No relief yet for Queensland freight rates

Staff WriterApril 7, 2006, 12:00 amApril 7, 2006

Freight rates in north Queensland are still up to 50% higher than before Cyclone Larry devastated the far north and north Queensland coast three weeks ago, Queensland Trucking Association executive director Peter Garske said this morning (Friday, April 7). Cyclone Larry left thousands of homes without power, damaged buildings and destroyed agriculture across 12,500 sq km in and around Innisfail. Winds of up to 290 km&#47h affected 90%-95% of Australia’s banana plantations. Queensland’s peak sugar industry group, Canegrowers, has estimated a typical loss of more than 40% of sugar in the Babinda and Innisfail areas, with up to 80% of some farmers’ crops lost. The Federal Government this week announced tax-free grants and wage subsidies of up to $25,000 for some of those affected. Some businesses will receive a fortnightly payment of $400 for every full-time employee affected by the cyclone. Canegrowers general manager Ian Ballantyne welcomed the federal and state governments’ &#8220swift response&#8221 so soon after the cyclone. But it is still uncertain how Queensland’s truck industry will be compensated after losing the bulk of its southbound freight. Mr Garske told Lloyd’s List DCN that very little had changed in terms of relief to the freight industry since the cyclone hit. Freight rates had increased by as much as 50% to compensate for the loss of bananas and other goods heading south, Mr Garske said. He said he was not aware of any decision to provide relief to offset increased freight rates. &#8220I’m not unhappy with the communications I’ve had with government, albeit that it has not produced any immediate decision which is going to provide fundamental relief with respect to freight rates,&#8221 Mr Garske said. &#8220I’m satisfied that freight rates and the impact of increased freight rates are very much at the top of the mind for government.&#8221 He said it would be better to subsidise those paying to bring goods into the cyclone-affected area, rather than truck companies. &#8220Most of the major companies I have spoken to have increased their rates by between 40 and 50%,&#8221 he said. Mr Garske said he hoped to continue the &#8220fruitful discussions&#8221 with the state and federal governments over the coming weeks.