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‘FIXED BACKHAUL RATE NOT PROFITABLE FOR ODS’

May 26, 2016 at 12:17 PM CST
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http://www.fullyloaded.com.au/industry-news/1605/fixed-backhaul-rate-not-profitable-for-ods/

Industry economist and academic Kim Hassall looks at aviation industry examples to analyse whether a fixed rate scenario would have worked for the Australian road transport industry.

The Road Safety Remuneration Tribunal (RSRT’s) minimum rates order set about to regulate non-directional driver rates, which could have caused major problems, Hassall says.

Demand and supply across a network calls for a need of spot rates, particularly for the lower demand backhauls.

"In many circumstances, backhauls are essentially repositioning trips to get the truck back to a particular town or city in order to undertake another trip in the next day or so.