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TRUCKING COSTS * Canada - Freight carriers' group urges rate hike close to 5%
Fort Erie,ONT,CAN -Today's Trucking -1 March 2010: -- Despite the trucking industry’s cost cutting measures during this recession, fixed and variable costs continue to rise and carriers should be looking for raises of at least 4.9 percent this spring... That's the latest recommendation from the Tariff Advisory Committee (TAC) of the Freight Carriers Association, which monitors economic conditions affecting the industry’s profitability and issues rate recommendations, suggests the increase should take effect by March 29, 2010... "Declining volumes and fierce competition has forced industry earnings well below acceptable levels. The industry is not generating sufficient income to re-invest in their businesses," FCA stated in a press release... Especially hard hit are equipment costs, which will rise dramatically due to the new U.S. EPA standards for the 2010... The general analysis could easily apply to most Canadian fleets facing cost and pricing pressures... (Photo from hankstruckpictures, by Martin Phippard: Kenworth W-900 B-Train tanks taken along the Trans Canada Highway in BC)
* Increased ferry rates could sink truckers
Victoria,BC,Canada -Today's Trucking -5 March 2010: -- Rate increases from B.C. Ferries that are scheduled to kick in on April 1 have local truckers concerned about being able to keep up... The rate for commercial vehicles will increase by 20 cents a foot to $5.25 for main routes like Horseshoe Bay-Departure Bay and Duke Point-Tsawwassen, which connect Vancouver Island with the mainland... Dennis Frith, the owner of Blueboy Express, told local media that trucking companies like his Victoria-based firm are already facing difficulties... Frith said the increase will force him to downsize Blueboy Express for the second time in three years and that means laying off drivers and other staff members... (Photo from inglesyfrancesencanada: BC Ferries in Vancouver)
* Canada - CTA wants U.S. hazmat fee reconsidered
Ottawa,ONT,CAN -Today's Trucking -5 March 2010: -- Near the end of February, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed a fee increase that didn’t sit well with the Canadian Trucking Alliance... PHMSA, a division of the U.S. Department of Transporation, wanted to increase the registration and fee assessment program for hazmat transporters by as much as $2,000. Carriers, including Canadian companies that haul certain categories and quantities of hazardous materials, could see the annual fee rise to $2,975 (plus a $25 administrative fee) from $975 for registration years beginning in 2010-2011... The fee increase would go towards funding the national Hazardous Materials Emergency Preparedness (HMEP) grants program... In a letter to the U.S. DOT, the Canadian Trucking Alliance urged the PHMSA to review the proposed increase... CTA reiterated the importance of funding safety and environmental initiatives such as the HMEP, but questioned the application and level of need for the proposed increase... (Photo from leestrucking.com: Lee's Trucking hazmat truck)
Labels: trucking costs
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