NEWS RELEASES
September 12, 1997
FOR IMMEDIATE RELEASE
CONTINUITY OF TRUCKING SERVICE TO SMALL OR REMOTE COMMUNITIES MAY BE AT RISK
Fort Erie, ON, September 12, 1997 - Continuity of trucking service to small or remote communities may be at risk. With the expanding economy and the bankruptcy of Interlink, one of the largest trucking companies in Canada, the remaining carriers’ capacity has been stretched to the limit over the past two months. Motor carriers are now entering into their busiest season of the year and fear they will not have the equipment available to handle all the shipments tendered to them unless they purchase new trucks.
Since the trucking industry has earned only meager profits or operated at a loss since 1990, few carriers are willing to invest in new equipment without first improving their rate of return.
Today, every business depends on trucking service to ship their products to market or receive the merchandise they sell. To put it another way, everything we buy or sell depends on trucking service--therefore a financially viable trucking industry is important to everyone.
The trucking industry is announcing a rate increase of 4.4% effective October 6, 1997 which, when fully implemented, will produce a profit margin of about 2.6%. It is hoped this increase, along with continued cost cutting and productivity improvements, will generate sufficient revenues to allow truckers to reinvest in their fleets and add equipment where necessary. Without this revenue increase, there is little doubt that carriers will be forced to be selective and accept only the most profitable shipments.
The Freight Carriers Association of Canada (FCA) represents over 100 general freight carriers on matters related to economics, costing, pricing and finances, as well as motor carrier statistics. The FCA whose members operate in all Provinces of Canada, has been serving the trucking industry for the past sixty years.