Mandatory vaccination of truckers crossing the border is already contributing to supply delays and rising freight costs. However, there are no food shortages in sight, according to business experts and organisations.
The truck fleet of Groupe Morneau, a major carrier based in Montreal, is mainly dedicated to delivering goods within Canada. For all truck trips from or to the United States, ie between 10 and 15 per day, the company uses subcontractors.
However, for the past ten days, the price charged by these partners has increased by an average of $2,000 to $5,000 per trip.
“The worst we’ve seen is a trip to California that cost around $6,000 and that we were subjected to for $12,000,” says the president, André Morneau.
What is in question is the entry into force this month of the compulsory vaccination of truckers to cross the border, on one side or the other. The number of truckers available for these cross-border movements has been reduced, since approximately 15% of them would not be vaccinated. Several companies are said to have started offering much higher amounts to carriers to secure their cargo. Mr. Morneau believes that several of them have also ordered a larger quantity of products for fear of a possible shortage.
“I’m told, ‘Why would I bring your stock for $6,000 when someone else is offering me $12,000?’” says Mr. Morneau. I check with my clients if they accept the increase. Most say yes. Given the difficulty of finding truckers, Mr. Morneau also notes that he has to keep his customers waiting.
According to the Quebec Trucking Association, several trucking companies make the same observations as Groupe Morneau. This is also the case in stores, underlines the Retail Council of Canada (RCDC). This pressure comes as the supply chain is already disrupted by the pandemic, including the absence of workers, in quarantine, at all stages of the production and distribution of goods. Consumers could soon see the upward effect on their bills, while inflation is already impressive.
No shortage in sight
Despite everything, the CCCD wants to be reassuring: food and other essential products will continue to be available. “There is sometimes less variety of certain types of products on the shelves. But there are no shortages,” assures Michel Rochette, president for Quebec of the CCCD.
These remarks contrast with those of some federal members of the Conservative Party, who declared on social media that subjecting truckers to mandatory vaccination will “starve” Canadians.
Moreover, several economic associations, including the Canadian Federation of Independent Business (CFIB), have asked Ottawa to reverse this measure and convince the American government to do the same.
The CFIB, the CCCD and the Quebec Trucking Association (ACQ) have dissociated themselves from the convoy of truckers that left British Columbia and are currently crossing Canada towards Ottawa to protest against compulsory vaccination. Marc Cadieux, president and CEO of the ACQ, felt that the event contributed to disrupting the free movement of goods.
In a press briefing on Wednesday, Prime Minister Justin Trudeau said the supply chain disruptions were due to COVID-19. “The best way to prevent more disruption is to make sure people don’t get sick, that they get vaccinated,” he said.
With The Canadian Press