Australia's truck sector faces fuel, staff & safety strain

Microlise executive Luke Olsen has warned that Australia's heavy vehicle sector is facing converging cost, workforce and safety pressures as it marks a series of national awareness campaigns and grapples with rising fuel prices and tighter regulation.

NatRoad reports that 70% of operators fear collapse within six months amid a national fuel crisis. That has intensified scrutiny of how fleets manage costs and risk, particularly in regional Australia where diesel prices have spiked.

Olsen, Microlise's managing director for APAC, said many operators entered the current fuel shock with little financial room to move. Recent insolvency data shows failures rising sharply across the sector as smaller firms struggle with cashflow and have limited pricing power against large customers.

"When operating costs shift, transport operators have very little buffer to work with - and we are seeing the real impacts of that across the industry, with transport company liquidations up 48% on the prior year. This pressure is further amplified on companies operating in regional and rural areas, with the price of diesel recently exceeding $3 per litre in these locations. While the Government measures are an important step in managing short term instability, transport operators also need assurance that they will be able to manage ongoing cost pressures that were present before the war," said Luke Olsen, Managing Director, APAC, Microlise.

Research cited by Olsen shows only 58% of fleet managers use software that automates fleet operations. He said that leaves many operators exposed when input costs rise or geopolitical events disrupt supply chains.

"Fleet managers can't successfully manage these ongoing cost pressures without having proper visibility into all corners of their operations. Industry research shows many fleet managers still lack this visibility, with only 58% using software that automates fleet operations. This lack of visibility becomes a costly blind spot even at the best of times, but especially in times of geopolitical instability. Having greater visibility enables better route planning and more economical fuel usage, leading to less wastage and therefore a greater margin of contingency during times of uncertainty," Olsen said.

Workforce strain

Financial resilience concerns are intersecting with mounting workforce pressures, including driver shortages and an ageing labour force. NatRoad data shows more than 70% of operators expect collapse risk within months, raising questions about continuity of supply for major retail and industrial customers.

Olsen said digital tools can help not only with cost control but also with driver experience at a time when employers are competing for scarce talent.

"Truck Week returns this year with a national focus for the first time, and it's a well-earned celebration of a vital industry that keeps Australia moving. But the pressure on the industry is real. Over 70% of operators fear collapse within the next six months due to rising fuel and operating costs (NatRoads), and an ageing workforce and driver shortages are compounding it. The efficiency case for technology is well understood. Real-time data, route optimisation, smarter fleet management. The operators already doing this are seeing it directly in their cost base. The people case doesn't get the same airtime, but it should. Good drivers don't leave for a different truck. They leave because the job is harder than it should be. Poor planning, constant firefighting, lack of communication. Technology removes that friction and gives drivers a more predictable day and, in a market where everyone is chasing the same people, that matters," Olsen said.

He pointed to demographic data showing a male-dominated workforce and argued that safer, more predictable operations can influence who enters the sector.

"It also opens the door to a wider talent pool. A 2024 survey found that men make up more than 90% of Australian truck drivers. But that's starting to shift. When the job is safer, more predictable and more professionally supported, it becomes more accessible. That's how you start attracting younger workers and more women into an industry that needs them. The businesses that come through this period will be the ones who stopped treating technology as a line item and started using it as the thing that holds the operation together. That's what keeping Australia moving actually looks like," Olsen said.

Safety and compliance

Olsen also linked the economic strain with growing safety and legal obligations under Chain of Responsibility laws. National Road Safety Week has renewed focus on heavy vehicle crashes and the role of schedulers, fleet managers and executives in managing risk.

"Road Safety Week 2026 comes at a critical moment for Australia's transport industry. With 139 lives lost due to heavy vehicle related incidents in the 12 months leading up to February 2026, and truck drivers 13 times more likely to die at work than workers in other industries, the numbers demand more than awareness campaigns. They demand action at an operational level," Olsen said.

He said causes such as fatigue and distraction are measurable risks that operators can address through systems and monitoring, rather than treating them as unavoidable hazards.

"Behind every statistic is an individual, a family, a workplace, and a community permanently affected by tragedy. That is why road safety cannot simply be treated as a compliance experience or annual talking point. It must be embedded into day-to-day operations and decision-making across the entire supply chain," Olsen said.

"Inattention, distraction, fatigue, and speeding account for almost half of all heavy vehicle incidents. These are not freak accidents - they are predictable, measurable, and in most cases, preventable. The technology to address them exists right now. The gap is not capability; it is adoption and accountability," Olsen said.

Olsen drew a distinction between awareness of safety duties and having documented, enforceable systems in place.

"Businesses are aware of their obligations in principle but knowing what is required and having the systems and processes in place to consistently meet it, is an essential difference. That gap is where incidents happen and where liability accumulates," Olsen said.

Chain of Responsibility provisions extend potential liability beyond drivers to schedulers and managers whose decisions influence risk. Enforcement initiatives have also expanded oversight of operator practices.

"What Road Safety Week should be forcing transport leaders to ask is not whether they have a safety policy; it's whether their safety culture is real or just documented. Technology is one of the clearest ways to tell the two apart," Olsen said.

"Australia's Chain of Responsibility (CoR) legislation has fundamentally changed the game. Liability no longer stops at the driver. It sits with the scheduler who set an unrealistic run, the manager who did not act on fatigue alerts, and the business that had the data but did not use it," Olsen said.

He said national enforcement programs and accreditation changes are turning legal expectations into day-to-day consequences for operators.

"The nation-wide Operation Ambit initiative and the inbound Heavy Vehicle Accreditation (HVA) scheme transition are making that accountability real and enforceable. Operators who are still treating compliance as a checkbox exercise are carrying significant legal and reputational risk, whether they know it or not," Olsen said.

"The businesses getting this right are not just avoiding incidents; they are building a demonstrably safer operation that holds up under scrutiny. That is a competitive advantage in a market where enterprise customers are increasingly asking hard questions about their supply chain partners and drivers are in demand," Olsen said.