Trucking industry facing leaner times as consumer demand drops

The Canadian trucking business faces a shaky market as cargo volumes and freight charges proceed to fall in contrast with the hovering highs seen throughout the pandemic.

Trucking HR Canada, a commerce group, says declining demand prompted an employment lower of greater than 20,500 jobs or seven per cent of the motive force workforce within the first three months of this 12 months in contrast with December 2022.

Mike Millian, president of the Private Motor Truck Council of Canada, says smaller fleets with fewer sources and contracts are particularly liable to a downturn, which comes as shoppers spend extra on providers and fewer on home items.

Millian says a good steeper drop in shipments within the United States has additionally dented Canadian trucker revenues, as drivers wrestle to seek out masses to haul again to Canada after making deliveries south of the border.

Earlier this month, 94-year-old American trucking big Yellow Corp. declared chapter after years of economic struggles, a demise that offer chain skilled John Gradek calls the tip of the iceberg.

Meanwhile, revenue margins in a aggressive business develop even thinner, as costs for long-distance masses fell seven per cent 12 months over 12 months final month within the U.S., in line with that nation’s Bureau of Labor Statistics.

This report by The Canadian Press was first revealed Aug. 24, 2023.