Operating Ratio of Top For-Hire Freight Motor Carriers

The top 91 for-hire motor carriers of freight (Canadian-based trucking companies earning $25 million or more annually) generated operating revenue of $2.36 billion and expenses of $2.20 billion in the fourth quarter. Average per-carrier revenue decreased 3.2% from the fourth quarter of 2004 to $25.9 million. Average per-carrier expenses decreased 2.5% to $24.2 million.

The top for-hire carriers' operating ratio (operating expenses divided by operating revenue) was unchanged at 0.93 compared with the fourth quarter of 2004. A ratio greater than 1.00 represents an operating loss.

Fourth quarter 2005 data on the top for-hire carriers, taken from the Quarterly Motor Carriers of Freight Survey, provide results from 66 general freight carriers and 25 specialized freight carriers.

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Sources : Statistics Canada

New President at the Canadian Trucking Alliance

Ottawa, 2006-05-01 — The Canadian Trucking Alliance (CTA) has moved quickly to name a new chairman following the tragic and untimely passing of John Cyopeck. Moving into the chair for the 2006-2008 term will be Claude Robert, CEO of Group Robert of Boucherville, QC.

Robert, considered one of the most innovative, energetic outspoken leaders in the industry, says he intends to build on the momentum started by previous chairmen John Cyopeck, Evan MacKinnon (MacKinnon Transport) and Allan Robison (Reimer Express) “to build a new culture of competition based on compliance” in the trucking industry.

One of Robert’s first priorities will be to encourage all provincial associations, jointly under the CTA banner, to push hard for the mandatory use of speed limiters that would provide much needed fuel savings in the face of price increases to $75 and $100 per barrel of oil.

Mr. Robert also plans to address the problem of idling and work for the industry-wide adoption of on-board electronic logging systems to promote conformity with hours of service regulations. Mr. Robert also hopes to standardize allowable weight accross Canada and bring get importers/exporters shoulder a greater part of the burden imposed by US cross-boarder regulations.

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Sources : Canadian Trucking Alliance

The Standard Contract: Here to Serve!

For the past few years, stakeholders in the Quebec road transportation industry have had at their disposal a standard contract, handling every aspect of road freight transportation. The contract, which was elaborated and approved by members of “Forum des intervenants de l'industrie du camionnage général,” aims to promote agreement between shippers and carriers. While its use is not mandatory, all parties are encouraged to use it to equalize road contract negotiations.

After bill 135 was tabled and adopted in 2000, the Forum was created to bring together, and facilitate exchanges between, stakeholders in the road transport industry. Over time, frictions had arisen between parties regarding carriers’ working conditions, especially since markets opened up in North-American. The disputes centered on pricing, subcontracting, hours of service, idling, the increase in fuel prices, and special requirements imposed by shippers.

Publication of a report (pdf, french) by the Forum revealed these issues and participants’ grievances. The report concluded by recommending that carriers acquire better management skills and that parties use a standard contract to better protect themselves against factors beyond their control. The main purpose of the standard contract is to help carriers foresee all binding aspects of commercial agreement they sign with their clients.

As well as general terms and conditions, terms of payment, and cancellation clauses, the standard contract therefore also covers in detail price determination, fuel cost variability, or any other factor likely to have a financial impact, such as insurance, payment schedules, vehicle maintenance, and trip cancellation. The standard contract also allows the shipper to require that the carrier meet certain performance or security criteria. Finally, the standard contract allows both parties to specify financial guarantees and arbitration procedures in the event of a dispute.

The Forum is composed of the following associations: the Association professionnelle des chauffeurs et chauffeuses de camions du Québec inc. (APCC), the Syndicat national du transport routier (SNTR), the Association du camionnage du Québec (ACQ), the Conseil de l’industrie forestière du Québec (CIFQ), the Association des intermédiaires en transport du Québec (AITQ), and the Canadian Federation of Independent Business (CFIB).

A PDF version of the standard contract my be downloaded here.

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Source : Forum des intervenants de l'industrie du camionnage général