Canadian Shipper


Drayage rates could increase after CTAO trucker action in Ontario

TORONTO, Ont.–According to a CIFFA bulletin September 28, as a result of the agreement made with the owner-operators represented by the Container Trucking Association of Ontario (CTAO) on September 18th, 2015, many drayage companies are expected to announce rate increases to their customers this week.

Drayage companies are still digging out from under the stack of containers that built up during the nine days of tense and often violent work stoppage by the truckers. While these companies have been trying to get operations back to normal, they have also begun working to implement the significant increases agreed with the truckers – with only a two week notice period, the bulletin said.

Some carriers may be issuing new rate sheets with an effective date as early as October 1.

“This would, of course, give virtually no notice to the freight forwarding community or to their customers, with thousands of containers on the seas or on the rails, quoted and moved at previous rate levels.  Normal business practise dictates that at least 30 days of notice be given for a rate change. While this is not a normal situation, one hopes that some reason would prevail.  Drivers, drayage companies, freight forwarders and cargo owners are in this unfortunate situation together. No single sector should bear the financial burden, which must be considered a shared responsibility of all parties,” said the association.

There is no uniformity to the expected rate increases and CIFFA has been advised that increases will range from 35% to 50% for some zones, which can translate to as much as $90 to $150 per container and will be implemented in very short order, the bulletin said.