1 00:00:00,080 --> 00:00:02,560 Speaker 1: Now the boss of freightways is warning there's way too 2 00:00:02,640 --> 00:00:05,640 Speaker 1: much hysteria about rising fuel prices. He says, we're still 3 00:00:05,720 --> 00:00:08,319 Speaker 1: quite away from the heights of the Ukraine War when 4 00:00:08,360 --> 00:00:10,640 Speaker 1: diesel hit three dollars. A lead of the bosses obviously 5 00:00:10,680 --> 00:00:13,720 Speaker 1: Mark tro Here, Hi, Mark, Hi, Heather, how are you? 6 00:00:13,760 --> 00:00:15,360 Speaker 1: I'm well, thank you. So why don't you think it's 7 00:00:15,360 --> 00:00:16,040 Speaker 1: going to be that bad? 8 00:00:17,800 --> 00:00:20,480 Speaker 2: Well, I think it's an involving situation. But I think 9 00:00:20,480 --> 00:00:23,200 Speaker 2: where we way off having to panic about things just yet. 10 00:00:23,280 --> 00:00:26,000 Speaker 2: There's plenty of fuel in the country, there's fuel on 11 00:00:26,079 --> 00:00:28,200 Speaker 2: the way, there's plenty of supply there. I think we're 12 00:00:28,200 --> 00:00:32,440 Speaker 2: in a better position than many other places. There's probably 13 00:00:32,440 --> 00:00:34,400 Speaker 2: other challenges that are a little bit closer for us 14 00:00:34,400 --> 00:00:36,480 Speaker 2: at the moments. On the last week, we've had only 15 00:00:36,680 --> 00:00:41,560 Speaker 2: two interrine ind fairies, two fairies operating over the cook straight. 16 00:00:41,600 --> 00:00:43,760 Speaker 2: That was probably a bigger issue for us late last 17 00:00:43,760 --> 00:00:45,120 Speaker 2: week to worry about than fuel. 18 00:00:45,440 --> 00:00:46,960 Speaker 1: Yeah, I mean, I would agree with you that we 19 00:00:47,040 --> 00:00:49,519 Speaker 1: have some issues here that are quite massive. But are 20 00:00:49,560 --> 00:00:52,599 Speaker 1: you saying that you believe that the fuel price is 21 00:00:52,600 --> 00:00:54,360 Speaker 1: not going to hit the heights that I mean? Some 22 00:00:54,360 --> 00:00:57,160 Speaker 1: people are talking about four dollars twenty two, four dollars. 23 00:00:57,200 --> 00:00:58,360 Speaker 1: You don't think it's going to get there. 24 00:01:00,120 --> 00:01:02,680 Speaker 2: I'm not sure and I don't know. I mean, if 25 00:01:02,680 --> 00:01:05,360 Speaker 2: you looked at the Ukraine situation back in twenty two, 26 00:01:06,319 --> 00:01:09,920 Speaker 2: diesel prices set up around three dollars, and to be honest, 27 00:01:09,959 --> 00:01:13,800 Speaker 2: I don't remember the same level of panic and the 28 00:01:13,800 --> 00:01:17,240 Speaker 2: same amount of news around that back then. So I 29 00:01:17,280 --> 00:01:19,839 Speaker 2: think those things will play out as they do. People 30 00:01:20,040 --> 00:01:21,640 Speaker 2: will have to have a think about how they can 31 00:01:21,680 --> 00:01:25,199 Speaker 2: serve fuel and how they manage and work with them budgets. 32 00:01:25,040 --> 00:01:27,160 Speaker 2: That'll be the same for us as businesses as it 33 00:01:27,200 --> 00:01:31,920 Speaker 2: will for private citizens. But those things haven't happened yet. 34 00:01:31,760 --> 00:01:34,080 Speaker 1: Okay, so what do you and I think The other 35 00:01:34,080 --> 00:01:35,920 Speaker 1: thing that's freaking people out, and I want your take 36 00:01:35,920 --> 00:01:38,920 Speaker 1: on this mark, is that we are sitting here at 37 00:01:38,920 --> 00:01:42,120 Speaker 1: the moment, we haven't even started to feel the possible 38 00:01:42,240 --> 00:01:45,080 Speaker 1: effects of any kind of fuel disruption, right because the 39 00:01:45,080 --> 00:01:48,000 Speaker 1: ships are still they've just landed in Singapore, we've still 40 00:01:48,000 --> 00:01:50,680 Speaker 1: got our ships coming. So it's almost like we're looking 41 00:01:50,760 --> 00:01:53,440 Speaker 1: at a storm that's building and coming for us, and 42 00:01:53,480 --> 00:01:55,920 Speaker 1: we're already sitting above three dollars. A