OTA says shippers dealing with new trucking culture
TORONTO, (May 13, 2004) — The trucking industry is changing, says Ontario Trucking Association president David Bradley-and the shipping community should be prepared to accept it.
Speaking to members of the Supply Chain & Logistics Canada yesterday, Bradley said a collection of overlapping and increased costs — including fuel, insurance, border-related and security costs, as well as rising prices in equipment, combined with new hours of service regulations — is forcing carriers to implement accessorial charges or increase rates for transportation services. This represents a cultural change in the industry, that the shipping community is beginning to recognize.
“It is still early days, but the mood in the market seems more accepting of rate increases and accessorial charges where the shippers are provided with credible information on delays and cost increases,” Bradley said in a press release.
New hours of service rules in the U.S., which limit a driver’s allowable on-duty time, has perhaps delivered the biggest impact, he added. “The new U.S. HOS regulations which limit the productivity of truck drivers, have served to sharpen carrier and driver focus on making every hour count. There is little tolerance for delays. The drivers have to be paid and carriers can’t afford to have equipment hung up at loading docks or in long line-ups at the border.”
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