Corrosion at the seams of globalised trade. Credit is an efficiency lubricant. Without it and the efficiencies it breeds (competition, new technology, fuel efficiency etc)getting things to market gets more expensive ...
----------------------------------------------------- Credit squeeze driving truckers to the wall Transport and Logistics News - ýMar 10, 2009ý
The shortage of finance available for business investment is hitting transport companies hard, despite the Federal Government's 30 per cent investment allowance.
The Australian Trucking Association is taking up the shortage of credit for trucking companies with the Australian Government, following discussions with trucking operators and industry suppliers this week.
ATA Chairman Trevor Martyn said credit availability was a growing problem across the industry.
“A number of major lenders have effectively stopped lending to transport companies, or are charging higher interest rates than the market average,” Mr Martyn said.
“As a result, some trucking companies are finding it hard to buy replacement equipment, which is affecting their operations and the industry’s suppliers, too.”
The managing director of MaxiTrans, Michael Brockhoff, said the shortage of credit was the biggest issue the company was facing every day.
“Right across our brands, we’ve got encouraging quotation levels, especially as a result of the 30 per cent investment allowance, but customers are unable to get credit to complete the sale,” Mr Brockhoff said.
MaxiTrans is Australia's largest manufacturer and supplier of trailing transport equipment and solutions, including through the two market leading brands Freighter and Maxi-CUBE.
Mr Martyn said the ATA had written to the Minister for Small Business, Craig Emerson, as the first step in putting the industry’s concerns to the government.
“Minister Emerson is taking point for the government on the issue, and in fact is holding a round table on credit availability with the banks today,” he said.
“We’ve had a useful discussion with his office already, and will be seeking a formal meeting once we have the results from the credit availability survey that we have launched today.”
Have your say with the ATA’s credit availability survey
Whether you’re a truck operator or an industry supplier, the ATA wants to find out what you think about the availability of credit for your business and customers.
The ATA has launched an online survey and will use the results of the survey in its discussions with the Australian Government.
The survey will only take a few minutes to complete and the answers will be completely private. T&Lnews or the ATA won’t be able to tell who you are, and your answers will be added together with others before they are used.
