MOTORTRUCK JAN FEB 2011

Moto M Mo otort oto rrtruck tru tr uck uck

Fleet Executive

C A N A D A ’ S

B U S I N E S S

M A G A Z I N E

JANUARY/FEBRUARY 2011

F O R

F L E E T

TOP Tier Our Annual look at the Pillars of our Industry

O W N E R S

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contents January/February 2011

Volume 80, No. 1

COVER STORY TOP TIER . . . . . . . . . . . . . . . . .

19

What new heights did the nation’s top carriers reach in 2010? Find out in our annual in-depth report on the capacity, capabilities and insights of Canada’s largest carriers.

28

EXECUTIVE SPEAK After months of downsizing their fleets and trimming their costs, Canada’s top trucking executives are now ready for the rebound. Here’s what they expect to see in the turbulent year ahead.

FEATURES

12

TO BUY OR NOT TO BUY With many companies now refocusing efforts to grow revenues, research suggests the Canadian transportation industry will see a rebound in merger and acquisition activity over the next couple years. Douglas Nix of Corporate Finance Associates offers some pointers on the art of successful acquisitions.

14 TOUGH SELL Why Canadian fleets are not warming up to hydrogengenerating systems despite the claimed fuel saving advantages.

34

RISE ABOVE IT ALL There are no holds barred when the real issues behind investing in and implementing information technologies are debated in Part II of our Shipper-Carrier Roundtable.

TOP Tier Page 19

DEPARTMENTS THE VIEW WITH LOU . . . . . . . . . . . . . . . . . . . . . . . . 4 Are the proposed changes to US trucking’s Hoursof-Service rules based on solid science? Editorial director Lou Smyrlis looks for answers for a host of industry accusations.

DASHBOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 TransCore freight index reflects strong November for spot freight market; Canadian General Freight Index reports continued rise in ground transportation costs; and ATA says US truck tonnage drop in November not a concern. Plus: TransCore, Manitoba Transport Institute identify transport trends for spot market.

TAKING CARE OF BUSINESS . . . . . . . . . . . . . . . . . 8 Thinking about retiring, starting a new job or taking some time off? It’s time to familiarize yourself with your company pension options.

MY HR SPACE . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Planning a meeting with your drivers? Consider these eight tips to help lead an effective session.

INSIDE THE NUMBERS . . . . . . . . . . . . . . . . . . . . . 38 How many Canadian manufacturers view green supply chain practices as strategically important? Plus: a look at shippers’ perceptions, expectations and plans moving into 2011.

JANUARY/FEBRUARY 2011

3

Motortruck

Fleet Executive

The View with Lou

is written and published for owners, managers and maintenance supervisors of those companies that operate, sell and service trucks, truck trailers and transit buses.

JANUARY/FEBRUARY 2011

Are the proposed changes to US trucking’s Hours-of-Service rules based on solid science?

A

nyone running into the US should be paying close attention to the firestorm of debate raging over the Federal Motor Carrier Safety Administration’s new proposed Hours-of-Service rules for trucking.

The proposal seems to have support from no quarter. Usually when opposing sides on an issue are critical of proposed legislation, it’s a good indication that legislators have Lou Smyrlis, struck a conciliatory and workable MCILT solution.

But this time, it seems the Editor lou@transportationmedia.ca negative reaction on both sides may only lead to legal battles and the uncertainty that stems from a regulatory quagmire.

Most of the trucking industry concerns I’ve identified to this point centre on revisions that would: add one hour of off-duty time within the 14-hour workday; limit consecutive driving hours to seven; reduce the maximum allowable daily driving time to 10 hours from the current 11; and require drivers to have two periods of rest between midnight and 6 a.m. during a 34-hour restart.

