FCA urges carriers to increase rates

Avatar photo

VANCOUVER, B.C. — The Freight Carriers Association (FCA) has recommended the general freight sector of the trucking industry increase rates immediately.

The association says a 5.8 per cent rate increase is needed due to increased labour, equipment, insurance and security costs. The FCA said fuel should not be used as an excuse to raise rates as carriers should be collecting fuel surcharges.

The association points out the driver shortage is resulting in escalating labour costs, equipment has increased in price, insurance costs are on the rise and the new hours of service will likely result in productivity losses. In the U.S., the FCA says carriers are losing between two and four per cent as a result of the new HOS rules.

The FCA also says that based on Stats Canada’s fourth quarter results for the top general freight carriers, the industry requires a revenue improvement of about one per cent.

Avatar photo

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.

Have your say

This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.