FORT ERIE, Ont. – Despite tough economic times and pushback from customers, Canadian carriers need to raise freight rates 4.3 percent, recommends the Tariff Advisory Committee of the Freight Carriers Association (FCA). 

The group, which is made up of trucking executives and meets periodically to monitor economic conditions and the profitability of general freight carriers, says the cost of maintaining facilities, terminals, human resources and equipment is rising at time when profitable freight is hard to find.

"Despite the poor economy, though, the industry requires investment capital to meet the current and future demands of its customers," FCA states in a press release.

Changes in fuel costs were excluded from the analysis as they are handled by carrier fuel surcharges. However, in recognizing the decline in diesel prices since August 2008, the fuel surcharges recommended by TAC have been reduced by over 60 percent.

Even though the driver shortage of a few years ago has dissipated because of low freight volumes and excess capacity, FCA reports that labor costs for trucking companies are still increasing as much as 6 percent on an annual basis, dependent upon the region of the country.

Meanwhile, "the costs associated with providing services such as appointment deliveries, waiting time, protective service, border crossing, return of pallets and handling of dangerous goods cannot be absorbed by the trucking industry."

These services must continue to be charge for separately, not in general rates since it would cause shippers not requiring services to subsidize those that do.