Calf transport: High freight costs won’t slow demand at weaner sales

Rising transport costs won’t worry buyers at the upcoming calf sales. Here’s why.

High freight costs won’t scare buyers keen to secure numbers at this year’s weaner calf sales.

Transport costs have risen in line with fuel and transit insurance, but despite those increases being passed on to customers, trucking companies say business is busier than ever.

Boyle’s Livestock Transport run 20 trucks out of Warrnambool and operator Anthony Boyle said whether the cattle were dear or cheap, the stock still had to be shifted.

“When the job is like it is, most people are very understanding because they can afford to be,” Anthony said.

“Their main concern is that their stock is loaded comfortably … because it is worth so much.

“The cost of freight is what it is as long as the stock is presented well and that’s great for all of us because we aren’t under pressure to put more stock on.”

Shanahan’s Livestock Transport operator Dom Shanahan said they weren’t immune to input rises.

“We don’t like doing it but we’ve had to lift our rates as the year has gone on,” Dom said.

“Our clients aren’t worried. They understand the fella down the road is putting his up too. It is across the whole industry.”

Shanahan’s Livestock Transport’s Dom Shanahan and his son Jack, 11. Picture: Yuri Kouzmin

Australian Institute of Petroleum figures show national diesel prices have increased by 45.7c/litre on this time last year to 163.7c/litre.

Anthony Boyle said the risk and exposure of transport operators was higher now too given the increased value of cargo and subsequent responsibility.

“Our transit insurance premiums have increased by 40 per cent,” Anthony said.

“We’ve gone from $100,000 worth of cover to $200,000 just for the stock we are carrying.

“I have never had so many calls from customers asking what we cover and don’t cover.”

Transport operators are also facing staffing issues, ongoing border Covid-19 requirement hurdles with limited testing facilities and wage increase pressure to counteract staff shortages. The cost of new trucks and crates has also blown out.

“A brand new truck will cost you close to $400,000 and a set of trailers is almost the same so you are looking at $750,000 for a complete outfit,” Dom said.

“If you put $200,000 worth of cattle on it … some of these trucks are nudging down the road at close to a million dollars-worth.”

Mortlake livestock agent Matt Baxter said buyers were willing to pay for quality and if they wanted the stock would pay the transport fees. If there was no margin, they wouldn’t buy them.

“The cost of everything is going up … rates at the other end are going up too with heavy bullocks making good money … it’s all going the same way otherwise we wouldn’t be seeing the prices we are seeing,” Matt said.

“There are lots of different markets … lots of ways to sell cattle at the other end. It (transport) is something that the buyers will have to weigh up.”