letter in ninety one. 43 00:01:56,080 --> 00:01:59,120 Speaker 1: So is it not right to be slightly worried about 44 00:01:59,120 --> 00:02:00,000 Speaker 1: the lag effect here? 45 00:02:01,720 --> 00:02:03,520 Speaker 2: I'm not sure if people need to be worried, but 46 00:02:03,600 --> 00:02:05,640 Speaker 2: I think they need to be prepared, you know, prepare 47 00:02:05,680 --> 00:02:08,280 Speaker 2: for the worst, hope for the best, and so our 48 00:02:08,360 --> 00:02:12,120 Speaker 2: business again, just like private citizens, we'll start thinking about 49 00:02:12,400 --> 00:02:14,080 Speaker 2: what you need to do if you need to use 50 00:02:14,080 --> 00:02:16,480 Speaker 2: a bit less fuel. I've just driven thirty five minutes 51 00:02:16,520 --> 00:02:18,639 Speaker 2: back in the traffic and I reckon ninety percent of 52 00:02:18,680 --> 00:02:21,400 Speaker 2: the vehicle's only had one person in them. You know, 53 00:02:21,400 --> 00:02:23,280 Speaker 2: there's a whole lot of things that we can all 54 00:02:23,320 --> 00:02:26,000 Speaker 2: do and that we would do in our business if 55 00:02:26,040 --> 00:02:28,520 Speaker 2: we had to minimize the amount of fuel we were 56 00:02:28,600 --> 00:02:30,800 Speaker 2: using or reduce the amount of fuel we were using, 57 00:02:30,800 --> 00:02:31,720 Speaker 2: and there for the cost. 58 00:02:31,919 --> 00:02:34,040 Speaker 1: Yeah, some of the things though got I feel like 59 00:02:34,080 --> 00:02:36,680 Speaker 1: I'm but let's put your argument through its paces though. 60 00:02:37,919 --> 00:02:39,600 Speaker 1: One of the things, I mean, we can talk about 61 00:02:39,600 --> 00:02:42,280 Speaker 1: potentially cutting down our fuel use, and that may be possible, 62 00:02:42,280 --> 00:02:44,280 Speaker 1: work from home, car pool, do that kind of thing. 63 00:02:44,320 --> 00:02:46,639 Speaker 1: But you can't eat less bread and you can't eat 64 00:02:46,680 --> 00:02:49,320 Speaker 1: less meat right without going hungry. And that's all going 65 00:02:49,360 --> 00:02:50,120 Speaker 1: to go up, isn't it. 66 00:02:51,760 --> 00:02:54,519 Speaker 2: Yet? There will be an impact in terms of inflation. 67 00:02:54,800 --> 00:02:59,080 Speaker 2: So most transport businesses will be lifting fuel adjustment factors 68 00:02:59,120 --> 00:03:02,239 Speaker 2: or fuel search that they have through their businesses. So 69 00:03:02,280 --> 00:03:04,600 Speaker 2: that type of thing will happen just as it did 70 00:03:04,680 --> 00:03:06,800 Speaker 2: back in twenty twenty two. Yet they will happen for 71 00:03:06,840 --> 00:03:10,040 Speaker 2: a period that sort of thing. That we operate a 72 00:03:10,120 --> 00:03:12,280 Speaker 2: children frozen food business, and a lot of the food 73 00:03:12,280 --> 00:03:15,639 Speaker 2: we handle has been higher value food, and what we've 74 00:03:15,639 --> 00:03:18,120 Speaker 2: seen through the recession is that people have consumed less 75 00:03:18,120 --> 00:03:21,080 Speaker 2: of that higher value food and shifted to cheaper food. 76 00:03:21,160 --> 00:03:24,040 Speaker 2: So I think those types of things happen all the 77 00:03:24,120 --> 00:03:28,480 Speaker 2: time in relation to all sorts of impacts. They fuel prices, 78 00:03:28,600 --> 00:03:32,120 Speaker 2: be they recessions, be it COVID, so on and so forth. 79 00:03:32,600 --> 00:03:34,640 Speaker 1: Okay, so what is it that your business is watching, Like, 80 00:03:34,680 --> 00:03:36,560 Speaker 1: what are the key signs for you that things have 81 00:03:36,640 --> 00:03:39,320 Speaker 1: gone from being manageable to not. 82 00:03:41,080 --> 00:03:43,680 Speaker 2: Well? I think for us things are still manageable. I mean, 83 00:03:43,720 --> 00:03:45,480 Speaker 2: we'll keep a close eye on the amount of fuel 84 00:03:45,480 --> 00:03:47,760 Speaker 2: in the country and on the way here. There's plenty 85 00:03:47,760 --> 00:03:49,920 Speaker 2: of lead indicators for that, so we're going to have 86 00:03:50,000 --> 00:03:53,920 Speaker 2: plenty of notice if there are genuinely short fuel shortages. 