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.
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