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Canadian Trucking Industry

Canadian Trucking Industry

In the Canadian trucking industry, as with all other sectors of the economy, there are variants that affect both its effectiveness and profitability. Some factors that have negatively affected them, and may do so in the future, include:

  • Fluctuating fuel Canadian Trucking industryprices. Fuel prices will naturally affect the operational costs of running trucks; however, even lower fuel prices, while being an initial bonus for truckers, will affect other industries negatively with a ripple effect on trucking.
  • Less than full cargo transporting. Running a truck that has less than a capacity load will cost the customer more than if the cost is shared by several customers for a full load.
  • Higher interest rates, higher license and registration fees, increases in insurance premiums, and increases in accidents and adverse claims all spell increasing costs to the industry and the customer.
  • Difficulty in attracting and retaining qualified drivers and independent contractors.
  • Recessionary economic cycles and downturns in customers’ business cycles.
  • Armed conflicts or terrorist attacks, and natural disasters in countries to which we import goods or from which we receive imports.
  • Instability of the credit markets

 

Some factors positively affecting the trucking industry may include:

  • Improvements in the quality of capital, including trucks, buildings, computerized software, etc.

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  • Longer hauls when possible, servicing more clients with a single run, and implying less downtime for drivers and trucks. It may also improve fuel efficiency.

 

  • Containerization, referring to the movement of commodities in large containers rather than in smaller units. The resultant reduction in handling of goods protects the cargo from damage or theft, and requires less time for loading and unloading. Easy, mechanized movement of containers makes transfer of goods to and from trains, ships, and planes faster, increasing customer satisfaction.

 

  • Greatly improved communications between dispatcher and driver, and trucker and other drivers allows customers to keep abreast of the status of their cargo, while ensuring that breakdowns or accidents are rectified speedily.

Whatever the factors, positive or negative, the Canadian trucking industry is resilient, constantly monitoring changes and adjusting to keep them on the road.

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