A critical compliance framework for every link in the freight supply chain
By Brad Pace

What Is the Chain of Responsibility?

Australia’s Chain of Responsibility (CoR) laws are a cornerstone of national transport safety and compliance. They recognise that every party who influences a heavy vehicle’s operation shares responsibility for ensuring road transport is conducted safely and lawfully — not just the driver.

These laws are embedded within the Heavy Vehicle National Law (HVNL), which applies across most Australian states and territories (with some variations in Western Australia and the Northern Territory). The aim is simple: to ensure that commercial pressures, poor systems or unrealistic schedules do not lead to unsafe practices on our roads.

Why CoR Matters

The CoR regime exists because safety and compliance are not achieved by the driver alone. Every decision made upstream — from scheduling and loading through to contracting and payment terms — can directly influence road behaviour and risk.

For businesses that buy, sell, move or receive goods by road, CoR compliance is a legal obligation and a reputational safeguard. Breaches can attract significant penalties, including fines of up to hundreds of thousands of dollars, and in serious cases, corporate or individual prosecution.

Who Is in the Chain?

Under CoR laws, anyone who can control or influence transport activities is part of the chain. Key parties include:

• Employers, operators and prime contractors – those who control or direct the transport task
• Schedulers and dispatchers – those who plan vehicle movements or set delivery windows
• Loaders and packers – those who prepare and secure goods for transport
• Consignors and consignees – those who send or receive goods
• Drivers – those who ultimately operate the vehicle

Each of these parties must ensure their actions (or inactions) do not cause or encourage a breach of the HVNL, such as overloading, speeding, or fatigue-related offences.

What CoR Covers

The Heavy Vehicle National Law identifies several key compliance areas where CoR applies:

1. Mass, Dimension and Load Restraint

Everyone in the chain must ensure vehicles are not overloaded, that loads are properly secured, and that dimension limits are not exceeded.

2. Fatigue Management

Schedulers, employers and contractors must ensure work and rest hours comply with fatigue laws, and that drivers are not pressured to drive when tired.

3. Speed Compliance

Businesses must avoid practices that directly or indirectly encourage speeding — such as unrealistic delivery times or bonus incentives.

4. Vehicle Maintenance and Roadworthiness

Operators and schedulers must maintain vehicles to required standards and prevent unsafe vehicles from being used.

The Duty of Due Diligence

The 2018 amendments to the HVNL introduced a “primary duty” — a broad legal obligation requiring all parties in the chain to ensure, so far as is reasonably practicable, the safety of their transport activities.

This means businesses must not only avoid breaches, but also proactively manage risks. The due diligence obligation applies to both companies and their executives, who must:

1. Understand the risks associated with their transport operations
2. Implement appropriate policies, systems and controls
3. Monitor performance and verify compliance
4. Foster a culture of safety and accountability

Failure to take these steps can lead to severe penalties, even if no accident occurs.

What CoR Compliance Looks Like in Practice

Effective CoR compliance requires an integrated management approach across all logistics operations. Leading companies adopt systems and documentation that demonstrate:

• Clear roles and responsibilities across the chain
• Documented policies and procedures covering loading, scheduling, fatigue, and maintenance
• Regular training for staff and subcontractors
• Effective monitoring and recordkeeping (e.g. GPS, telematics, logbooks, maintenance records)
• Incident reporting and corrective action processes
• Contract clauses and audits to ensure suppliers and carriers also comply

These measures are not just about avoiding penalties — they are good business practice, enhancing safety, reliability and trust within the supply chain.

Common Compliance Risks

Even well-intentioned businesses can face exposure through everyday decisions, including:

• Tight delivery windows that make lawful compliance impossible
• Poor communication between warehouse, scheduler and driver
• Use of subcontractors without proper vetting or monitoring
• Incentive structures that reward unsafe driving behaviours
• Incomplete records or inadequate fatigue management systems

Addressing these risks requires collaboration, training, and clear expectations across all stakeholders.

The Business Case for Compliance

For supply chain leaders, CoR compliance is more than a legal necessity — it’s an enabler of operational integrity and customer confidence.

• Reduced risk of incidents, fines and legal exposure
• Improved safety performance and driver retention
• Enhanced reputation with customers and regulators
• Better data visibility across logistics operations
• Alignment with ESG and sustainability commitments

How Conduit Consulting Can Help

At Conduit Consulting, we help businesses embed safety, compliance and efficiency across their supply chain operations. Our team can assist with:

• CoR compliance reviews and risk assessments
• Policy and procedure development tailored to your logistics network
• Training and awareness programs for employees and contractors
• Contract and supplier management frameworks
• Integration of CoR into broader governance and sustainability systems

By taking a proactive approach to Chain of Responsibility, organisations can move beyond compliance to build safer, more resilient, and more efficient supply chains.

Contact Us

For advice or support in strengthening your Chain of Responsibility systems,
visit www.conduitconsulting.com.au or contact Brad Pace.