Trucking with
By: PASH BRAR
Taking Your Losses
Awpxy KricAW dw i^Awl r`Ko I
n trucking, as with every industry, there are unexpected losses which can occur. As I called drivers and owners of trucking companies to discuss the topic of losses, I found everyone to be very passionate and eager to share their experiences. The industry is always changing. One Canadian company I know was hauling wood chips and very successful at it. But then suddenly, the industry changed. Lumber was not in high demand, the USA added tariffs, and no one needed hauling. The company slowed significantly, and was eventually shut down. The trucks and trailers were all sold off. No one could have predicted the change to come at the time, and a once successful company, is lost for good. The transportation business is cyclical. Every few years there can be an expected slowdown for the entire industry. For example, a recession hits, and suddenly the demand for goods and services goes down. There are not as many loads, and not as much equipment bought or sold. Truck and trailer manufacturers will respond accordingly to the demand, and factory production is slowed down. Jobs are lost in trucking for lack of loads, jobs are lost in manufacturing due to less demand, and sales people will suffer a significant decrease in sales and loss of commission salary. Exchange rates affect the sales of trucks, trailers and much heavy equipment. Currently, the Canadian dollar which used to be par to the American dollar, has dropped. When the exchange rate is different, the price of trucks and trailers is also different. The majority of trucks and trailers are manufactured in the USA and Mexico. Once it is brought in to Canada and the exchange rate has changed, the price of the equipment also changes. For example, a truck that was quoted a price last week is now suddenly thousands of dollars more. Consumers take a loss if they didn’t lock in a price at the right exchange rate. Sales people and dealerships take a loss for those who don’t like the new higher price and opt not to buy. Not having proper insurance coverage can account for large losses in transportation. One insurance company I know quoted a low rate to a trucking company. The trucking company didn’t know the rate was low due to a clause that the insurance agent did not point out. The clause stated that the driver of the truck had to have 10 - Pash Brar B.A. Pash is a mobile leasing representative with Auto One Leasing LP in Vancouver. She has a banking, collections and accounting background. She specializes in importing vehicles and trailers from the USA.
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