TORONTO, Ont. – “Even a softening in economic activity will not significantly alter the capacity crunch in trucking services currently creating upward pressure on truck rates and surcharges, CTA CEO and OTA President David Bradley told an audience of shippers, 3PLs, buying consortiums and carriers at a special meeting of the Chartered Institute of Transportation and Logistics in Toronto today.
“The reality is that the shortage of truck drivers is only going to get worse for the foreseeable future, which will take up any slack that might occur in volumes.”
The current economic forecasts point to continued growth and increased demand for trucking, Bradley said.
“Market conditions do not suggest that there is any reason for carriers to reverse course in their pursuit of reasonable margins and to cover increasing costs of labour, fuel, equipment, etc.,” he said. “It is to be expected that shippers will challenge their carriers and that the resolve of many carriers is being tested at the present time. That is only natural. Carriers will make their own business decisions but there does not seem to be any major shift in the market that would suggest the industry should give up the gains it made last year, or that it should not continue to improve its financial performance.”
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