The American Trucking Associations (ATA) claims the proposed changes will be enormously expensive for trucking and the North American economy. So do some prominent shippers. The ATA pointed out the FMCSA itself estimated, just two years ago, costs of more than $2.2 billion if the daily drive time was reduced by one hour and the restart provision was significantly changed. The ATA contends that the FMCSA’s own research previously found that the eleventh hour of driving time does not increase driver weekly hours; is used for flexibility purposes; does not increase driver-fatigue risks; and that eliminating it would promote more aggressive driving (to meet time constraints).

With respect to the 34-hour restart, the ATA says the FMCSA is needlessly departing from past acknowledgement that requiring drivers used to sleeping during the day to now sleep between midnight and 6 a.m. for two consecutive days would actually be less safe. It would disrupt drivers’ circadian cycle and force them to drive more during the day, adding to congestion and again increasing crashes.

Both safety and efficiency must be taken into consideration but, within reason, safety must trump efficiency. But when it does, it must be based on solid 4

science. All stakeholders must avoid the temptation to view truck driving through the eyes of people who work normal hours. It may make perfect sense to someone used to working 9 to 5 that truck drivers should sleep at least two nights in a row between midnight and 6 a.m. before resuming their work schedule. But do we know what that actually does to people used to sleeping during the day or accustomed to sleeping at shifting times? Unless there is solid science that shows such a move would be beneficial, why consider it?

After all, since the current Hours-of-Service rules were brought in back in 2004, the trucking industry in the US has reduced its crash-related fatalities by 33% while both fatality and injury crash rates reached historic low, even during all the freight growth years.

Is the FMCSA attempting to fix something that isn’t broken? That’s what the ATA charges and accuses the government agency of cooking the numbers to make the situation look worse than it really is. The ATA has certainly made some accusations that I would love to see the FMCSA respond to.

The ATA says that in the legislative proposal’s cost-benefit justification, the FMCSA inflated its estimation of the percentage of fatigue-related crashes in two ways. First, it overstated the percentage of single-vehicle truck crashes (which are more likely to be fatigue-related) compared to multi-vehicle crashes.

In fact, the FMCSA doubled the weight given to single-vehicle truck crashes in its large truck crash causation study.

Second, the ATA charges that FMCSA is treating any crash in which fatigue is listed as an “associated factor” as a fatigue-related crash. Yet that contradicts the FMCSA’s own report to Congress, in which it stated: “No judgement is made as to whether any factor is related to a particular crash, just whether it was present.”

Changing the way it looks at the data, the FMCSA has been able to nearly double the number of truckinvolved crashes caused by fatigue. Back in 2008, the FMCSA believed about 7% of truck crashes involved fatigue (even though the best data on fatigue showed only a 2.2% relationship, according to the ATA).

Now, however, the FMCSA has upped that figure to 13% – hence making it look like there is a need to revisit Hours-of-Service regulations.

Unless the FMCSA has solid answers to ATA’s accusations, its numbers, and hence its motives, appear suspect.

MT

VOL. 80

NO. 1

Editorial Director Lou Smyrlis (416) 510-6881 lou@TransportationMedia.ca Managing Editor Adam Ledlow (416) 510-6890 adam@TransportationMedia.ca Features Editor Julia Kuzeljevich (416) 510-6880 julia@TransportationMedia.ca Creative Director Mary Peligra mpeligra@bizinfogroup.ca Advertising Creative Directors Carolyn Brimer Beverley Richards Contributing Editors Ken Mark James Menzies Ian Putzger John G. Smith Carroll McCormick Harry Rudolfs Publisher Rob Wilkins (416) 510-5123 National Sales Manager Don Besler (416) 699-6966 Account Manager Brenda Grant (416) 494-3333 Production Manager Kim Collins (416) 510-6779 Circulation Manager Mary Garufi Video Production Manager Brad Ling Research Manager Laura Moffatt Vice President Publishing Alex Papanou President Bruce Creighton Head Office 12 Concorde Place, Suite 800 Toronto, Ont. M3C 4J2 Motortruck Fleet Executive is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd., a leading Canadian information company with interests in daily and community newspapers and businessto-business information services.

