OTTAWA, Ont. — The truck transportation sector shed more jobs in April than all but two other segments of the Canadian economy, according to the latest figures from Statistics Canada.
Truck transportation lost 3,300 jobs in April, behind only universities (6,900) and food services and drinking places (4,100).
“This is a further indication that the trucking industry is still playing catch-up in terms of capacity reduction,” responded David Bradley, CEO of the Canadian Trucking Alliance. “For the past several months the reduction in freight volume has been outpacing the industry’s efforts to cut capacity. Capacity will inevitably and eventually adjust to the market and when that time comes, some of the downward pressure on freight rates should abate.”
Bradley predicted further pressures will plague carriers now that diesel prices are again inching upwards.
“The softness, relatively speaking, in the diesel market had probably enabled some companies who were teetering on the edge to survive,” he suggested. “However, with diesel costs climbing again, it may be tough for some of those companies to continue. Certainly, carriers will have to be disciplined in terms of fuel surcharges if they are to continue in business.”
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