Trucking capacity in the North America region is expected to tighten, impacting rates and lead times, following the removal of drivers who fail English language tests.
According to Adi Shaked, of Toronto-based FIDI Affiliate Orbit International Moving Logistics, almost 10,000 drivers have been removed from driving in the area after failing tests enforced by US authorities. He added that the results of a nationwide US Department of Transportation audit of non-domiciled commercial drivers’ licences are ‘concerning’. ‘In New York alone, officials have indicated that more than half the drivers reviewed would not have met current standards,’ Shaked said.
‘Meanwhile, enforcement in Canada has picked up around Labour Market Impact Assessment compliance, with several trucking companies facing fines, bans or being forced out of business altogether. While these measures are aimed at improving safety and compliance, they also reduce the number of trucks available in the market.’
Recent penalties for non-compliance have ranged from CAD$15,000 (approximately US$10,920) to CAD$240,000 (US$175,360) and a five-year ban.
‘With thousands of drivers already removed and more potentially affected as audits continue, trucking capacity is likely to become tighter as we head into the new year,’ Shaked said. ‘When capacity tightens, the impact is usually felt in the form of higher rates, reduced flexibility and occasional delays, especially during peak periods.
‘Ensuring booking teams and customers understand what’s happening in the market will help set realistic expectations and explain why trucking may become harder to secure in the months ahead.’