Transport companies are being forced out of business because their contracts and rates do not cover rising operating costs, the Road Freight Association (RFA) has warned.
RFA chief executive Gavin Kelly raised the concern during an industry webinar hosted by the Transport Forum and the association on Tuesday.
Changes in fuel prices and labour costs could place operators under further financial pressure when contracts were already priced at unsustainable levels, he said.
“Quite often, you will see that transport companies disappear overnight because their contracts and all their rates are unsustainable.”
Ongoing wage negotiations were expected to change the salaries and wages paid to most employees in the sector, adding to the risks facing operators, he said.
Compliance costs were also creating an uneven playing field because some operators were not following the rules.
Compliant operators faced higher costs and risked being pushed out of business by competitors that did not follow the rules, Kelly said.
Fleet operators needed to comply with road traffic legislation, labour laws and the requirements applying to the cargo they transported, he said. Additional legislation could apply to operators moving perishable or refrigerated goods.
Corruption and extortion were also affecting transport businesses, with the RFA receiving multiple complaints every day involving various levels of authority, said Kelly.
He did not provide further details about the complaints during the webinar.
Operators could reduce some operational risks by using services such as pre-clearance and registering as authorised economic operators, he said.
They also needed the technical expertise to select vehicles suited to their cargo and distribute loads correctly across vehicles carrying multiple consignments or serving several destinations.
Driver health raises safety concerns
The mental health of truck drivers has deteriorated in recent years, according to Judith Bester, project lead for the DTSA Trucking Wellness programme under the National Bargaining Council for the Road Freight and Logistics Industry.
Thirty-five per cent of people who answered a Trucking Wellness mental-health question in 2025 rated their wellbeing at one or two out of ten, she said.
The programme regarded ratings of one or two as indicating a risk of suicide, Bester added. She did not specify the number of respondents or how many were truck drivers.
Mental-health support needed to be made available in the workplace and employees needed information about where they could obtain assistance, she said.
A healthy driver was more likely to be alert and focused, reducing the risk of incidents, absenteeism and workplace conflict.
Driver health could also affect vehicle maintenance and fuel costs, according to Bester.
A study conducted by the programme found that healthier drivers were associated with lower vehicle maintenance and fuel costs, she said.
The Trucking Wellness programme recorded about 90 000 health consultations during 2025. Of these, 21 900 involved truck drivers who received primary healthcare at roadside wellness centres, said Bester.
The programme also provides workplace health screening and operates mobile and roadside clinics where drivers can obtain healthcare without spending extended periods away from work.
