For several years during the past decade, carriers from all modes made a concentrated effort to gain back efficiencies lost by wasteful shipper practices such as unnecessary waiting times to load and unload by instituting surcharges. They were also keen to pass on variable costs such as fuel through surcharges. Tight capacity across almost all modes, combined with high energy costs, and high shipment volumes starting in the third quarter of 2003 made for the most significant transportation cost increases since deregulation and surcharges were an important element. For example, a US study with direct relevance to Canada found that out of a 35-hour driver work week, 23 hours were spent just waiting to load and unload. As a result of such practices, motor carriers began pushing detention surcharges in recent years. But our annual Transportation Buying Trends research, conducted in partnership with CITA and CITT, shows any gains made since 2004 were completely eroded last year. In fact, the penetration of detention surchages are now at their lowest level since we began the survey back in 20004.

For more Canadian data sourced data on surcharges, rates, shipment volumes, capacity, new equipment purchases and more, see our annual Transportation Buying Trends report available for $99 through www.trucknews.com.