Supply Chain Report - Logistics Association of Australia

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S u p p l y C h a i n R e p o r t 2 0 1 0 Labour Cost • Labour cost in the Transport and Storage sector increased by 3.2% in 2009-10. • The rate of increase was similar to the country’s average rise across all sectors of 3.1%. • The 2009-10 annual increase of labour cost in Transport and Storage is the smallest increase in the past 5 years. Change of Labour Price Index (All Sectors vs. Transport and Storage) Percentage Change of Labour Price Index for All Sectors and Transport Sector 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% All Sectors Transport 0.5% 0.0% 2000/ 2001 All Sectors Transport Source: ABS [30] 3.7% 3.2% 2001/ 2002 3.2% 2.4% 2002/ 2003 3.5% 3.3% 2003/ 2004 3.5% 3.1% 2004/ 2005 4.1% 3.2% 2005/ 2006 4.2% 4.3% 2006/ 2007 4.0% 4.1% 2007/ 2008 4.3% 3.9% 2008/ 2009 3.7% 4.4% 2009/ 2010 3.1% 3.2% Fuel Cost • The strengthening sign of economic recovery has gradually added the pressure on fuel prices. 200.0 Cents Average Monthly Fuel Price (Unleaded and Diesel) July 2001 to June 2010 • It is expected that the average fuel price will trend upwards and remain volatile. The industry should expect to respond to the impact of an unprecedented rise and fall of fuel prices. • The strength of the Australian dollar plays a role in limiting petrol price increase. 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 Diesel Unleaded 20.0 0.0 Period Source: AAA Jul -01 Jan -02 Jul -02 Jan -03 Jul -03 Jan -04 Jul -04 Jan -05 Jul -05 Jan -06 Jul -06 Jan -07 Jul -07 Jan -08 Jul -08 Jan -09 Jul -09 Jan -10 Jul -10 Industrial Rental Cost • During the economic turmoil of 2008-2009, we saw overall demand soften in almost all areas. • Average net face rents for industrial markets remained stable or improved slightly. • The future of industrial rental costs is expected to stabilise given a positive economic condition. Area Perth Core North, East, South Brisbane Trade Coast Northside Southside/Outer South West Yatala Industrial Market Indicators (2009-2010) Rent per Sqm Prime Secondary $90-110 $80-100 $115-125 $110-120 $110-115 $110-115 $80-100 $70-90 $80-110 $75-95 $75-105 $70-100 Change of Rent from last period Remained steady after a slight decline in 2008-09 Remained steady or slightly improve in some areas after a moderate decline in 2008-09 Forecast Rent (6months) Adelaide Inner area Outer Area $100-160 $60-100 $50-100 $35-65 Stable slightly increase Gold Coast/Northern NSW $90-110 $80-100 Moderately declined Sydney North South West/South West $160-185 $130-150 $95-135 $110-150 $80-110 $70-90 Remained steady after a slight decline in 2008-09 Melbourne Fringe East/South East West North $130-150 $65-85 $65-70 $65-75 $75-95 $40-70 $42-47 $55-65 Remained steady or slightly improve in some areas after a moderate decline in 2008-09 Source: Colliers International [22,23,24,25,26,27] www.laa.asn.au 14
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 S u p p l y C h a i n R e p o r t 2 0 1 0 Section B: Market Update An Update on Climate Change Business Response to the Climate Change Issue • Australian federal and state governments have been working on policy and legislation to reduce greenhouse gas emissions since 2002. • At present, the direction of any major legislation is unclear after the government decided to defer the introduction of the Emission Trading Scheme (ETS) until 2013. • Despite the uncertainty of government speed and directions around climate change policy and legislation, global businesses continue to put climate change initiatives on top of their agenda according to the surveys conducted by both Ernst & Young and PwC [36,32]. Latest Update on Australia’a Greenhouse Gas Emission Level Australia’s National Greenhouse Gas Inventory Category Annual Emissions through to March quarter (MillionTon CO2) % change in annual emissions March quarter 2008 March quarter 2009 National Inventory Energy: Electricity Energy: Stationary energy Energy: Transport Energy: Fugitive emissions Industrial processes Waster Agriculture National Inventory Total 200 94 80 38 31 15 90 548 201 94 80 40 31 15 91 552 0.80% 0.20% -0.50% 5.10% -0.40% 0.60% 0.50% 0.70% Source: Departmant of Climate Change [31] • This section highlights the latest change in Australian Greenhouse Gas Inventory, and reports the current progress against the target and updates of some of the industryrelated initiatives. National Greenhouse Gas Emission Level • In the 12 months ending March 2010, Australia’s greenhouse gas emissions declined slightly to approximately 542 million tonnes, or about a 1 per cent reduction from the previous year. Greenhouse Gas Emission Reduction Target Against the Target • The 532 million tonnes emission recorded in 2010 is a 1.4% decrease from the peak of 549 million tonnes in 2008. • When compared to 2000, the emission level has increased approximately 9 per cent. • Over ten years, the government scheme aims to reduce between 5 to 15% from emission levels recorded in 2000. Million Ton CO2 600 500 400 300 200 100 0 Australia’s Greenhouse Gas Emission Target GDP ($m) Minimum Reduction Target 5% of 2000 level Ambitious Target, 25% reduction from 2000 level Year • The government also plans to commit to a more ambitious target of 25% reduction if the 450 parts per million CO 2 target is endorsed by global members. Source: Departmant of Climate Change [31] www.laa.asn.au 15
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