Tools > News > ‘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.