Trucking rates nowhere to go but up: CTA

OTTAWA, — Not only is the price of diesel fuel adding more digits to the bottom of freight invoices, but other traditional costs are not showing any signs of letting up either, says the Canadian Trucking Alliance’s vice-president.

In a presentation to the Livingston Importer Conference in Chicago last week, Ron Lennox pointed out that besides the obvious impact of fuel costs — which are usually recouped through surcharges — carriers are facing higher costs to comply with increasingly stringent border security measures, increases in insurance premiums, renewed strength of the Canadian currency, and rising equipment costs reflecting the new generation of near zero-emission engines and fuels.

“The importance of the cross-border market is simply too important for most carriers to abandon,” said Lennox. “But at the same time these carriers are faced with significant cost increases that cannot be absorbed, despite hefty competition.

Lennox said that on top of fuel surcharges, it is becoming increasingly prevalent to see border crossing fees, FDA clearance charges, and security surcharges. “Deregulation and competition have driven significant efficiencies in the trucking industry, but there is a limit to what carriers can do on their own,” he said.