Key insurance outtakes from Q2?
Transport operators experienced ongoing fuel price volatility over the course of Q2. Many faced worker shortages, resulting in trucks being out of action for extended periods. Delays in the supply of replacement parts for repairs are further compounding this issue – something we expect will continue for some time.
Industry insights for Q3?
Safety will remain a key focus. We continue to encourage clients to consider truck models equipped with safety features such as pedestrian detection, active attention assist, lane departure warning systems, and brake assist to help mitigate risks.
There has been a significant uptake in the use of Electronic Work Diaries (EWDs) which allow drivers to accurately record their trips electronically. Recent approval from the National Heavy Vehicle Regulator to include Advanced Fatigue Management (AFM) within EWDs shows a commitment to working with the industry to further address the issue. We encourage all clients to consider EWDs in their operations to not only reduce the risk of claims arising from fatigue/driver error but to help prioritise drivers’ health. You can contact providers such as Hubfleet, Bustle & Kynection to find out more.
The Australian Government has committed over $4 million towards Round 8 of the Heavy Vehicle Safety Initiative (HVSI) to fund new projects to deliver a safer heavy vehicle industry. Project submissions must address the themes of safer drivers, safer vehicles, or safer road use by investing in driver or supply chain skills and training, vehicle safety technologies and improvements, or heavy vehicle educational tools and resources. For more information on the HVSI program, including the submission process and eligibility, visit www.nhvr.gov.au/hvsi.
Consumer demand for sustainable deliveries. Australian consumers are increasingly conscious of the environmental impact of logistics. Electric vehicle (EV) uptake is one lever operators can use to address this issue and it can also help operators manage fuel price volatility.
We continue to have discussions with key insurers regarding electric trucks and technologies and the premium affordability for transport operators. We can provide you with insurance solutions for electric trucks or conduct a review of your existing policy to ensure you’re covered appropriately. Please get in touch with the Transport & Logistics team for any assistance.
Developments to watch over the remainder of FY23?
Cybersecurity risks will remain a challenge for the industry, which could be a target for malicious attacks because it supports many of the nation’s infrastructure sectors. From May, The Australian Cyber Security Centre will be hosting a series of exercises to help transport and logistics companies improve their cyber security resilience.
Continued labour shortages. Some of this may be offset by a lower demand for goods if an economic downturn eventuates.