Another small factor driving (no pun intended) LAU's SP...

Another small factor driving (no pun intended) LAU's SP accretion may be that a few investors have cottoned on to Mr Kim Lindsay, CEO's suggestions that there is continuing to be an exit of small road transport operators.

By this he is referring to intercapital and longer distance intrastate sole proprietor operators of 'rigs', historically numerous but perhaps challenged by the cost of diesel fuel, increasing competition from the likes of behemoth Linfox (and LAU!) plus the rise in interest rates making borrowings for a truck more expensive.

The median age of truck drivers is well above 50 in Australia, so many owner-operators would be looking to retire as it's a pressured life trying to deliver road freight overnight between some capitals. Allegedly, fewer younger males want to have this 'lifestyle', and very few females find it an attractive workplace choice.

We lack statistics but it's been a very fragmented subsector, so ripe for continuing consolidation.