There has been unprecedented transport cost increases this quarter, according to new data from Ia Ara Aotearoa Transporting New Zealand.

Produced for Transporting New Zealand members, the Grant Thornton Cost Index report shows that for the quarter ending March 2022 the price of diesel fuel increased over 14%.

“What is even more concerning is that 14% change is forecast to be more than 24% over the next quarter,” said Transporting New Zealand chief executive, Nick Leggett.

When the average fuel price for the quarter ending March 2022 is compared with the same quarter last year, that represents an annual increase of 55%.

“This shouldn’t be a surprise to anyone, but it’s good to take an evidence-based approach to understanding how the proportions of costs across the categories have changed for operators,” Leggett said.

Transporting New Zealand has launched an online survey for all industry operators across the country to better understand the cost pressures they are facing in real time.

“While previously the Index has estimated that fuel might be 15 to 20% of a transport operator’s costs, it’s clear that is now far higher,” Leggett said.

“We want to gauge where that might sit for different sectors of the transport industry in different parts of the country. Hence the need for a survey.”

The cost indices for tyres and wages have also increased over 12% and over 5% respectively in the last year.

“This is how the increasing cost of transport is baked into all the goods and services we purchase,” said Leggett.

“Sadly, these increases are the reality of the current period of high inflation and transport businesses, who already operate in a low-margin environment, have no choice but to pass that on to their customers.

“Operators must know their costs and where the increases are coming from so they can accurately charge for their services,” he said.

“Our message to the industry continues to be that it is not the time to try to internalise these extra expenses in order to provide their customers with a free lunch.

“Cost increases must be fairly passed on because indications are that this period of high inflation may be with us for some time.”

Transport operators can be in to win a Prezzy Card by completing the survey at:

www.surveymonkey.com/r/9CXDB5K.

The survey will close on Tuesday 5 July at 5pm.