FORT ERIE, Ont. — The Freight Carriers Association (FCA) of Canada has announced their recommendation of a 5.9 per cent increase in trucking rates to be effective Aug. 4, 2003.
The Tariff Advisory Committee (TAC) of the FCA meets to monitor economic conditions and the profitability of general freight carriers. After a recent evaluation, the committee recommended a general increase in freight rates, and also recommends that the industry take the measures necessary to charge for all services performed.
A continued soft economy, rising costs and thin operating margins continue to plague the industry and the FCA says high profile bankruptcies will continue to reduce capacity unless the system is changed.
The FCA says the industry must charge for all the services it performs, and the costs associated with appointment deliveries, handling of hazardous materials, waiting times, and border crossing delays cannot continue to be absorbed by the industry.
By charging for these and other services, the industry can be in a position to maintain fleets capable to meet increased capacity needs when the economy starts bouncing back, says the FCA.
However, says the FCA, charging for additional services won’t be enough. The industry needs to increase freight rates in order to offset cost increases, especially when carriers are faced with rising costs in almost every aspect of their business.
The FCA represents over 90 general freight carriers operating throughout Canada in matters related to economics, pricing, finances, costing and motor carrier statistics. To contact the FCA, call 905-994-0560.
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