The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent. Motortruck Fleet Executive is indexed by Micromedia Limited.

PUBLICATIONS MAIL AGREEMENT 40069240 Return Undeliverable Canadian Addresses to: Circulation Dept. – Motortruck Magazine, Suite 800 – 12 Concorde Place, Toronto, ON M3C 4J2 USPS 016-317. US office of publication, 2424 Niagara Falls Blvd., Niagara Falls, NY. 14304-0357. Periodical Postage Paid at Niagara Falls NY USA. Postmaster send address corrections to: Motortruck, PO Box 1118, Niagara Falls NY 14304.

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ISSN Number 0027-2108 (print) ISSN Number 1923-3507 (digital)

MOTORTRUCK Member/Canadian Business Press

DashBoard TransCore Canadian Spot Market Freight Index 2006-2010 2006

2007

2008

2009

2010

Percent Change Y-O-Y

Jan

204

173

214

140

171

22%

Feb

179

174

217

117

182

56%

Mar

211

228

264

131

249

90%

Apr

200

212

296

142

261

84%

May

275

280

316

164

283

73%

Jun

271

288

307

185

294

59%

Jul

197

219

264

156

238

53%

Aug

210

235

219

160

240

50%

Sep

190

206

203

180

234

30%

Oct

188

238

186

168

211

26%

Nov

182

227

143

157

215

37%

Dec

159

214

139

168

TransCore Canadian Spot Market Freight Index 2006-2010

TransCore freight index reflects strong November for spot freight market

TransCore’s Canadian Freight Index showed a 37% increase in spot market freight volumes for November compared to the same month last year.

Volumes were also up 2% compared to October, despite the fact the month usually shows a decline following the US Thanksgiving, TransCore notes. November’s results reflect the first month-over-month increase in load posting activity since August and this November’s freight availability was the highest for the month since 2007.

TransCore also noted that capacity improved in November. For the first time since January, equipment postings increased a modest 1% (year-overyear). This follows double-digit decreases through much of 2010.

For October, the index showed a 26% increase in year-over-year spot market load levels. October also had the second highest freight volume compared to the same month over the last five years. However, the index also recorded a 23-point dip in spot freight availability compared to September, which was the third consecutive monthly decline at the time. Load volume levels continue to stay above 200 index points as they have for nine straight months now.

TransCore derives its index from its Loadlink freight-matching service, which includes more than 13 million loads and trucks each year.

As a result of this high volume, TransCore believes its Canadian Freight Index to be representative of the ups and downs in spot market freight movement and provides a historical account of the domestic and crossborder spot market freight movement.

The first four columns in the chart include monthly index values for years 2006 through 2009. The fifth indicates index values for current year 2010. The last column indicates the percentage change from 2009 to 2010. For the purpose of establishing a baseline for the index, January 2002 (index value of 100) has been used.

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MOTORTRUCK

Canadian General Freight Index reports slight drop in ground transportation costs

Results published by the Canadian General Freight Index indicate that after several months of steady increases, the cost of ground transportation for Canadian shippers dropped slightly in October.

The CGFI Total Freight Cost Index decreased by 0.8% in October compared to September, while the Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, decreased 0.92%. The CGFI is still 7.5% above the April low point and 5.3% above last year’s result for the same period.

Notably, average fuel surcharges increased by 6% to 13.77% of base rates when compared to September results. Fuel surcharges increased for the first time in five months, and are beginning to reflect the higher cost of diesel fuel for trucking companies.

In September, the CGFI Total Freight Cost Index increased by 0.4% compared to August, while the Base Rate Index also increased by 0.7%. Average fuel surcharges remained essentially unchanged at 13% for the month.

“We are just starting to see the impact that higher fuel prices will have on shippers and trucking companies, and we expect to monitor this trend through the winter months,” said Doug Payne, president and chief operating officer of Nulogx. “As for the slight decline in base rates, this is not unexpected given the consecutive monthly increases we have seen since last April.”

