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TMX Transform has published new freight benchmarking data showing interstate transport can cost up to 14 times more than local delivery, according to the consultancy's quarterly Across the Network report.
A full B-double load within the same state costs between AUD $535 and AUD $630, while the same load moved to a distant state costs between AUD $3,100 and AUD $7,700. The upper end covers routes such as Brisbane to Adelaide and freight moved by rail to Perth.
Pallet rates showed a similar gap. Metro same-state freight ranged from AUD $21.8 to AUD $26.9 per pallet, compared with AUD $166.9 to AUD $345.9 for distant-state freight.
These rates exclude fuel surcharges, leaving room for further increases as the fuel excise is reimposed.
The figures sit within a broader pattern of rising costs across transport, warehousing and industrial property. Domestic transport operators are passing margin pressure through the supply chain, while in ocean freight, the concern is not only price but service risk as carriers withdraw capacity and favour higher-margin customers.
Construction costs
Warehouse construction costs also rose across every facility type during the quarter. Ambient warehouse construction is now benchmarked at AUD $1,150 to AUD $1,250 per square metre nationally, up from AUD $1,100 to AUD $1,200 previously.
Temperature-controlled facilities were benchmarked at AUD $1,950 to AUD $2,350 per square metre, while freezer facilities were benchmarked at AUD $2,750 to AUD $3,350 per square metre. Concrete, described as the main cost driver, increased from AUD $8 to AUD $12 per cubic metre in April alone.
The property market showed a more mixed pattern. Transaction activity slowed as some occupiers paused decisions, although the report said the caution was driven not only by fuel costs but also by inflation, interest rates, employment costs and land taxes.
Consumer price inflation was cited at 4.6%, with those pressures shaping decisions across occupiers, developers and supply chain operators.
Sydney rents
In Sydney's industrial market, prime-grade net face rents now range from AUD $210 to AUD $500 per square metre. That compares with AUD $250 to AUD $400 in the previous quarter, pushing the bottom end lower and the top end higher.
The report also pointed to emerging pressures in industrial development and logistics planning. Data centres are competing for greenfield land, power infrastructure and labour, which could affect the supply of ready-to-occupy industrial stock.
Other issues included rise-and-fall clauses shifting material cost risk from developers to tenants, diesel price increases complicating interstate fulfilment models, internal approval delays adding to project cost exposure, and fire approval processes creating problems for occupiers building automated facilities.
Justin Fried, Managing Director APAC at TMX Transform, said the current environment required businesses to keep making long-term decisions despite disruption.
"A network decision is a five-to-ten-year strategic capital commitment. The organisations that navigate the current disruptions, while continuing to plan with a long-term lens, will be best positioned to take market share when conditions settle," Fried said.
Charlotte Jordan, Executive Director of Supply Chain at TMX Transform, said businesses should use the period to examine hidden weaknesses in their operations.
"Use this period to genuinely understand your supply chain. Not just the obvious pressure points, but the ones you haven't looked at - supplier concentration, network performance under different cost scenarios, and operational readiness for automation. If you can build that picture now, you are in a far stronger position to stabilise and increase profitability," Jordan said.
TMX said Australian businesses have responded more measuredly to current supply chain disruption than they did during the pandemic, continuing to plan rather than waiting for conditions to ease. The report argued that this approach is shaping both network decisions and property strategy.
Stefanie Frawley, Executive Director of Property at TMX Transform, said rising input costs were already being built into development economics.
"Construction cost increases driven by fuel and materials are being built into the cost of development, and once embedded, those costs do not go backwards. For occupiers looking for quality product, the message is to act now," Frawley said.
Angus Perry, Executive Director of Project Services at TMX Transform, said some clients had avoided extra expense through early planning.
"With proper planning and foresight, you can ride this bump. Where we have sat down with a client, developed a robust plan and executed strategically, we have managed to navigate this period with no additional cost," Perry said.