87 00:03:53,960 --> 00:03:57,360 Speaker 2: We use jet fuel for the aircraft we run. We 88 00:03:57,480 --> 00:03:59,200 Speaker 2: use diesel, and we use a little bit of petrol 89 00:03:59,440 --> 00:04:02,040 Speaker 2: in some va but we will have plenty of notice 90 00:04:02,040 --> 00:04:03,960 Speaker 2: of that. We're going to see that coming. There's plenty 91 00:04:04,000 --> 00:04:06,800 Speaker 2: of things we can do that might sacrifice a little 92 00:04:06,800 --> 00:04:09,600 Speaker 2: bit of timeliness to be a bit more efficient with fuel. 93 00:04:10,280 --> 00:04:13,760 Speaker 2: If we're talking about twenty percent of fuel supply being 94 00:04:13,800 --> 00:04:17,000 Speaker 2: impacted through the Strait, and if we use that as 95 00:04:17,000 --> 00:04:19,400 Speaker 2: a proxy for what we have to adjust for, I 96 00:04:19,440 --> 00:04:21,240 Speaker 2: don't know. I think if you went back through COVID 97 00:04:21,240 --> 00:04:22,800 Speaker 2: you'd find New Zealand used a hell of a lot 98 00:04:22,920 --> 00:04:24,239 Speaker 2: less fuel during that period. 99 00:04:24,360 --> 00:04:27,560 Speaker 1: Yeah, fair point. How are you feeling about the impact 100 00:04:27,560 --> 00:04:30,279 Speaker 1: this might have on GDP? Because mate, I feel like 101 00:04:30,960 --> 00:04:33,680 Speaker 1: we've just come through COVID, that's been a frasal. Now 102 00:04:33,680 --> 00:04:35,760 Speaker 1: we've gone through the recession that Adrian All put us 103 00:04:35,800 --> 00:04:37,839 Speaker 1: in and we're just coming right and now this is 104 00:04:37,920 --> 00:04:39,600 Speaker 1: going on. So I don't know, what do you think 105 00:04:39,640 --> 00:04:40,839 Speaker 1: this is going to do to the economy? 106 00:04:41,960 --> 00:04:43,839 Speaker 2: Well, look, it could put a little then. I'm not 107 00:04:43,880 --> 00:04:46,440 Speaker 2: an economist by any means, but I've been in this 108 00:04:46,480 --> 00:04:48,760 Speaker 2: business a long time and seeing plenty of impacts. I've 109 00:04:48,760 --> 00:04:52,680 Speaker 2: seen probably three recessions go through. Look, I think the 110 00:04:52,760 --> 00:04:56,840 Speaker 2: underlying fundamentals are okay. We were starting to see customers 111 00:04:56,880 --> 00:04:59,360 Speaker 2: trade up up to this point. It's a little early 112 00:04:59,360 --> 00:05:02,120 Speaker 2: to tell whether they has changed yet. But look, I'm 113 00:05:02,160 --> 00:05:06,560 Speaker 2: reasonably optimistic that we'll come through this. If there's a 114 00:05:06,560 --> 00:05:08,600 Speaker 2: little hit, everyone wears a little hit. If there's a 115 00:05:08,640 --> 00:05:11,680 Speaker 2: bit of inflation, you know, maybe that's temporary, depending on 116 00:05:11,720 --> 00:05:13,960 Speaker 2: how long this goes for. But I think I think 117 00:05:14,160 --> 00:05:16,040 Speaker 2: part of our funk over here, and I spend quite 118 00:05:16,040 --> 00:05:18,800 Speaker 2: a bit of time in Australia, we sometimes talk ourselves 119 00:05:18,880 --> 00:05:23,320 Speaker 2: into a funk, and Australia is facing largely similar conditions 120 00:05:23,400 --> 00:05:26,279 Speaker 2: higher levels of inflation. But jeez, most of the customers 121 00:05:26,320 --> 00:05:28,640 Speaker 2: and operators over there are talking pretty positively. 122 00:05:29,040 --> 00:05:30,880 Speaker 1: Yeah, it's a fair point you make. Mark. Thank you 123 00:05:30,880 --> 00:05:33,080 Speaker 1: as always, really appreciate talking to you. Mark trow here, 124 00:05:33,480 --> 00:05:37,440 Speaker 1: who's the Freightways chief executive. For more from Heather Duplessye 125 00:05:37,440 --> 00:05:40,200 Speaker 1: Alan Drive, listen live to news Talks. It'd be from 126 00:05:40,320 --> 00:05:43,920 Speaker 1: four pm weekdays, or follow the podcast on iHeartRadio.