The addition of 30 cents a litre to the fuel levy, another rise in interest rates and consignor/consignee legislation are adding layers of cost to a transport industry struggling to remain profitable.

In response, small and large operators alike are likely to lengthen their replacement cycles. This will have cost implications on the maintenance of vehicles, which rise as vehicles age – a grave concern when the roadworthiness of vehicles is considered.

The increased fuel price will see costs being passed onto customers while many operators are being forced to absorb the additional cost. In addition, what still has to be quantified is the costs of consignor/consignee legislation, which demands that certain standards are maintained by transport operators moving more than 500 000kg’s a month.

“Although the legislation focuses on reducing the overloading of vehicles, the damage to roads and demands that operators are insured – changes which are to be lauded – the costs of adhering to the law will undoubtedly impact the industry,” says the head of vehicle and asset finance: business at Standard Bank, Toni Fritz.

This impact has to be seriously considered in a country with a lack of competitive rail freight services.

Key requirements of consignee/consignor legislation are that:

• A consignor and consignee take ‘all reasonable steps’ to avoid overloading a vehicle
• In the event of prosecution, the consignor or consignee are able to show the steps taken to avoid the overloading of vehicles
• Accurate documentation is maintained as it could be used as evidence in court
• If a vehicle ‘is not loaded in terms of the provisions for the loading and transportation of goods as prescribed in the Act’, a consignor must have a written submission as to the payload of the said vehicle and the distribution of such a load on that vehicle
• If a consignor is responsible for the loading of a vehicle of an operator, he or she shall take such steps as are necessary to ensure that the vehicle is loaded correctly in terms of the Act
• A consignor or consignee cannot conclude a contract with the operator to transport goods on a vehicle if the vehicle is overloaded when the load is transported
• Insurance that provides for any incident that is caused by a load while being transported.

“The practical impact of the legislation is that to comply, operators have to install specialised weighbridges to measure axles and axle unit weights, which is a considerable cost for many operators.”

Increased administration and time lost through completing required documentation, as well as the need for comprehensive liability insurance, can also be financially onerous.

“Through this legislation, there is the possibility of fewer incidents involving overloaded trucks. Overall safety may improve and road infrastructure damage could be reduced, although these positive outcomes also depend on effective law enforcement,” Fritz concludes.