With no relief on fuel prices in sight, CTA warns of more surcharges

TORONTO (June 26, 2000) — The Canadian Trucking Alliance warned shippers to expect further fuel surcharges and/or general rate increases despite an agreement last week to increase oil production among the Organization of Petroleum Exporting Countries (OPEC).

CTA chief executive officer David Bradley said OPEC’s decision to boost crude oil production to 25.4 million barrels per day should have little impact on fuel prices. Since the beginning of May rack prices for diesel have risen by 6%, Bradley said, and are now close to the record levels experienced in February of this year.

“In addition to the impact of high crude oil prices, a persistent supply-demand imbalance in the North American diesel fuel market will continue to place upward pressure on diesel prices,” he said. “This, combined with other costs, such as those associated with the qualified driver shortage, and potential changes to the US hours of service regulations, will have to be offset.”

“The only immediate solution is an adjustment in freight prices, either through fuel surcharges, or rate increases or a combination of both.”