Expect higher rates, CTA warns shippers

OTTAWA (May 9, 2001) — Shippers should expect higher freight rates as trucking companies struggle to absorb increased fuel, insurance, and labor costs, warns Canada’s largest trucking industry lobby group.

“After more than a dozen years of deregulation in Canada, carriers have squeezed every ounce of productivity and efficiency out of their operations that they can,” says David Bradley chief executive officer of the Canadian Trucking Alliance, which represents more than 2000 member companies.

“Diesel fuel prices have moderated since the beginning of the year, but remain at or above the average for all of 2000,” says Bradley. “While the warm summer temperatures are likely to bring some short term seasonal stability, the outlook for fall and next winter is worrisome.”

Bradley said new rules designed to reduce diesel engine emissions will also push up trucking costs.

“Stringent North American regulation of truck engine and fuel emissions will put further pressure on fuel prices and equipment costs,” he said.