Australian Fuel’s Tyranny of Distance
- 23 February 2018
Australians are used to vast remoteness impacting their lives. This includes the distance between major capital cities, how long it takes for mail-order items to arrive from overseas, or even the time it takes to go to your neighbour’s house when you live in the outback. We live in a vast nation of incredible scope and wonder, ruled in many ways by the “tyranny of distance”. The term was coined by Australian historian Geoffrey Blainey, and it refers to how, even though Australia has strong cultural ties to other countries, its position on the globe puts it in stark isolation.
Australia At A Distance
This impacts how the country trades with others in nearly every industry. Australia’s share of the export markets is directly influenced by the cost of transporting goods around and out of the country. Some commodities are more affected than others, as they cost nearly as much to transport as they are initially worth, while others (such as Gold) are minimally impacted due to their high value. Transporting large quantities of any material, whether by sea, land or air, is still an expensive proposition. The remoteness of many mining sites meant that even getting commodities to the port was a significant cost factor.
Export Markets Without Boundaries
Recent research has shown that Australia’s share of export markets would dramatically increase if distance was removed from pricing considerations. Coal, where Australia has 27.75% of the export market, could see an increase to 46.58% if every country on the planet were equally far apart from each other. Similarly, Australia’s portion of Gas exports would quadruple from 3.18% to 12.72% which would represent a huge boom for that market.
Hence, there is a keen interest in reducing sending costs through more efficient fuel supply, smarter transport network integration or finding closer markets to sell to such as Asia. When you consider that together, coal, iron and gas account for 58 percent of total export revenue already, these are important problems to solve.
Looking To Growth
Agriculture is one industry that has used the tyranny of distance to establish an advantage. With our relatively low population density and huge open spaces, Australia easily afforded itself a growing agriculture market with key exports such as wool and beef turning into multi-billion-dollar industries.
There has been an increase in service-orientated industries, but a large number of businesses in Australia are still in the construction, mining, manufacturer or agriculture – all sectors that rely on quality bulk diesel fuel.
The tyranny of distance is a problem keenly felt in Australia by bulk fuel suppliers and the many companies they service every day. Bulk diesel fuel delivery is needed across the country to keep most businesses running in adverse or remote locations. Companies rely on bulk diesel fuel suppliers such as Bulk Fuel Australia to maintain a steady supply of reliable, quality bulk diesel fuel across their supply network.
Talk to Bulk Fuel Australia today to see how we can bring you closer to your customers through reliable, high-quality bulk diesel fuel delivery.