US truck tonnage drop in November not a concern: ATA

Seasonally-adjusted US truck tonnage took a 0.1% hit in November, according to the latest data from the American Trucking Associations.

In September and October, tonnage increased a total of 28%. The not seasonally-adjusted index was down 3.7% in November.

Compared with November 2009, seasonally-adjusted tonnage was up 3.9%, significantly lower than October’s 6% year-over-year increase, the ATA noted. Year-to-date tonnage is up 5.9% compared to the same period in 2009. “Tonnage increased for two consecutive months in September and October and I don’t expect volumes to rise every month,” said ATA chief economist Bob Costello.

“Additionally, the decrease in November is much smaller than the gains during the previous two months.”

TransCore, Manitoba Transport Institute identify transport trends for spot market

Ontario and the Greater Toronto Area are the sources of and destinations for most spot market freight, according to groundbreaking new research by the University of Manitoba Transport Institute and TransCore Link Logistics. The two organizations recently released preliminary findings from a joint research project looking at Canadian trucking and logistics trends using TransCore’s Loadlink freightmatching data.

Other findings include: postings originating in the US bound for Canada accounted to more than 61% of total freight volume and 39% of equipment volume; outbound postings from Canada to the US accounted for 13% of load volumes and 31% of equipment volumes; and domestic loads within Canada accounted for 21.8% of freight and 30% of equipment.

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1/19/11 4:03 PM

Taking Care of Business

W

What you need to know about your pension when leaving an employer

hether you are retiring, starting a new job or taking time off, leaving an employer can often be an emotional time. Financial concerns and the need to make some important decisions, such as what to do with your pension, may add to your stress level.

If you have been a member of a pension plan for many years, the benefits that you have earned in the plan could likely be the largest source of income you will receive in retirement. Deciding what to do with this income involves many variables and can be quite confusing. And, once you make a decision, it is often irreversible.

To learn more about the options and how to approach this decision, I sat down with Dan Sexsmith, investment advisor at RBC Dominion Securities in downtown Toronto.

Q: If I have just left my employer, what’s the first thing that is going to happen?

A: Prior to or shortly after you have terminated employment, your employer should send you a written summary outlining your company pension plan options. You will be required to select one of the options by a specific deadline and if you don’t act before the deadline, your employer may consider that you have chosen one of the options by default, which may or may not be the best one for you.

Q: What options are usually offered?

A: There are usually four basic options to select from. Firstly, you can decide to stay in the pension and receive your accrued benefits at retirement age. Secondly, you may opt to purchase an annuity that pays you a set cash flow at a predetermined date in the future. Third, you should have an option to “commute” your pension amount to a locked-in retirement account (LIRA).

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Once in this account, you control how the investments are managed. And lastly, if available, you can request to transfer your pension amount to another employer pension plan and participate in that plan.

Q: What are some of the reasons that you may decide to keep your retirement funds with the pension?

A:: The number one reason to stay in a pension is the high degree of certainty of what you will get in retirement. The employer takes on all the investment risk and the benefit paid is predetermined and sustainable. This decision may not be so straightforward if the company is under financial strain and pension funding is at risk.

The next item that I come across is not a financial factor; rather it’s related to benefits coverage such as medical and dental. Some employers continue to offer full benefits if you remain with the pension. This is a benefit that you should not overlook when making the decision to commute your pension. One course of action that eliminates this is if you have a partner that can add you to their benefits plan.

Q: What are some reasons you might decide to commute your retirement funds to a LIRA? A: Getting control is the biggest motivator.

When you are in your retirement years, you have greater control of how you use your savings. This is further enhanced when you consider special “unlocking provisions” that allow you to roll funds from your LIRA to your regular RSP account. Again, this means more control.

Lump sum withdrawals are not possible when in a defined benefit pension plan, but in a LIRA it is (within certain limits). On the other hand, you can decide to take less in a given period to manage around govern-

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation. Mercantile specializes in the sale of mid-market companies.

