Canadian Truckers Seek Lower Border Costs

June 4, 2009

4 June 2009

Canadian Truckers Seek Lower Border Costs

The following is excerpted from today's edition of "Journal of Commerce".

U.S. border crossing costs are putting a damper on the ability of Canadian trucking companies to compete in a domestic transportation market already struggling under a deep recession and growing trans-border carrier options from the United States, according to Canadian trucking interests.

In testimony before the House of Commons Standing Committee on Agriculture and Agri-food, Ron Lennox, vice president of the Canadian Trucking Alliance pointed out that, as has been the case in the United States for the last two years, excess capacity and weak demand are giving shippers the upper hand at the negotiating table.

“At the same time, there are pressures coming from a whole host of areas in both Canada and the United States that are making ... shipment of goods ..more expensive,” Lennox said.

He noted the U.S. Animal and Plant Health Inspection Service, introduced several years ago, more than doubled the annual fee each truck must pay to enter the United States, which is now $205.
The Western Hemisphere Traveler Initiative, which went into effect June 1, requires Canadian drivers to pay another $87 for a passport or $50 for a Free and Secure Trade Program (FAST) card.

In addition, stricter U.S. emission standards are adding thousands of dollars to the cost of purchasing a truck. “But like all other costs, they must be factored in to the rate carriers charge their customers. They can’t simply be absorbed.”

Technology is helping alleviate some of the pain, Lennox said, citing electronic manifests for cross-border truck trips which can reduce costs by making border crossing more efficient. And both the U.S. and Canada are working at eliminating the processing of paper permits at the border.

“But the common thread running through all of these things is that government action is required to bring them to fruition so that the benefits can be realized by carriers and the customers they serve.”


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
Document Type: 
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