Fall of Australian logistics firm worries supermarket supply chains

Scott’s Refrigerated Logistics, which employs 1,500, has gone into administration

Australia-based Scott’s Refrigerated Logistics has entered receivership after the company was unable to find a buyer. 

The company has 500 trucks and 1,000 trailers on the road, plus 24 warehouses across the country. According to the company, its vehicles travel more than 500,00 km every day.

The receivers are looking for a new buyer for the company which provides refrigerated trucks and warehouse for key businesses including supermarket giants Coles, IGA and Aldi. 

The company was bought by private equity firm Anchorage Capital partners in June 2020 for approximately $75m.

Trade body Road Freight NSW commented that this key company collapse would probably not be the last, resulting in inevitable higher prices for supermarket shoppers. The association’s CEO Simon O’Hara said: “What we’re seeing for the first time is a larger, more significant part of the supply chain going into insolvency. What we’ve been seeing for about the last 12 months is a number of road freight companies and truckies deciding they no longer want to remain in the industry and pulling the pin. It’s symptomatic of what’s been happening in the freight industry and this won’t be the last…. Unfortunately we will see the supply chain affected undoubtedly, given the shortage of new trucks coming into Australia.”

As well as all the supply problems cause by Covid-19, Australia has also been hit by a shortage of the diesel fuel component, AdBlue, as well as generally soaring fuel costs, with the country now reliant on just two refineries, giving little room to increase fuel supplies.

comments powered by Disqus