Mark can be contacted at www.mercantilemergers­acquisitions.com.

ment benefits that have claw backs such as Old Age Security.

Considering your family and their dependency on your income is another big area to assess. If you pass away prematurely, the benefits paid from your pension will be cut by up to 40% for your surviving partner. With a LIRA, you are able to roll the funds into the surviving partner’s RRSP with no tax consequences.

This last item I would note is that if you do decide to move your funds to a LIRA, you take on the risk of running out of money in retirement. To partly address this, you can allocate some funds to specialty insurance products that offer income for life. It’s like buying a mini-pension that creates a minimum floor on your retirement income.

Q: What is your advice for approaching this decision?

A: The first step is to get an advisor involved that has access to pension calculation tools and explore the scenarios. The decision involves many complex variables and the details can be overwhelming without the proper tools. Looking at scenarios and understanding the risks of each decision will be the best way to make your decision. mt

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m

the human edge

y

H

R

tailgate talks Eight tips for leading an effective driver meeting

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leet safety managers need to inform employees about everything from changing regulations to effective driving techniques – and a regularly scheduled driver meeting can offer an ideal venue for such discussions.

A little planning will also ensure that these meetings are able to meet their objectives. Consider the following tips when preparing for your next session:

1. Choose the best setting Like any classroom, the setting of your meeting needs to support the learning process. That means choosing a location that is free of any distractions. Of course, fleets do not always have a dedicated training room, but you can probably find a quieter spot than the middle of an active warehouse.

The layout of the room should also support the training techniques that will be used. For example, theatre-style seating will not be too helpful if each driver needs a writing surface, and any plans for smaller group discussions will require breakout rooms.

Regardless of the setting, everyone should also have a clear view of teaching aids such as brake boards that may be used for related demonstrations. Take a moment to check out the view by sitting in chairs at the back and sides of the room.

2. Explain why this information is important to the driver Every driver in the meeting needs to understand how your information will apply to them.

Professional drivers may be interested to learn that progressive shifting techniques will improve fuel economy, but you will really hold their attention if you can point out that this driving style can help them to secure a fuel bonus. A lesson about inspecting a steering system’s components will also seem to be more relevant if you can describe how any related defects might affect their control of a vehicle.

3. Teach in practical terms While regulations can be read out loud and memorized, practical exercises will help your drivers understand the way this information should be applied. Rather than asking someone to identify the number of hours they are allowed to drive in a given day, for example, give them the opportunity to plan a sample trip and describe where they will stop during any off-duty time.

4. Plan your PowerPoint A PowerPoint presentation can help to support any delivered

To find a HR Essentials workshop in your region contact:

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content, but it needs to be more than a transcript of your presentation.

Incorporate no more than six words per line, add charts and illustrations that support your points, and pick contrasting colours to ensure the text is as legible as possible. In general, you should also be changing slides no more than once per minute.

Meanwhile, hand out hard copies of these slides to give drivers a place to take notes, creating some valuable reference material in the process.

5. Learn before you deliver Nothing will lose the attention of a group more quickly than a trainer who insists on reading from the pages of a textbook or regulation. Every presentation should come across like a conversation. Limit your speaking notes to a point-form list that will remind you about any key discussion points.

6. Test and measure A simple quiz will help you to identify the drivers who fail to grasp the information that is delivered at these meetings. If the majority of drivers are failing to provide the correct answers, you may want to reconsider your teaching methods.

7. Make sure all managers deliver the same message If drivers are being told to follow a certain procedure, their supervisors need to hear the same message. It doesn’t make sense to stress the importance of Hours-of-Service rules and fatigue management techniques if a rogue dispatcher is encouraging employees to bend the regulations.

8. Follow your agenda Everyone’s time is valuable, and it will be up to you to keep the discussions on topic. Trainers need to ensure the flexibility to answer questions that emerge during the course of a meeting, but a formal agenda will also help to ensure that all of the related mt topics are addressed.

