Fastway Couriers takes a proactive stance to prevent price hike

Fastway Couriers has protested looming changes to the Road User Charges (RUC) system in New Zealand, stating the soon-to-be-implemented pricing structure will unfairly affect the courier services industry which may increase the cost of courier services to the end user.

What does this mean for courier service franchises?
Heavy vehicles will be charged based on maximum legal carrying capacity and axle configuration, rather than the vehicle's dead weight. The system is said to reduce opportunities for transport companies and individuals to illegally circumvent charges.

"The new Weight Bands Structure means the courier and express parcel sector of the transport industry willbe hit with significantly higher fees simply to stay in business," says Fastway Couriers NZ Chief Executive, Bruce Speers.

"Courier companies use light vans to distribute items within urban centres and diesel trucks to transport packages between depots. In the case of our trucks, our linehaul vehicles carry goods which are more voluminous than they are heavy. There will be no consideration given to operators who specialise in transporting lighter loads. With the new system in place,our trucks will be assessed on the same basis as heavy logging vehicles. As a result, even though our loadsare much lighter, we will be charged the same rate."

According to Speers, Fastway Couriers franchises may be paying approximately 20-25% more in RUC's every year once this system is formally introduced in August.

In addition to the new road user charges, the express parcel sector is also facing changes under the Consumer Law Reform Bill which will result in significant costs to the sector.

"If either of these laws are adopted, courier companies across New Zealand will have no option but to raisetheir prices, which will in turn raise the cost of moving goods for the average consumer. As Fastway is one of the key courier service providers to the SME sector, it may be necessary for retailers and suppliers to passthe higher costs onto their customers," says Speers.

"As an organisation whose courier services are in transporting lighter weight goods, we do not believe ourbusiness should subsidise operators who rely on far heavier loads and vehicles. We advocate for more extensive industry consultation before these changes pass to law."

Fastway Couriers currently operates 320 franchises and 24 linehaul vehicles in New Zealand.