After supply problems, the soaring price of shipping containers, port congestion and increased delivery times, another logistical challenge awaits companies in less than ten days: the upcoming ban for unvaccinated truckers from cross the Canada-United States border.
This issue will have repercussions for both importers and exporters. On the one hand, there may be fewer drivers to pick up, for example, fruits and vegetables from California. On the other hand, exporting companies may have to arm themselves with patience to get their products to their destination.
“It’s another tile, as if we had not had enough since the arrival of COVID-19, launches Stéphan Julien, president of the manufacturer of mobile partitions Moderco. It is major. Between 75 and 80% of production is exported to the United States. We’re talking about three to five full trucks per week. ”
As of January 15, truckers wishing to enter the country must have received their two doses of vaccine against the new coronavirus. The announcement was made in November by the Public Health Agency of Canada. The United States is expected to follow suit by the end of the month.
PHOTO IVANOH DEMERS, PRESS ARCHIVES
A truck at the Canada-US border
According to the most recent data from the Quebec Ministry of Transport, approximately 70% of the value of trade between Quebec and markets in the northeastern United States is transported by truck.
The trucking industry has had to contend with a labor shortage for several years. If drivers cannot cross the border because they are not fully vaccinated, there will quickly be consequences for businesses, believes Julien.
“It is clear that there will be delivery delays,” he said. We are then exposed to additional costs because we have deadlines to meet. This is on top of all the rising prices and the scarcity of the raw material. ”
A decrease in capacity may also increase inflationary pressures.
The business community and the Quebec Trucking Association (ACQ) are in favor of the vaccination, but they implore the Trudeau government and the Biden administration to extend the deadline.
“Everything that has been said has been said to the ministers concerned,” emphasizes Marc Cadieux, president of the ACQ. Accommodation does not seem to be planned. ”
Last month, the Canadian Trucking Alliance questioned six federal ministers in a letter to warn them of the potential repercussions. Everything indicates that the Trudeau government will not budge. In an email on Wednesday, Health Canada reiterated that new measures came into effect on January 15.
PHOTO ALAIN ROBERGE, PRESS ARCHIVES
Moderco, which manufactures movable walls, anticipates delivery delays if truckers cannot get to the United States.
Claudia Rebolledo, from the logistics operations management department at HEC Montreal, also anticipates impacts if there is a decrease in capacity in the industry.
“For example, for car manufacturers, these are the parts that arrive to assemble the vehicles,” she explains. If the parts do not arrive from the United States, the chain stops. Retailers will also have challenges. This is another stumbling block for the people who manage the chain. ”
A minority
According to the ACQ, the vaccination rate in the sector is similar to the provincial picture. In Quebec, nearly 78% of the population is doubly vaccinated. Nationwide, it’s 77%.
Established in Bas-Saint-Laurent, Miralis, which specializes in the manufacture of kitchen and bathroom cabinets, is monitoring the situation closely and keeping its fingers crossed. The company exports around 20% of its production south of the border.
We cannot send invoices to our customers if we are unable to ship. This is something of concern. We have to produce, but we also have to transport our goods.
Valérie Brière, Director of Brand and Communications at Miralis
The company does business with two transport companies. The latter will try to hire new drivers who are fully vaccinated, says Mme Briere. The task is no small feat in a context where there are currently 20,000 vacant positions across the country.
“Yes, another tile is falling on us,” said M.me Briere. It won’t be magic in the coming weeks either. ”
Already changes
On the ground, trucking companies have already started to adapt. Trans-West, which has 600 employees and whose head office is in the borough of Lachine, in Montreal, has already determined which drivers will no longer be able to cross the border.
“As of the end of the week, we know who we won’t be sending to the United States,” says Patrice Gaudet, vice-president, truck management, of the company. The supply of transport will decrease. In all of this, the export capacity of small and medium-sized enterprises will also decrease. ”
PHOTO PROVIDED BY TRANS-WEST
Trans-West will be sending fewer truckers to the United States starting this weekend.
Trans-West trucks make round trips between Quebec and California. The company counts among its customers food distributors. The trips are spread over an average of six days.
Himself vaccinated, Mr. Gaudet nevertheless wonders why governments impose vaccination requirements on truckers when they are often alone behind the wheel of their heavy goods vehicle and their contact is limited.
“At the start of the pandemic, truck drivers were recognized as essential workers,” he says. All of a sudden, outcasts are carrying the virus. This decision is questionable, in my opinion. It is a double talk. ”
Mr. Cadieux indicated that carriers had already been solicited by customers who asked to be privileged in the event of disruption. The fact remains that the available capacity may be reduced in a little over a week.
120,000
Number of Canadian truckers crossing the border. Some 40,000 US license holders also do so.