Funded by the Government of Canada’s Sector Council Program, the Canadian Trucking HR Council (CTHRC) is an incorporated not-for-profit organization that helps attract, train and retain workers for Canada’s trucking industry. For more information, visit www.cthrc.com.

AMTA www.amta.ca

PEI Trucking Sector Council www.peitsc.ca

Ontario Trucking Association www.ontruck.org

Trucking Human Resources Sector Council, Atlantic info@thrsc.com

S

p

a

c

e

inside the numbers

415,065

EMPLOYMENT GROWTH IN FOR-HIRE TRUCKING 2000-2008

388,340 379,872

344,091 318,732

312,893

356,933

327,924

326,876

Company Drivers

127,232

119,998 112,813

112,359 104,971 90,052

86,280

82,493

89,653

To t a l Employees Ye a r

2000

2001

2002

2003

2004

2005

2006

2007

2008

LABOUR ACTION IN TRUCKING – NUMBER OF PERSON DAYS LOST 19,950

LABOUR ACTION IN TRUCKING – NUMBER OF WORKERS INVOLVED 1,218

10,020

522 103 Ye a r

64

0

43

168

6,720 9

0

80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Workers involved

630

120

0

990

10

0

240

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ye a r

Number of person days lost

LABOUR ACTION IN TRUCKING: ALL QUIET ON THE FRONT? There are more than 400,000 employees in the Canadian for-hire sector, according to Human Resources Canada, and of those, 127,000 are company drivers. Despite the difficulty experienced by trucking companies in attracting qualified drivers and other professionals, the industry has experienced significant labour growth over the past decade, growing by low double digits in 2004 and 2008 before shrinking during the recession of the past two years. Such large numbers of employees in a sector so vital to the economy creates the potential for disruptive labour action, yet trucking has avoided such disruption for much of the decade. After a rough start to the decade, where nearly 20,000 person days were lost during 10 work stoppages, labour action in Canada has eased considerably. There were no reportable person days lost in 2004 and 2008 and just a handful in 2007. In fact, trucking has enjoyed the most peaceful labour relations of any mode for most of the decade.

Saskatchewan Trucking Association www.sasktrucking.com

British Columbia Trucking Association www.bctrucking.com

Manitoba Trucking Association www.trucking.mb.ca

Camo-route www.camo-route.com

Or Contact the Canadian Trucking Human Resources Council, info@cthrc.com or 613 244 4800 JANuArY/FEBruArY 2011

11

Profitability

To buy or not to buy?

Some pointers on the art of successful acquisitions

O

ver the past three years, we have seen a marked change in the level of acquisition activity in the Canadian transportation and logistics space. Looking backwards, the reasons are fairly obvious.

Starting in mid-2008 and carrying through 2009, as the US economy softened, most players started to see a significant and accelerating decline in shipping volumes and rates. Year-over-year, it was not uncommon to see revenue declines of 50% or more. During this time, uncertainty was running amok, and most presidents we talked to had no idea whether their operations had bottomed out or if there was still more bad news coming.

With the falling revenues came tighter credit and less cash availability. Amid this uncertainty, almost all management teams opted for prudence and conservatism. Survival of their business became the watchword in almost every discussion we had with Canadian market leaders.

As it always happens, things change. In early 2010, the North American economy stabilized and a new “normal” business activity level emerged. For the companies that survived the fallout, rates firmed and revenues started to climb.

As we move into 2011, many companies are now refocusing efforts to both grow revenues and also utilize surplus capacity that was created as they streamlined operations. At the same time, Canadian lenders are demonstrating a willingness to provide predictable financing to transportation and logistics businesses.

Our research predicts that the Canadian transportation and logistics industry will see a strong rebound in merger and acquisition activities over the next two years. With this as background, it might be helpful to talk about some of the important lessons we have learned about developing and executing a successful strategic acquisition plan in transportation and logistics.

