Isuzu and the Future of Australian Trucking

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Trucking contributes to 79.8% of all Australian non-bulk freight
Can Isuzu keep trucking in the age of sustainability? The company's Australian branch has released a report about preparing for a cleaner greener future

According to studies conducted by the Massachusetts Institute of Technology Supply Chains Initiative, freight transportation contributes approximately 8% of all greenhouse gas emissions globally. Trucks, tasked with ferrying cargo from place to place, undoubtedly figure prominently in that statistic.

So, trucking is under pressure to change. As companies around the world scramble to reach net zero by 2050, trucking will be no exception. Technological advancements, environmental regulations and operational efficiency are the orders of the day, especially when freight companies want to maintain a competitive edge.

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Isuzu and the state of Australian trucking

Isuzu Australia, a prominent Australian truck brand, has made clear its commitment to staying ahead in the industry with the release of its remarkable ‘Future of Trucking Report’. This dossier delves into the latest industry trends and paves the way for the company to adapt to the ever-changing demands of Australian trucking.

As one of the world's largest nations, Australian truckers often drive monumental distances to deliver goods. The road from Perth to Sydney (two of the country's major cities), for instance, is almost 4,000km in length and would take almost two days of non-stop driving to complete. So, it's safe to say that trucking in Australia has unique conditions.

Isuzu's report hammers home the importance of understanding customer behaviour, identifying this as a crucial strategy for the future. It seeks to capture the various factors influencing Australian truck buyers.

Craig White, the Head of Sales at Isuzu Australia, explains: “Right or wrong, there’s genuine value for certain parties in understanding the data on who’s buying what next and why they are making those decisions.

“Perhaps most critically though, it's about applying this market knowledge to develop and specify products that will lead to the best ‘whole-of-life’ equation for the consumer - ensuring the right solution is applied in the right area, at the right time and for the right result.”

Craig White, Head of Sales, Isuzu Australia

Insights from Isuzu's 'Future of Trucking Report'

The most recent edition of the Future of Trucking Report, provides exclusive insights into the industry’s current state, tracking changes across the road transport sector. The report casts light on business sentiment, procurement processes, safety and technology, electric vehicles and truck maintenance. It encapsulates the views of over 1,300 road transport survey respondents.

The report also looks back on previous data to illuminate unfolding and consistent trends. For one thing, it highlights how the pandemic catalysed significant transformations within the sector. It notes certain continuities such as the average age of Australia's truck fleet, which stands at 14.4 years, pointing to rising environmental concerns aligned with safety standards, fuel efficiency and emissions.

Australia continues to trail behind the US and Europe in reducing emissions and congestion because regulatory changes are not keeping pace with industrial shifts.

Interest in pre-built trucks (ready-to-drive trucks, designed for specific industry needs) remains strong among retail and fleet truck buyers, with a considerable 71% favouring this option. Businesses and fleets have identified varying challenges; 41% of businesses pointed to "tighter profit margins", while 49% of fleet respondents cited "fuel costs" as significant hurdles.

Environmental sustainability is now a key driver in Australian truck procurement, with an overwhelming 91% of respondents considering a zero-emission strategy. That's a significant development, but how can vehicles designed for such long distances be decarbonised?

The Future of Trucking Report - The Way Forward 2024

Issues with Australian freight

In 2023, Rowan Moorey from Beyond Zero Emissions, an independent environmental think tank, discussed the specifics of Australian goods transportation.

He bemoaned that, whilst train infrastructure exists across the Australian outback and trains can be more efficient at moving goods than trucks, “it’s unfortunate that Australia carries so much freight via emissions-intensive transport”.

The fact is that a great deal of Australia's trains are still powered by diesel, so changes need to be made to both the rail and road freight sectors. Groups have called for stronger policy from the Australian government to accelerate the scaling up of electric trucks, and there is hope that Isuzu can be a part of that decarbonised trucking solution.

Many of Australia's trains still run on diesel

Looking toward a sustainable future

The future of the industry seems promising, with electric vehicles expected to play a pivotal role over the next 10-15 years. Charging (especially for long-haul routes) will be a major hurdle, but NewVolt are making progress on this front, with a series of enhanced, electrified truck stops along the country's main East Coast freight route.

The immediate five years will also likely see increased adoption of new technologies such as blind spot monitoring, electronic stability control, and lane keep assist, enhancing vehicle safety and operation.

With these advancements, Isuzu Australia anticipates more substantial growth and innovation within the industry, driven by technological advancements and a shift towards electric vehicles.

Looking to the future, Craig says: "One thing is for certain, our most recent data paints the picture of an extremely smart, business-savvy Australian truck buyer who is looking for a transport partner, not just a retailer of goods."

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