WINDSOR, Ont. — The Freight Carriers Association (FCA) is recommending a five per cent increase in freight rates to provide relief from skyrocketing security and insurance costs.
According to FCA, the trucking industry is already facing major price hikes for new equipment, e-commerce investments, as well as labor and fringe costs. Now it can add ballooning insurance and security costs to the list.
As instances of cargo theft hit epidemic proportions and the aftershocks of Sept. 11 ripple through the insurance industry, cost are only continuing to mount for carriers.
The industry has also experienced a sharp increase in bad debts due to more and bigger bankruptcies. A rate increase to offset these cost increases is essential so the industry can continue to provide reliable and efficient service. FCA recommends the increase become effective Aug. 5.
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