Start your acquisition program with a hard look at your own business. Determine what your customers are asking for that you can’t deliver. Check out what your competitors are doing to set themselves apart from you. Ask yourself, what is required to take this company to the next level? Do you have significant capacity in certain operational areas? Do you have a core competency that can be leveraged? (Contact the writer for a copy of their free corporate assessment questionnaire).

12

MOTORTRUCK

From this will emerge a picture of some of the key criteria of an ideal acquisition.

Keep in mind that just because a business is for sale doesn’t mean you should buy it. The absolute bedrock question that you must ask is “Why?” We have found that if there is not a compelling answer to the question, “Why are we doing this acquisition?” then you shouldn’t do it. If the benefits to your organization are not obvious, save your money and keep looking for something that really fits.

Finding those ideal targets takes work and time. In those cases, where completing a strategic acquisition is absolutely vital to a company, sophisticated strategic buyers will often hire an investment banker to find and contact acquisitions that fit the key criteria.

Just because something is a bargain, doesn’t make it a smart acquisition. The old adage that “quality is remembered long after the price is forgotten” rings especially true in corporate acquisitions. When you acquire a company, you are making a long-term investment, and price should never be the primary criteria if an acquisition is sound.

The flipside of this is that paying a reasonable premium to acquire the perfect-fit operation is good business. When looking at the pricing of these rare opportunities, remember the saying “extinct is forever.”

Once someone else buys thast business, you can’t – it is now “extinct.”

Learn to differentiate between price and structure. Price means what you will pay, structure means how you will pay it. Reasonable transaction structures can be used effectively to bridge valuation differences or deal with uncertain outcomes (e.g. new customers, outstanding bids, uncertain future earnings). When dealing with structure, complexity is not your friend – keep it simple and understandable.

Put a strong acquisition team in place before you start. Acquisitions are always time-consuming and complicated. This team should include a senior member of your management team, a lawyer with extensive experience in acquisitions, your chartered accountants and an investment banker. It might seem expensive, but in the end, it always saves you time and money.

MT Douglas Nix, CA, is vice-chairman of Corporate Finance Associates, based in Oakville, Ont., and chairman of CFA’s Transportation and Logistics Industry Group. He has completed many Canadian transportation and logistics transactions over the past 15 years and can be reached at doug.nix@cfaw.ca

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1/19/11 4:57 PM

GreentoGold

tough sell Why Canadian fleets are not warming up to hydrogen-generating systems despite the claimed fuel saving advantages

By Ken Mark

D

espite constant pressure to reduce fuel costs and particulate emissions, many carriers are ignoring an innovation that could fix both problems.

Hydrogen-generating systems (HGS) have been retrofitted on a select group of trucks in Canada, the US and elsewhere for several years. However, recently reengineered products from two major Canadian vendors, Hy-Drive Technologies and Dynamic Fuel Systems (DFS), continue to face an uphill struggle to gain credibility and sales.

Carriers do not believe there is enough of a business case for them to adopt the new technology. “They are not interested in reducing fuel consumption because they can pass on cost increases to shippers through fuel surcharges,” charges Andrew Lindsay, Mississauga-based vice-president of engineering and technical development at Hy-Drive Technologies.

As well, diesel engine makers remain on the sidelines. “If they can get four mpg out of their equipment, which is close to what their competitors can do, that’s fine with them,” says Glenn Windrem, president of Glenn Windrem Trucking in Peterborough, Ont., and an early Hy-Drive convert. “They will only start doing something once others can get six mpg.”

Ignorance also plays a role. “Many people do not understand how the technology works or appreciate its potential benefits,” says Grove Bennett, Pickering,Ont.-based vicepresident of DFS. “It all boils down to reli-

ability, repeatability and return on investment.”

DFS recently announced the launch of its reengineered flagship HydraGen product that is lighter, more compact and less expensive than previous systems. It expects to begin development and full-scale commercialization in early 2011.

At the same time, its Management Discussion and Analysis (MD&A) filing with Ontario security regulators included the statement, “We may not be able to generate sufficient cash flows to fund our operations and make adequate capital investments.”

