“Gift & Homewares retailers tend to pass on petrol rises immediately as they price goods based on the current landed price. However the price of many other consumer goods may also rise again as the freight industry passes on fuel costs, which make up more than a third of their operating expenses. A more serious concern to retailers and c is the quality of service provided by Australian freight companies. Australian Trucking Association chief executive Stuart St Clair has recently said that whilst most large trucking operators have charged a fuel levy for some time, many smaller operators have not. He has warned them to ensure their prices reflect higher fuel costs or risk going under. Whilst freight companies cut costs customers see that they all seem to be cutting corners and squeezing employees and service levels. The outcome is late deliveries through cutting back delivery runs, and more miss-directed freight. Even worse is the rising level of damaged stock through careless handling from employees that are not happy with their jobs. This causes significant losses and costs which eventually get passed on to consumers. The time retailer and wholesaler staff spend chasing missing freight is considered another unreasonable cost foisted upon them by a poorly administered Australian freight industry. Major Australian freight companies seem to care little for their reputation as reliable contractors.”
Retail Industry Still Suffering from Freight Contractors.
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