<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian trucking companies are at breaking point, with one in 12 forced to close over past months, a new report warns.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The triply whammy of rising fuel and labour costs, stubbornly high interest rates and fierce competition has left many freight operators struggling to remain solvent, the research by CreditorWatch found.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Smaller and family-run carriers, many of which serve critical industries on regional and interstate routes, are particularly vulnerable because they lack the cash reserves or negotiating leverage of larger logistics companies.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/uber-driver-pay-ride-transparency-petition-exclusive/cd63986a-6e37-4264-82c3-50560343ab85" rel="" target="_blank" title="The Aussies who are forced to accept jobs with no clue what they'll be paid"><strong><span>The Aussies who are forced to accept jobs with no clue what they'll be paid</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The road transport industry is also facing other big headwinds.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A shortage of drivers is pushing up labour costs as a lack of younger drivers taking up the job leaves companies with an ageing workforce.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The price of second-hand trucks, which jumped during the pandemic, has now fallen dramatically by more than 60 per cent.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/trucking-companies-facing-tough-times/3c45419a-4b63-4835-8065-d3b641aaa4b3" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Added to these are volatile fuel prices, higher insurance premiums and rentals and the demands of environmental compliance.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CreditorWatch data shows the closure rate for road transport businesses during the past 12 months was 8.46 per cent, or one in 12 businesses.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This was an increase of 40 per cent year-on-year and a 26 per cent rise since this January.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The closure rate for transport companies has rocketed and now rivals that of the hospitality sector, traditionally one of Australia's most failure-prone industries.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There are some bright prospects for trucking firms, particularly in the mining and commodities sectors.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But the benefits are unlikely to compensate for the industry's current dire condition, according to CreditorWatch chief economist Ivan Colhoun.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Elevated cost bases, stretched balance sheets, and soft freight demand from retail and manufacturing mean insolvency pressures are set to remain high through 2026," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple App Store</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a><strong><em><span>.</span></em></strong></div></div>