Truck Journal Articles
Speirs Finance sponsors monthly articles in the Truck Journal. Click on the links below to view.
September 2008 - What now for forestry?
Although the emissions trading scheme (ETS) has hit its share of hurdles, it seems almost inevitable that it will be passed into law in some form. One feature of the ETS that the forestry industry has been aware of for some time is the liability imposed for deforestation.
Forest owners knew that from 2008 onwards they would face a carbon liability if they... read more
August 2008 - Schizophrenic business conditions
These are interesting times for business with some adversely effected by the current trading conditions and others trading very positively. One sector trading well is the Dairy industry who are continuing to post excellent returns. The substantial dairy investments being made are having positive impacts on many parts of the rural sector. Transport operators on the other hand.... read more
July 2008 - Margins tight, and it's only the beginning
Over 2007, road transport operators managed to improve their margins after a long tight period from 2005 - 06. However, this margin growth was mainly reversed in March. Over the March quarter, road transport users' costs (excluding labour) have increased 6.5% on a year earlier while the price paid for their output increased by 9.7%.
However since March matters have taken a turn for the worse... read more
June 2008 - Don't battle today with yesterday's pricing arrangement
Pricing is key to a successful business. In today's transport environment customers are shopping their work around to achieve lower prices.
So how do you price strategically in today's environment? ...... read more
May 2008 - Biofuels
As part of the government's climate policy they have decided to implement mandatory biofuel targets for fuel retailers. One of the primary issues for the transport industry stemming from this regulation is the effect that a minimum biofuel sales target will have on the price of fuel.
The timing of the scheme is as follows.... read more
April 2008 - How are you rating?
With the data being gathered for the 'Operator Safety rating System' do you know how the information that has been gathered to date will affect your rating? With the rating data coming from current COF's roadside inspections and infringements operators need to be aware of the potential impact on their future rating.
LTNZ provide an education programme by visiting transport operators to review with them what they need to do to get an improved rating. In many cases the data collected is a surprise to the transport companies who have thought they are better than they really are. Using this service gives operators time to do something about their potential rating.... read more
March 2008 - Carbon Emissions Trading Scheme
The carbon emissions trading scheme (ETS) in the forestry industry got underway on January 1 this year. This scheme will charge the owners of forests planted prior to 1990 the 'carbon liability' associated with the Kyoto protocol should they decide to harvest trees, and gives some owners of overall forests the incentive to join the scheme and harvest fewer of their trees. The scheme will cause a reduction in log and timber production over the coming year.
How does this sheme work?... read more
February 2008 - We used to Make Money
In the many years working with and advising transport companies I have been amazed at the willingness of operators to do unprofitable work.
The title to my article is a quote from a longstanding transport operator that I met last week. It was clear from the discussion we had what their issue was. Some customers wil not pay for the increased costs so the work has become unprofitable.
The operator has been in the transport game for 24 years, which is a little less that I have been advising businesses (transport and others). In recent times... read more
December 2007 / January 2008 - Roadways to Waterways
In announcing the release of the draft strategy designed to transform coastal shipping domestic freight services in New Zealand the Minister of Transport, Annette King, referred to the New Zealand Shipping Federation draft strategy document 'From Roadways to Waterways : Enhancing New Zealand's Transport Options'.
The rather apt title, Roadways to Waterways is the way the government see up to 30% of the New Zealand domestic freight being moved in the next 30 years.
With the doubling of the freight task in the next 10 to 15 years the government is taking a lead from Europe where more freight will now be moved by water than by road.... read more
November 2007 - Turbulence Cleared - Smooth Sailing Ahead?
The global market turmoil of July and August has subsided in recent months as the US Federal Reserve steadied market nerves by dropping interest rates by 75 basis points.
The return of relative calm has seen the value of the New Zealand Dollar recover to around 76c against the US dollar, the highest rate since June. Furthermore, recent world economic indicators are pointing to increasing world demand, with US real GDP growth of 1.0% in the September quarter, and Australian real GDP growth of 0.9% in June (both seasonally adjusted).
With prospects for domestic and world economic growth improving, what's ahead for the transport industry? ..... read more
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