Frank Black, a veteran truck driver with 40 years of experience, has been forced to park his truck for over two weeks as soaring diesel prices make it unviable to work. The global fuel crisis, triggered by the war in Iran, has pushed diesel prices from around $1.80 per litre to a peak of $3.20 in April. As an owner-driver, Black operates on slim margins, with one-third of job revenue typically covering fuel, one-third maintenance, and the remaining third wages. When prices surged, the sums stopped adding up.
Black says the war in Iran has been 'the final nail in the coffin for a lot of people'. He estimates that long-haul owner-drivers face baseline costs of $100,000 to $200,000 per year before fuel, with total operating costs climbing well into the hundreds of thousands when fuel is included. Delayed payment terms of 30 to 120 days compound financial pressures, forcing many drivers into insolvency.
Professor David Peetz from Griffith University notes that the road freight transport industry is characterised by low profits and rising insolvency rates. If drivers cannot recoup costs, they risk bankruptcy or leaving the industry. Black warns that young drivers are particularly vulnerable, often putting their homes up as collateral against truck loans, creating a 'trap' that could lead to losing their houses.
Richard Olsen, NSW state secretary of the Transport Workers' Union, highlights the lack of bargaining power for owner-drivers against large clients such as oil companies and supermarkets like Aldi, Coles, and Woolworths. In April, the union secured a temporary Fair Work order requiring clients to pay fuel surcharges while prices exceed $2 per litre, but Olsen calls for permanent regulations to prevent drivers from cutting corners on safety to stay afloat.
Olsen warns that truck drivers face difficult choices between paying bills, feeding families, and maintaining vehicles, with maintenance often the first sacrifice. This raises serious safety concerns on the roads. Black continues to drive, taking jobs as they come, but remains uncertain about the future of his industry.
