Canada’s Trucking Rates May Rise Due To ELD

There is a current proposal that when approved will require trucking company operating in Canada to use the electronic logging device. The sector that will be impacted the most will be those that deliver using containerized goods between Montreal and Toronto. Shippers will have no choice but to increase their delivery costs in order to compensate for the route and other affected legs if necessary. The same challenged were faced by shippers based in the United States last month when they were required to use the US ELD that changed the trucking capacity especially for routes in the inter-city.

The biggest issue will be coming from drayage truckers that usually take the route between Montreal and Toronto – a journey of 330 miles – and back within the same day because it might not be possible for them to do this anymore. For the roundtrip, it takes the entire journey around 11 hours going between these two cities. When taken into account the pickup and drop of all the cargo, it brings to a total of 12 hours. They still have one hour before they have reached the eligible driving hours set for them. If they get hold up in highway traffic or in any distribution centers or terminal, they could push that timeline over the edge and will result to an increase in costs.

Based on the ELD of Canada which will be implemented before the end of 2019, truck drivers will be required to record their HOS also known as hours of service using the ELDs. This task will tighten the already heavily burdened trucking capacity set on Canadian truck companies currently struggling with recruiting workers to replace the aging workforce and the spillover as a result of the mandate imposed by the US ELD.

This new order will add pressure to the marine terminals such as the port of Montreal because they would have to give truck drivers the permission for fast pickup as well as drop off of cargo for consistent trips. The additional issue that Canadian shippers will now have to overcome is with regards to missing the intermodal capacity which is usually present between the Montreal and Toronto lane.