Freight costs jump towards $4 per carton as fuel spike hits growers

The recent surge in global fuel prices driven by the ongoing war in the Middle East is pushing up freight costs across Australia’s horticulture supply chain. Diesel has increased by nearly 80 per cent from $1.80 to $3.20 over the last month.

For growers, the impact is already being felt at the carton level. They are reporting that freight rates, on a typical run from the main growing region of Shepparton to Sydney, have risen from $3.30 to $4.00 per 12kg carton.

Growers should look to the supermarkets to automatically factor this price increase into the prices they offer growers.

In addition, the Australian Government has responded with temporary relief measures, including a 50 per cent cut to the fuel excise and the removal of the heavy vehicle charge for three months. The combined measures are expected to reduce the cost of fuel to trucking companies by around 32 cents per litre. Growers should also expect these savings are passed on to them.

APAL will continue to monitor freight and fuel developments and keep growers updated.