, above CPI at 4.02%.

Transporting New Zealand interim chief executive Dom Kalasih said cost increases, combined with reduced demand (demonstrated by a month on month fall of 2.3% in the ANZ Truckometer Heavy Transport Index in May), will put pressure on many trucking firms.

“The March quarter data really highlights the importance of road freight operators keeping a close eye on their freight rates and margins, and communicating with customers about the realities of the cost pressures they’re facing,” he said.

“The average cost of both insurance and repairs and maintenance has increased by more than two percent in the March quarter alone. Fortunately this was offset somewhat by a drop in fuel prices in the same period.

“We encourage our members to check out the Transport Cost Index, our Transport Business Cost Model that can help calculate sustainable hourly and per-kilometre freight rates, and our competitive commercial discounts on fuel and business services.”

The Transport Cost Index, prepared by Grant Thornton for Transporting New Zealand, provides current and historical transport cost data and forecasts.

The Index is a quarterly report on the cost movements of the typical components that contribute to transport rates.

The Index provides a transparent and independent reference source that can support tough conversations and negotiations between transport operators and clients.

The data is underpinned by Waikato University undertaking a representative survey of transport businesses every five years to ensure the data reflects market conditions.