Innovation in road freight regulation – Australia’s chain of responsibility regulation

Abstract

The movement of freight on roads is important for any economy to function. Efficient movement of freight provides substantial benefits to society. Road freight movement also has negative impact, including accidents, pollution and damage of infrastructure. To limit the negative impact, most governments, regulate road freight movement. The regulation varies from country to country. Some countries focus mostly on the driver, while others focus on the business operator. There have been varied levels of success in regulating road freight movement. In Australia, regulators have come to realise that a different approach to regulation is required as the current regulatory regime had little impact on further reducing the negative effects of the road freight industry. After substantial deliberation, Australia has embarked on a different regulatory regime which covers all parties involved in the road freight supply chain. It is called “Chain of Responsibility” Regulation. This approach is unique and has not been applied by any other country. This conceptual paper discusses the Chain of Responsibility regulation, its origin, implementation and experience to date. It also provides some pointers to other countries wishing to adopt a similar regulatory approach.

To cite: Van Der Westhuizen, J. (2018). Innovation in road freight regulation – Australia’s chain of responsibility regulation. Journal of Management & Administration (2018/2), 191–209. https://hdl.handle.net/10520/EJC-128dd84007