Deluxe Freight hands over general services to Simon National Carriers, as cost pressures and low freight volumes bite hard
May 27, 2010
Simon National Carriers will take over Deluxe Freight Systems’ general service operations, as high cost pressures and declining freight volumes hit hard.
In a statement on its website, Deluxe says it agreed to Simon’s takeover of its general freight services in NSW, North Queensland and the Northern Territory from May 21.
The company says it will focus on specialised contract services with its existing customer base, which includes Capral and Pacific Brands.
“With freight volumes and revenues falling, costs such as vehicle registrations, insurances, finance, maintenance and wages continue to increase and the ongoing viability of general carriers is very hard to maintain,” Deluxe writes on its website.
“Deluxe Freight Systems has identified these pressures and are (sic) working more closely with a long standing partner, Simon National Carriers.”
Deluxe says its fleet units used for general freight services will be transferred to Simon National Carriers and affected drivers will be offered jobs with the Toowoomba-based company.
“The road freight industry in Australia has seen significant changes over the last 18 months,” Deluxe writes.
“Drops in freight volumes have forced an increase in consolidation of general freight across the industry throughout Australia.”
According to the company, high costs have forced operators to reduce services and cut their margins.
Deluxe says its decision to hand over its services to Simon National Carriers will ensure the quality of service to its general freight customers is maintained.