Transcourt, Oakville Ontario: The Canadian economy has had a significant impact on the trucking industry with the depreciating loonie.
Halfway through 2016 and economic experts are forecasting a continued rise in equipment costs, driver retention and changes to rules and regulations.
The Canadian dollar dropped to 69 cents in January and hasn’t been as strong over the course of the year. As a result, Canadian truck dealers are spending an average of 40% more on tractors, trailers and parts. It’s an economic challenge for the industry, especially private fleet owners.
Cost of attracting and retaining drivers to increase
Driver shortages are a consistent problem in the industry, with 33,000 vacancies expected by 2020. The cost to attract and retain them will continue to increase. Companies will spend more on advertising, road testing and recruiting in order to get new drivers and maintain their current roster.
Rules and Regulations
Government changes in both Canada and the U.S. are going to have a significant impact on a company’s ability to manage its cost. Electronic logging devices (ELDs) will become mandatory for carriers in the U.S. next year, including Canadian drivers who are operating in the U.S. These devices cost anywhere from $165 to $832 per vehicle.
The rise in charges and changes to regulations may negatively impact private fleet owners as a result.
Karen Hazan, Canadian Cartage, May 2016