Not being paid and too many miles are taking their toll.
Ottawa—Trucking lines have worked hard to keep food and other products moving during the COVID-19 pandemic but they have reached the point where financial assistance is crucial to keep them in business, says the Canadian Trucking Alliance (CTA).
President Stephen Laskowski says “The Canadian trucking sector has worked as hard as it can during this crisis to ensure Canadians continue to have access to essential items such as food and sanitary products.
“But it is becoming increasingly clear that as our industry continues to serve the supply chain and economy as required, it also faces unique and rapidly escalating challenges that requires tailored solutions to protect the stability of the supply chain during the COVID-19 crisis and its aftermath.”
While the government has introduced several financial programs to assist businesses generally suffering financial hardship related to the pandemic, “our sector needs additional, focused assistance above and beyond what the Canada Emergency Wage Subsidy (EMS) provides due to the nature of our sector and the critical relationship it has to the supply chain. Although, the EMS may work for many sectors, it does not stabilize the Canadian trucking industry.”
What trucking needs to ensure security and stability in servicing the supply chain is a Payroll Tax Deferral Program to provide fleets with the needed cash to maintain operations, he said. Additionally, CTA wants an increase in the meal allowance for all truck drivers facing rising costs associated with operating during COVID-19.
A CTA survey of nearly 10 trucking operations across Canada, which employ 60,000 workers, found the companies have experienced a 27 per cent decrease in revenue and 300 per cent increase in repositioning empty trailers for the next load, movements that don't generate revenue.
Without financial help. 37 per cent of the carriers “have significant concerns regarding the continuation of their operations,” Laskowski said. Nearly two-third of their customers “have recently asked for payment deferrals or simply have not paid the trucking company for their services.
“Several trucking companies say they are quickly approaching the ledge of a perilous 'freight cliff. While many trucks are moving COVID-19 products and keeping store shelves stocked, they struggle to find return freight, leading to evaporating margins and the inability to cover the full cost of operation. They report customer demands for their services are disappearing while payment and collection issues are mounting.
“Ottawa has been vigilant in working with the Canadian trucking industry during the crisis to ensure the trucking industry continues to execute the essential services required of our sector,” he said “We are hopeful the government will provide our industry the crucial, tailored financial support it requires to help steer Canada out of this crisis.”
Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.