Rising fuel costs and tightening supply are creating new pressures across the visual media industry, prompting businesses to reassess logistics, workforce mobility, and cost recovery strategies.
Australia is currently experiencing a fuel supply strain and higher prices at the bowser, and in response, the Visual Media Association (VMA) has issued guidance to help members navigate potential disruptions, manage risk, and prepare for a more uncertain operating environment.
Charles Watson, GM – IR, Policy and Governance for the VMA, tells Print21 that for the print and visual media industry, the immediate implications of any rationing or sustained supply disruption would be higher freight costs and delays in delivery.
“In practical terms, regional service delivery would come under pressure first. Additionally, and depending on the geographic location, there could be increased difficulties for employees who rely on vehicles to attend work,” Watson explains.
“Based on current information fuel rationing is not something we would describe as imminent, but it’s certainly no longer a theoretical risk.
“The current government position is that national supply remains secure. However, the fact that emergency stock settings have been adjusted, and that there are localised shortages in regional areas – particularly in relation to diesel, means that businesses should be treating this as a live contingency issue rather than a remote scenario.”
Currently Australia has approximately 30 days of fuel reserves, while New Zealand has approximately 60 days. However, various rural and regional centres are already experiencing slowed supplies of fuel.
In an attempt to overcome the issue, the Australian government has determined to release part of the national fuel reserve into the supply chain.
Watson says that although we are not yet at a critical point, if fuel supply into Australia worsens, then there are a number of risk and exposure issues for members to consider.
These include:
- Fuel rationing (like that experienced in the 1970s) could occur.
- Transportation of goods may be affected, including cost increases, so it is suggested you speak to your transport companies to discuss any issues.
- If government does declare a fuel emergency, this may affect your employees. Watson advises you should consider reviewing your workforces reliance on fuel to attend work, and what contingencies could be implemented (such as car-pooling or similar).
- Consider what approach to take if employees are unable to get to work due to a fuel shortage.
- Consider your companies fuel usage, such as travelling sales people and deliveries, and what approach you would take to ameliorate related issues.
“Within our industry, businesses that would be most exposed are likely to be those with a regional footprint. That is where regulators are already focussing their attention, particularly in relation to diesel availability,” Watson adds.
“Any industry member with a regional freight dependency, customer delivery obligations are likely to feel the effects earlier than metro operators.
“Hopefully we will return to business as usual soon. However, from a longer-term perspective, the current situation may give businesses pause for thought in relation to delivery route optimisation. This issue also reinforces the broader strategic case for sovereign capability in manufacturing and supply.”
To assist members, and if current fuel supply conditions worsen, the VMA is already proactively developing a practical contingency plan framework containing various factors and considerations that may be implemented in your business.
“The VMA is treating this as an active operational risk issue for members. The intention is to finalise and release our contingency plan framework shortly, with timing to be guided by how the supply situation and government response evolves over the coming days,” Watson says.
“Given the pace of developments, it is important that the framework is practical and current when issued.
“The framework will focus on practical business contingency measures across workforce attendance, freight and supplier engagement, customer communications, fuel priority decision making, and when to trigger related decisions.”
The contingency plan framework will be distributed to members in the coming period depending upon status of the issue and government responses to the issue.