NIBA / Special Feature
number of aspects to this that need careful consideration. “We are acutely aware that transport operators are running a business – often at very small margins,” says Brooke Caldwell, National Heavy Motor Product Manager – Fleet, at NTI. “If something happens to one of their drivers or vehicles, and they’re off the road for any period of time, transport operators will face both operational disruption, such as delivery delays or increased workloads for existing drivers, or financial loss. Sometimes, paying a subcontractor to fulfil the contracts to avoid reputational damage or lost contracts. One event can become a significant unexpected expense.” And that’s if they can find drivers in the first place. It’s estimated that there are 28,000 unfilled heavy-vehicle driving jobs in Australia, and more than half of the current workforce are over 55 and heading towards retirement. Unless something changes, you don’t need 20/20 vision to see a crisis is looming. And that crisis may already be emerging, given the
It almost goes without saying that heavy goods transport – both on the roads and at sea – is vital to keeping our everyday life moving. However, it’s a sector full of challenges. And right at the top of that list currently? Alternative fuels for heavy vehicles, with zero emission heavy vehicles (ZEHVs) high on the list of discussion points across the sector. Electric vehicles are being pushed significantly in certain quarters, yet question marks still remain about batteries, range and the true, full-life environmental benefit. Given that, hydrogen fuel is becoming an increasingly viable alternative, and one which, while on-road numbers are small at present, is something that brokers in this space are keeping a firm handle on. “Anecdotally at least, a lot of people in the transport sector see hydrogen as the future,” says Steve Richards, Executive Manager – Transport & Logistics at RSM Group.
“We’ve got some operators dipping their toes into electric vehicles, but the biggest hesitations are around technological maturity. If you go out and spend on a couple of electric trucks, you really don’t know what the sale price will be in a couple of years. “The other question mark is battery durability. How long does it really last? How much does it cost to replace? Do you get the same mileage and therefore productivity? And then you have the charging infrastructure – which is sparse but getting better – that can potentially be tied in with driver breaks.” Of course, while investing in a ZEHV brings with it some economic challenges in terms of that future value, as well as the more practical challenges regarding charging and the logistical application, you can argue that the economic challenges are also present with any new diesel vehicle purchase, too. What is certain, however, is that regardless of what’s fuelling the vehicles, we all need drivers on the road. And there are a
50 / INSURANCE ADVISER JUNE/JULY 2025
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