Long-haul rates could be adjusted as fuel prices tumbles

With the latest 62.68 cents per litre drop to 986c/l (at the coast) in the price of wholesale diesel (the 0.05% sulphur used by truckers), that’s two months on the trot that prices have come down significantly, and they are now even lower than the price in January this year. The annual year-on-year increase for diesel has eased to 11. 6% in July from 15.9% in June, 37. 9% in December, and 34. 2% in November. There may also be year-onyear declines in prices for the rest of this year, provided there is continuing strengthening of the rand and weaker international oil prices. If falling fuel costs have already seen airlines cutting their fuel surcharges, are we likely to see the same thing happening amongst the SA trucking brigade? More likely on the longhaul than on the short-haul container delivery trucks, according to Kevin Martin, MD of Freightliner and chairman of the Durban Harbour Carriers’ Association (DHCA). “The rates for long-distance truckers are always linked to the fuel price,” he told FTW. “When the Seifsa (Steel and Engineering Industries Federation of SA) index for road transport rises, the truckers’ surcharge goes up. When it drops, so does the surcharge.” But, Martin added, the diesel price is not such a significant factor for shorthaul truckers. An allowance for estimated annual fuel price changes is built into the rates at the beginning of the year, and only a few of the companies have a fuel surcharge – so price changes are unlikely.