Vision Logo Circle
Vision Logo Circle

Concern Over Food Prices After Trucking Company Collapse

by | Tue, Feb 28 2023

Text size: A- A+

The collapse of a trucking giant is expected to have major supply chain impacts, potentially increasing the cost of frozen and refrigerated goods at major supermarkets.

Scott’s Refrigerated Logistics has voluntarily been placed into the hands of administrators, with 1,500 employees now facing an uncertain future.

The company owns 24 cold storage warehouses across the country, with a fleet of around 500 trucks on the road responsible for supplying all major grocery stores – including Woolworths and IGA.

The collapse of Australia’s largest cold chain refrigeration logistics company comes amid a long running stretch of supply chain disruptions, both nationally and globally.

CEO of Victorian Transport Association, Peter Anderson, is concerned we will now see a further rise in food prices.

“It’s a matter of – well – if there’s greater demand and less capacity, prices are going to go up, there’s no doubt about that,” said Mr Anderson.

“The cost of transport, the cost of getting goods to market is going to have to increase for frozen and chilled goods.”

Coles and ALDI say the impact on customers for now, should be minimal.

The collapse of the trucking company is being blamed on labour shortages, unforeseen weather events and high fuel prices.

KordaMentha has been appointed receivers, and Partner Scott Langdon says they are working to find a new buyer for the company.

“We’ve paid subcontractors overnight, we’ll be paying employees in the next 24 hours as they’re due, and we’re commencing an immediate sale campaign to keep the 1,500 employees employed, and keeping the hot chips on the shelf,” said Mr Langdon.

Scott’s Refrigerated Logistics also supplies Foodbank Australia.