Shippers should brace for a rise in road freight rates
The Freight Carriers Association (FCA) of Canada, which represents close to 100 general freight carriers in Canada, is calling on its members to hike their freight rates by 5.5 per cent to help offset rising costs.
The association says increasing e-commerce, labor, equipment and insurance costs drove its price-hike recommendation to its members.
Under the proposal, motor carriers are being asked to implement the rate increase starting August, 6.
The proposal doesn’t take into consideration rising fuel costs, which the association says should be made up for through fuel surcharges that fluctuate to reflect changing fuel prices.
The FCA says that some carriers may have to increase their rates by more than 5.5 per cent to recoup the escalating costs of doing business and the decreasing amount of general freight on the highways.
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