TORONTO — While 2008 will be remembered as one of the toughest, if not the toughest, years on record for many Ontario motor carriers, 2009 will be another challenging year.

The comments were made by Ontario Trucking Association President David Bradley at the start of the 82nd annual convention of the association.

“The ‘Perfect Storm’ has become an over-used expression of late, but it describes what the trucking industry has had to endure over the past year,” he said.

During the past 12 months or so, the trucking industry has been rocked by a number of factors beyond its control: the slowdown in manufacturing brought on by the appreciation of the Canadian dollar, ongoing woes in the auto sector, stagnant or negative aggregate demand in the U.S., and sky-rocketing diesel fuel costs.

“There has been some positive things happening of late — fuel prices have softened, the Canadian dollar is off its peak and capacity has left the marketplace. But things remain extremely volatile and the changes in the fuel prices and dollar are themselves a reflection of the slowdown in worldwide economic growth brought on by financial and credit market woes,” added Bradley.

While Canada is in better shape than most countries when it comes to the stability of its financial sector, Bradley cautions that we are not immune from the credit crunch particularly in the short to medium-term.

“And, what happens with the U.S. economy remains the chief wild card. Most pundits are pointing to a recession in the US economy next year; how deep and long it is will determine how impacted Ontario will be,” said Bradley. “Motor carriers whose balance sheets are already weak, could be particularly vulnerable. I expect we will see further reductions in capacity over the next few months at least.”

To help members combat difficult market conditions, Bradley says OTA and the Canadian Trucking Alliance, will continue to push for policies and initiatives that stimulate and set the table for recovery.

He points to the passage of Ontario’s speed limiter legislation, the development of a pilot of LCVs in Ontario, a new provincial grant program for auxiliary power units, progress on harmonizing the weight allowances on fuel efficient wide-base tires, and a campaign promise by the federal Conservatives to cut the excise tax on diesel fuel by 50 percent as examples of key initiatives that came to fruition in 2008.

For 2009, Bradley says “there is a lot of work to do to ensure that the progress made on a host of issues stays on-track. We will be particularly concentrating on those measures, fiscal and otherwise, that will stimulate economic growth and investment in the broader economy and within the trucking industry and ensure that the economy is supported by an appropriate investment in highway and bridge infrastructure.”