“It would force us out of business if we had absorbed how much our fuel bill has gone up.”
Some of the company’s drivers recently arrived at Truckstops in Auckland, Hawke’s Bay and Gisborne that had run out of diesel, forcing them to reroute, James said.
The company had 10 trucks working in Gisborne at this time of year.
When diesel ran out at Truckstops in Napier and Bay View, drivers had to re-divert them to Hastings, an additional 12-20km drive and “even more fuel burned”, James said.
He knew of other drivers who had to refuse jobs because they could not recoup the fuel costs.
The Whanganui BP Truckstop on Heads Rd has not yet run out of diesel.
James said Sharp As Linehaul got 80% of its fuel from the Whanganui site and would be significantly affected if it ran out.
Fuel prices have increased many other operational costs in the past month.
Adblue, a fluid added to diesel engines to reduce harmful emissions, increased 10c a litre.
Sharp As used 8% Adblue to every litre of diesel, James said.
Engine oil rose 20% and tyre prices 3% overnight from Tuesday March 31 to Wednesday April 1.
James said his staff had requested wage increases to cover the rise in the cost of living.
“The fuel bill is our biggest hurt, but it’s right across everything we do.”
James said they were “very transparent” with customers about why they had to increase prices.
Prices were updated weekly based on the real-time fuel costs.
“We’re just very fortunate we have good, loyal customers.”
Rising operational costs would inevitably affect grocery prices, he said.
“It’s hurting everybody.”
Dave Hoskin Carriers managing director Darrell Hoskin said his company was hesitant to raise prices at first but had since adjusted them.
“It’s certainly been tough,” he said.
The company re-established its fuel adjustment factor (Faf) with customers from February 1.
Hoskin said customers understood the reason for the rise.
“Everyone knows what’s going on.”
Diesel cost $1.43 a litre at New Zealand Truckstops the week of February 1, Hoskins said.
Diesel is $3.86 a litre this week.
Dave Hoskin Carriers spent $70,000 to $80,000 on fuel in a typical month but was now paying about $160,000 a month, he said.
“At the end of the day, our diesel bill is doubled.”
Its Faf rate is 26.99% this week and is updated weekly.
“You can ... only worry about the day in front of you at the moment,” Hoskin said.
“No one’s really got any control over what’s going to happen next week.”
He said the company’s focus had been on operating as economically as possible.
“The downfall is this is always going to revert back to the person going to the supermarket, to the dairy ... because those products have still got to get there.
“It might not have the cost increases straight away, but it’s coming.”
Hoskin said there was one silver lining he and some of his drivers had noticed – fewer people driving recklessly and speeding.
“Maybe everyone is trying to drive a little bit nicer,” he said.
“People are trying to be more economical.”
James said he had also noticed fewer speeding cars on the road.
Erin Smith is a multimedia journalist based in Whanganui.
