BCTA warns rates must rise to keep pace with fuel costs
September 1, 2000
The B.C. Trucking Association has warned its customers that freight rates must increase to keep pace with rising fuel costs. The association, which represents more than 800 trucking and bus companies,...
The B.C. Trucking Association has warned its customers that freight rates must increase to keep pace with rising fuel costs. The association, which represents more than 800 trucking and bus companies, said truckers are struggling with the cost of diesel fuel, which has doubled since January, 1999, and has risen by more than 30 per cent in the past two months alone.
“Shippers have to understand that this increase in cost simply cannot be borne by trucking companies,” said Paul Landry, president and chief executive of the association. When it makes money, the average trucking business operates at a profit margin of between five and seven per cent, Mr. Landry said. But firms that have not kept pace with rising fuel costs are now losing money.
The BCTA has produced a table recommending how much carriers should adjust rates to keep fuel costs at a steady proportion of expenses. The association has also asked the B.C. government to lower its portion of diesel fuel taxes, which is 11.5 cents a litre. The B.C. government has yet to respond.
Ontario pushes back date for implementing IRP
Ontario won’t implement the International Registration Plan (IRP) until April 1, 2001, the Ontario Trucking Association reports.
The group wanted the Nov. 1 target pushed back because — if the system was introduced this fall — many carriers would have been forced to pay registrations under both the IRP and CAVR until next spring, when most provinces are scheduled to join the IRP’s apportioning plan.
The IRP divides registration payments based on the share of a truck’s mileage within a particular jurisdiction.
Carriers serve shippers with a piece of their mind
During the Transportation Club of Toronto’s Road Carrier Night in October, several carrier speakers used the opportunity to tear a strip off shippers, also in attendance.
“It really hurts me that an industry can exist that’s as important as road transportation and get treated as a non-entity,” said Stan Dunford, chairman and CEO of Contrans Corp. Dunford said he was particularly incensed with how some shippers are trying to dictate the size of fuel surcharges, likening that to the trucking industry stating its members would only pay a certain price for a car.
“That’s absurd but not any more absurd than GM telling me what they’re going to pay me for a fuel surcharge that is based on my cost,” said Dunford. Dan Einwechter, president of Challenger Motor Freight, also criticized shippers who say they will consider paying higher rates only if carriers find more service efficiencies. “You can’t get blood from a stone. It’s time to be reckoned with,” he said.
PMTC names Vehicle Graphics Design Awards winners
The Private Motor Truck Council of Canada has named this year’s winners of its Vehicle Graphics Design Awards.
Two awards were presented in each category: Straight truck : 1. Twin City Graphics, design: Davis and Associates; client: Good Humor Breyers. 2. Alpine Graphics, design: Nabisco; Special event/promotional: 1. Signature Graphics; design: U.S. DoT, client: JTS Inc. 2. Twin City Graphics; design: London Health Sciences Centre; Nighttime safety: 1. Twin City Graphics, design: Home Hardware. 2. Turbo Images, client: Starship Transportation; Tractor trailer: 1. Twin City Graphics; design: The Ongoing Partnership; client: J.M. Schneiders Inc. 2. Multi Lettrage, Rivieres des Prairies,design: Jean Francis Bourgouin; client: Recubec Inc.
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