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Transport sector liquidations soar

New credit report also shows improving vehicle loan arrears as it identifies hope of more positive economic outlook.
Posted on 03 October, 2025
Transport sector liquidations soar
Photo: Freepik

The number of transportation companies placed into liquidation in the past year has increased 52 per cent from the previous 12 months, according to a new report from Centrix.

The credit bureau says 154 firms from the sector suffered such a fate, with road freight firms most affected. 

Its September credit indicator notes the transportation industry is made up of more than 17,000 registered companies and accounts for 2.3 per cent of all registered businesses. 

“These figures highlight ongoing challenges for the road freight industry and underscore the need for further government investment in infrastructure to support sector growth,” the report adds.

Other businesses covered by the transportation category include road passenger transport, postal and courier pick-up and delivery services, and transport support services.

Centrix says company liquidations overall have risen 26 per cent over the past year, largely due to increased enforcement by Inland Revenue, which has intensified tax debt collection after a more lenient approach during the Covid years. 

Inland Revenue now initiates nearly 70 per cent of all liquidation applications, up from 30-40 per cent in 2020/21. 

Construction remains the leading industry for company liquidations, with its 761 firms liquidated in the past year representing a 38 per cent increase.

Vehicle finance

The Centrix report did bring some good news for the automotive industry as arrears on vehicle loans improved to 5.1 per cent of active credit accounts in August, down from 5.9 per cent in the same month a year ago.

The shift came at the same time credit card arrears fell to their lowest level since comprehensive credit reporting began over a decade ago, improving from 15 per cent to 3.7 per cent.

The credit bureau says mortgage arrears also improved to 1.36 per cent in August, with 20,900 home loans past due, which was 300 fewer than the previous month.

Consumer credit demand rose 5.6 per cent year-on-year, driven by strong growth in personal loan applications.

Helping drive the increase was new non-mortgage lending, which includes vehicle loans, climbing 11.4 per cent.

Monika Lacey, Centrix’s chief operating officer, says the latest credit trends offer a more positive outlook for the economy. 

“Consumers reported in arrears fell to 12.09 per cent of the credit-active population in August, 1.8 per cent lower than a year ago, with the number of people behind on payments declining to 468,000 – down 12,000 from July,” she adds.

“Business conditions are also showing signs of improvement, even as company liquidations remain elevated – up 26 per cent year-on-year.

“While challenges remain and the economy is still operating below potential, the improvement in arrears, strengthening mortgage performance and rising credit demand all suggest consumers and businesses could be beginning to regain confidence, offering some hope of a more positive outlook for New Zealand’s credit markets.”