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CTA VP says cross-border trucking rates will continue to climb

OTTAWA, Ont. -- Cross-border shippers should be prepared for further trucking rate increases, the Canadian Trucking...


OTTAWA, Ont. — Cross-border shippers should be prepared for further trucking rate increases, the Canadian Trucking Alliance (CTA) has warned a group of importers.

CTA vice-president Ron Lennox outlined some of the causes of rising trucking costs at the recent Livingston Importer Conference last week in Chicago. While everyone knows fuel costs are skyrocketing, Lennox pointed out there are other factors as well.

For instance, he said carriers are facing higher costs associated with complying with new border regulations. They also have to fork out more for insurance coverage and the skyrocketing cost of equipment thanks to new emissions standards. The surging Canadian loonie is also adding pressure to cross-border carriers, Lennox said.

"The importance of the cross-border market is simply too important for most carriers to abandon," said Lennox. "But at the same time these carriers are faced with significant cost increases that cannot be absorbed, despite hefty competition. That is why in addition to fuel surcharges, it is becoming increasingly prevalent to see border crossing fees, FDA clearance charges, and security surcharges. De-regulation and competition have driven significant efficiencies in the trucking industry, but there is a limit to what carriers can do on their own."


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