Canadian Carriers Call for a Rate Increase

The Association seeks to have a general rate increase of 5.8%exclusive of any fuel cost increases. The FCA represents freight carriers across Canada in matters related to economics, pricing, finances and costing as well as motor carrier statistics. Its Tariff Advisory Committee is the unit making the recommendations. Here, as explained by the Association, are the factors driving its decision.

Just as in the U.S., Canada is experiencing an on-going driver shortage. In order to attract drivers, wages, fringe benefits and training costs are climbing. Using federal Canadian statistics, the FCA estimates labor costs to increase 5% annually.

Over the past two years, equipment expenses have risen with tractors costs increasing more than 10% over the period and trailers up more than 20%. Canada has stricter 2007 emissions requirements for truck engines that will have to be paid for and met.

Insurance premiums have climbed as much as 20% for the industry. Truck, trailer and cargo theft is estimated to cost the Canadian trucking industry $1 billion annually, resulting in greater safety and security expenditures for carriers to fight hijacking of trucks and cargo.

With new Canadian Hours of Service regulations expected to go into effect in January 2006, the cost increase for the industry is estimated at between 2% and 4%.

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