KEEPING IT ROLLING

“The real issues facing our trucking industry are the economy, energy costs and driver shortages.”

Christian Sivière is president at Solimpex.

TRUCKING TAKES CENTRE STAGE

AMID OTTAWA PROTESTS, WHAT ARE THE ISSUES FACING THE INDUSTRY?

Over the last two years, Canadians got a crash course on supply chains. It started with the rail blockades in January 2020, then the pandemic in March, going through different phases with shortages of personal protection equipment, various commodities, lockdowns, re-openings followed by more lockdowns, a heat wave and forest fires in BC last summer, flooding in the Fraser Valley, with roads and rail lines closed for several weeks.

During that time, we had the US border closing, except for essential workers and trucks, and careful reopening. And as we seemed to emerge from the pandemic last summer and life got back to a quasi-normal, Omicron hit us last fall, leading to another odd Christmas and year-end celebration.

By that time, most Canadians were tired of this pandemic. We are not alone though, as it’s fair to say that every country around the world is feeling the same. But with the vaccine rollout (so far vaccination is the only proven method of fighting the virus) and around 85 per cent of Canadians fully vaccinated, we could look forward to a bright 2022.

With ample pre-advice, the federal government introduced a vaccine mandate for truckers entering Canada on January 15. Several industry groups, including manufacturers, lobbied the government to scrap the mandate or delay it until April, arguing that it was going to create shortages.

This was odd. The vaccination rate among truckers mirrors the overall population, so this measure only affects a small percentage. In addition, the US Government was implementing the same measure effective January 22, so what choice did we have? In retrospect, one could ask: what were we thinking when we decided to implement these measures on different dates?

OTTAWA CONVOY

In protest, truckers headed to Ottawa, forming a “freedom convoy,’’ soon turning into a protest against virus measures in general. This became very political as various opposition politicians jumped on it to take selfies with protesters. In Alberta, another scenario developed with some truckers blocking the Montana border in Coutts.

All this brought Canadian truckers to front-page news, not just here but across the world. But it is hard to see how it can help the trucking industry. It will also be interesting to see who financed this.

Meantime, the main issues facing us all is the pandemic and our health, then the economy and our livelihood. When we find better ways to manage and hopefully eradicate the virus, everyone will know. But for now, there is no other choice but to apply collective measures and work together.

The real issues facing our trucking industry are the economy, energy costs and driver shortages. With the pandemic and changing consumer patterns, supply chains shifted. Higher raw material costs and shortages greatly affect manufacturers. For example, the shortage of semiconductors impacted the automobile industry, and we see the result. Canadian auto production last year hit its lowest level since 1967. In 2021, we produced just over 1.1 million light vehicles, down from 1.4 million in 2020 and two million in 2019. Most of these are exported to the US and as our North American automotive supply chains are integrated, it means fewer trucks crossing the border.

Regarding energy costs, the world faces the same issue. Canada is an energy producing country, but we have distribution challenges. Rising energy costs hit us too. The issue of driver shortages is part of the greater labour shortage experienced across industries. Improved working conditions should help overcome this.

Another issue facing the industry in a more subdued way is the relentless growth of e-commerce, with companies like Amazon grabbing more market share, driving brick and mortar retailers out of business. When traditional retailers disappear, so do their suppliers, wholesalers, distributors, warehouses, transport companies and so on. The distribution of products becomes concentrated among fewer players who dictate their terms, squeezing transport companies in the process.

Another factor is the parallel development of the gig economy, which we could also call the “informal’’ economy, with independent drivers delivering parcels, groceries, pizzas and other goods outside the traditional transport and delivery industry.

A FAIR PRICE

Looking at the big picture, taking social and environmental issues into account, and to prevent the recent supply chain disruptions, we must shorten our supply chains and encourage reshoring. This takes investment and time. We must also stop this frenzy of buying online, encouraged by the “free’’ shipping and “free returns’’ madness, which results in overconsumption and creates waste.

The true cost of transportation must be considered, to ship consumer products across the globe, move exotic fruits and vegetables from South to North, or to truck goods across Canada. Shipping is not free. When we pay a fair price, the profession will be recognized and valued. SP