NowGo by Shippit research highlights how Australian delivery fleets are responding to the fuel crisis

Surging fuel prices are putting immense pressure on the supply chain moving freight around Australia. According to research released today from NowGo by Shippit, 83% of local carriers say fuel price volatility will be their single biggest operational challenge in the coming year.

The research also revealed that half have already implemented temporary fuel surcharges in the last 12 months. Other measures include:

• One in three have simply absorbed the costs themselves

• One in six have negotiated contracts with major customers 

• One in six are optimising fleets and routes to use fuel more efficiently

One in three respondents said that electric/alternative fuel vehicles will be the biggest trend in the sector in the next 2-3 years. However, despite widespread acknowledgement that change is coming, four in five carrier companies say less than 10% of their existing fleet runs on electric/alternative fuels.

“While today’s environment is particularly stark, our research reflects what we're hearing every day from carriers across the country: fuel volatility isn't a blip, it's a structural pressure that's reshaping how the entire delivery ecosystem operates,” commented Will On, Co-Founder and Joint CEO of NowGo by Shippit.

“When 83% of carriers name it as their number one challenge and half have already turned to surcharges just to stay afloat, that cost doesn't disappear. It either gets passed down the chain to brands and ultimately their customers, or it erodes the margins of operators who can't afford to lose the business. 

“Many carriers are transitioning away from a traditionally monthly cycle to more frequent weekly or fortnightly fuel surcharge reviews. The flow-on effects of all of this will be broad: from driver shortages to longer delivery lead times.

“What makes this particularly acute is the transition we're seeing. One in six carriers are using technology to optimise both their fleets and their routes to use fuel more efficiently. In this environment, every unnecessary kilometre driven is money leaving the business. That's the problem NowGo was built to solve. Through AI-powered route optimisation and ‘hyperbatching’ order, we've helped fleets save millions of KM on the road; helping them reduce fuel burn and protect margin at a time when every litre counts."