Nearly a third of Ontario carriers lay off workers as U.S. tariffs loom
Nearly one in three Ontario carriers – 32% – have already laid off some employees amid the looming threat of U.S. tariffs on Canadian imports.
When polled, 68% expected conditions to worsen, 29% were unsure, and only 3% believed that conditions might improve in the short term, according to an Ontario Trucking Association (OTA) news release.
Market uncertainty is directly impacting the industry’s workforce. Carriers suggest that if business conditions do not improve, the sector may see increased layoffs. The OTA survey found that 51% have not yet laid off employees but said they could be forced to do so if conditions don’t improve.
Consequently, 62% of respondents said they would need to lay off employees in the event of a prolonged trade war with the U.S. Only 9% believed the impacts of potential tariffs would not necessitate a reduction of their workforce.
Carriers are also increasingly frustrated and pessimistic about business conditions as they grapple with a freight recession, illegal competition, skyrocketing costs, and tariffs.
They suggest the U.S. tariff threat led to an 18% average uptick in shipment cancellations from Canada to the U.S., and a 14% increase in cancellations from the U.S. to Canada.
Products affected
All products and commodity groups appear to be affected, from parts for assembly line manufacturing, automotive, agricultural, food and food processing inputs, wood and other construction materials, and consumer goods. All are reportedly impacted by the current business climate and decline in customer demand, the release stated.
The political and media drive to ‘buy Canadian first’ does not seem to be providing more than a very modest impact on operations. Only 16% of carriers indicated they have seen this marketing push reflected in their customers’ purchasing patterns, with an average reported increase of about 10%. The remaining 84% of carriers report not seeing an obvious uptick in domestic shipments due to the campaign.
60% of loads are cross-border
The survey of OTA members aimed to identify trends and gain insight into business conditions. Seventy-one per cent of respondents were carriers, and 29% were suppliers and allied trades.
The carriers collectively operate nearly 7,000 Class 8 tractors in different markets and employ around 10,000 workers. Nearly 60% of loads this group carries are cross-border trade, with the remainder being internal domestic trade (42%).
When asked what the government could do to improve conditions and relieve pressure on carriers, the majority indicated authorities need to get a grip on the underground economy and start meaningful enforcement of carriers who break laws and don’t abide by regulations.
“These carriers are undermining compliant and responsible carriers who are already grappling with increasing labor costs, a myriad of taxes in face of the worst freight market in nearly 40 years,” Geoff Wood, OTA senior VP of policy, said in the release.
“It is no wonder, then, that compounded by an out-of-control underground economy, the real potential of tariffs could be the final straw for more than a few responsible, compliant companies and their employees.”
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This is why the Gov should provide training for younger truck drivers get trained as mechanics or another skilled trade and we need to look very hard at limiting foreign workers that often come in as students. The fed and province should look at a plan to cover the cost of plates and insurance for part or all the costs of up to 9 power units per company fleet by working with SGI MB and the B C gov insurance for those companies that do not use driver inc and provide some interest free loans up to a maximum of 999 000 per company and a forgiveness of up to 50 000 per company in my opinion
The company I drive for keeps the fleet very well maintained. In house mechanics at all five terminals and immediate call outs for urgent repairs are making sure we stay in compliance. Zero tolerance for reckless driving and speeding. All highway tractors 3 years old or less. This operation costs a lot to run. We need to eliminate those not following the regs. Government needs to implement legislation with massive fines and those owning these fly by night companies getting jail time. Not only are these operations undermining law abiding carriers, they are killing people on our roads.
Truck driver shortage. Not today
I would not trust anything that comes from the Ontario Trucking Association. It’s run by big trucking companies of Ontario that are about their pockets and like big cars companies are laying the ground work for government assistance. Just like the speed limiter law that the OTA introduced to the Ontario Government. It had nothing to do with safety. If it was about safety, they would never had introduced it. The OTA claimed it was about safety, but it wasn’t. It was about the money. See big Trucking companies already got an insurance break on their insurance premiums if they willingly turned their fleet down to 100 kmph (limit them) the reason they did this was to slow companies down that page by the mile which includes Owner Operator’s and company drivers because when they go down the road and stop to take their mandatory breaks, Owner Operator’s and company drivers that get paid for what they do pull off the highway, get their coffee and get back down the road. This takes 15 minutes to get off the highway grab their coffee and back on the highway. Hourly paid employees/drivers their break doesn’t start till their truck is parked. Then their 15 minute breaks starts and doesn’t end till 15 minutes passes, then back into their truck and get back on the highway. This take a minimum of 25 minutes but usually closes to 35. So what happens is the hourly paid driver who loaded before the get paid for what you do drivers/Owner Operator’s pass the hourly drivers, and because they are all going to the same destination, the get paid for what you do drivers get unloaded first and then hourly drivers last. This causing The OTA company hourly drivers costing the company money, which he would are one of the BIG OTA companies money and at the end of the year is millions of dollars. Not to mention the number of lost lives in truck accidents caused by speed limiters has nothing to do with safety, it has to do with the all mighty dollar. Proper training will keep our highways safe, not speed limiters, all they did was kill people and good drivers. The public has no idea how many accidents happen because of speed limiters or the number of people that have died because of them.
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I agree with you
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As a 26 year veteran OTR driver that runs Ontario North and cross border on a weekly basis I read and re-read your comments with interest.
So I searched for any data/statistics I could find to support your statement that speed limiters kill people. I couldn’t find any data to support this claim. That doesn’t mean I agree with speed limiter legislation or the reasons used by industry insiders to support that legislation.
The fact is, excessive speed, poor space management, distracted driving, and fatigue are the primary causes of big truck collisions/accidents. All of the statistical data bares this out, as does my experience and yours.
It’s more dangerous out there than it’s ever been. Blaming it on speed limiters is ludicrous and a distraction from the important issues we all face as professional drivers.
You don’t like speed limiters. I get it. Neither do I. But they sure as hell don’t kill people. A truck is always in the hands of a driver. Unless that is, you’re only holding on to the steering wheel.
Canada should provide a rebate for people who buy “Made In Canada” products! We have everything! Let’s make it economical to BUY CANADIAN!
With the new CVSA votes to put truck drivers with limited English out of service in the Usa. Might deter some New Canadian drivers who speak with broken English and who can barely be understood when communicating in a full spoken sentence. Ŵhen understanding that 50% of Canadian truckers are immigrants that’s 30% out of the 60% who cross the border who might run into problems. While most undercut the rates here in Ontario the capacity has risen so most brokers never want to come close to $2/mile anymore on average for a 40k lbs load or more. The average on appt market rates dropped to $1.65/mile with Brokers equitying fuel price drops in. It’s become a crap show in Ontario trying to operate here as a fleet with less than 5 trucks. Profit margins are in the pennies. The CVSA law needs to be implemented in Canada but with the new administration in power I can’t see this happening.
It is a shame that respectable carriers that invest in good equipment and experienced drivers safe equipment are being undercut by non experienced out of country drivers. WHO DON’T GET PAID BY THERE UNSAFE GARBAGE CARRIERS. THE UNSAFE THEIF CARRIERS SHOULD BE SHUT DOWN IMMEDIATELY. Drivers should have to speak and read perfect English to drive our high ways.