Yesterday, news broke that Scott’s Refrigerated Logistics – one of Australia’s biggest trucking firms, which supplies all major supermarkets, including Woolworths, Coles, IGA and Aldi – had been plunged into receivership. This leaves 1500 jobs in the lurch and the delivery of food supplies might be at risk .
However, according to Road Freight NSW CEO Simon O’Hara, the situation was “just the tip of the iceberg” for the struggling sector, and that supply chains would certainly be impacted. “Scott’s has been a major part of the refrigerated transport space for some time, and this is significant. What we’re seeing for the first time is a larger, more significant part of the supply chain going into insolvency,” he explained.
“What we’ve been seeing for about the last 12 months is a number of road freight companies and truckies deciding they no longer want to remain in the industry and pulling the pin. It’s symptomatic of what’s been happening in the freight industry, and this won’t be the last.”
Extremely thin margins are common for transport operators, despite the booming profits of major retailers, such as Aldi, which is estimated to have seen an 8.4 per cent profit margin in 2022.
Source: news.com.au