Quick facts on the current state of the trucking industry in North America – Rates, Market, Vaccine Mandates, Convoy
Updated: February 2, 2022
What are the new requirements for truckers entering Canada and the US?
- Canadian truck drivers need to be fully vaccinated if they want to avoid a two-week quarantine and pre-arrival molecular test for COVID-19 before crossing Canada.
- Likewise, all truck drivers who cross U.S. land borders must be fully vaccinated.
- More on the new federal vaccine requirements for cross-border essential workers, here.
Protests in Canada against the new requirements for cross-border essential workers
the Freedom Rally
- A convoy formed by hundreds of truckers moved across Canada to protest the new requirements for cross-border essential workers.
- The convoy called “the Freedom Rally” is formed by drivers driving their own vehicles.
- It arrived to Ottawa over the weekend to stage a protest on Parlament Hill.
- Today, there are fewer protesters than over the weekend but heavy trucks and other vehicles continue to clog downtown
- The convoy has raised $4.6-million from more than 60,400 donors on GoFundMe.
In Alberta…
- In Alberta, trucks and cars have been blocking the Coutts, border crossing just north of Sweet Grass, Montana.
- In Alberta, a blockade by truck drivers stationed near a border checkpoint at the Canadian-US border, blocking a major commercial artery between the two countries.
- The drivers have said they’re not moving until health restrictions are lifted.
How many truckers will be sidelined by the new vaccination requirements?
Some 10% to 20%, or between 12,000-22,000 Canadian truck drivers, and 40%, or 16,000 U.S. truck drivers, according to the Canadian Trucking Association.
How does it affect supply chains in Mexico, the USA, and Canada?
- The vast majority of all consumer products and food in Canada, the US, and Mexico are shipped by trucks.
- Shortage of available drivers gets worse- The vacancy rate across the truck transportation sector was 8.0% in the third quarter of 2021, the second-highest vacancy rate in the Canadian economy
What other factors are affecting supply chains in Mexico, the USA, and Canada?
- The current Omicron wave and Illness- related absenteeism
- Historic weather events in Canada and the US – Very active winter storms
- The obligation to declare the Carta Porte on the Mexican customs entry will be in effect on March 31.
- New Lunar Year, aka Chinese New Year, brings strong import volumes that put pressure on inland transportation.
What can shippers expect in Q1 nad Q2? – Freight Rates Increase
- Truckload spot market pricing is forecasted to increase another 6%.
- LTL rate increases are forecasted between 11% to 9%.
What can shippers do?
- Remain flexible – Allow for flexibility in schedules, pick-up, and transit times.
- Plan shipments ahead
- Prepare for an increment in rates
- Contact your 3PL provider: Mexicom Logistics at +1 514 667 0175 – info@mexicomlogistics.com
Sources:
[https://globalnews.ca/news/8540245/ottawa-trucker-convoy-risks/] [https://www.theglobeandmail.com/canada/article-trucker-convoy-freedom-rally-vaccine-mandate/] [https://www.reuters.com/business/canada-us-supply-chain-still-could-face-disruptions-due-vaccine-mandates-2022-01-Trucking HR Canada
[https://www.cnn.com/2022/02/02/americas/canada-ottawa-protests-covid-border-truckers-wednesday/index.html]
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