The science behind HGS is simple. In basic terms, the units – about the size of a large automotive battery – are securely rack-mounted behind the tractor cab. A hose connects it to a tank of distilled water. An electric current passing through the water breaks it down into hydrogen and oxygen gas. These are then fed into the engine intake where they enhance the combustion of diesel fuel resulting in a cleaner, more complete burn. That creates more engine thrust that improves fuel efficiency as well as reducing greenhouse gas (GHG) and particulate (black smoke) emissions.

Hy-Drive’s updated units will deliver overall fuel savings of 10.47% and lower average particulate emissions by 39.53%, according to Professional Services Industry (PSI), an independent, third-party which verified the results. It used SAE (Society of Automotive Engineers) standards to have Technology and Maintenance Council (TMC) of the American Trucking Associations to conduct the tests.

PSI’s report concluded: “The Hy-Drive

SPONSORED BY:

14

MOTORTRUCK

HGS Technology does consistently improve fuel economy while reducing dirty emissions.”

In January, Hy-Drive signed an agreement with GreenCell Technologies, making it the exclusive distributor of its HGS series of hydrogen gas generators for the diesel truck market in Canada and the US. “Our intent is to introduce a per-mile usage fee to replace our former outright purchase plan,” says John O’Bireck, Hy-Drive’s vice-president of sales.

In the absence of any viable government subsidies or incentives, the plan eliminates the up-front capital costs related to buying and implementing the system.

However, winning over skeptical buyers remains a challenge. The prevailing attitude in the carrier community is “show me.”

According to Bennett, the majority of fleet owners support the technology. “But for contract drivers, it’s about 50-50,” he says. “For fleet or salaried drivers, it’s 70-30 against.”

The key stumbling block for vendors is how to demonstrate and measure consistent, real-world performance. That’s because of the huge number of variables involved.

O’Bireck quotes a Walmart executive who says that it monitors 43 factors related to engine performance.

For example, Windrem’s results are all over the map. Sometimes, his trucks enjoy 20% or better fuel efficiency. At other times, it’s zero. Every truck in his fleet racks up high annual mileage – about 100,000 miles – delivering aggregate in short regional trips of 30 miles each way to job sites. They make eight or nine trips per day. There is no stan-

dard trip; every one involves different variables – routes, weather conditions, drivers, etc.

Then there are technical issues. Diesel engines operate on compression/combustion principles, so their performance also varies greatly depending on the ambient temperature, humidity and pressure, etc. To deliver more consistent performance, Hy-Drive introduced innovative software: an integrated management module (IMM). In response to data received wirelessly from the engine through Bluetooth technology, the IMM uses algorithms to calculate the proper amount and timing of hydrogen bursts injected into the combustion chamber to ensure the optimum burn under prevailing conditions.

O’Bireck describes the hydrogen blast as an accelerant similar to a barbecue fire starter that helps get the charcoal to burn and create heat for cooking. He also states that the IMM has nothing to do with engine’s engine control module (ECM). In that way, there is no possibility of interfering with the engine itself which could result in voiding the manufacturer’s warranty.

The reengineered units have eliminated several shortcomings that plagued earlier models. For example, Hy-Drive solved the problem of water vapour freezing in the hoses and pumps during cold spells by intro-

ducing heat sensors that kick in only when the temperature drops. The addition of a vibration table provides greater unit stability and improved safety by preventing hydrogen leaks. As well, it “ruggedized” the casing, making it sturdier and preventing cracking with fusion rather than manual welding.

Currently sold as a bolt-on, aftermarket product, HGS units may receive the ultimate market endorsement whenever original equipment manufacturers (OEMs) start installing them at the factory. But that day appears far away. “HGS is a specific product targeting North American diesel engines,” says O’Bireck. “To accommodate them all, we would need to change the unit shape and related software for each engine design.” HyDrive units are currently suitable for pre2007 Caterpillar C-12, C-13 and C-15 engines. Next on the list are Detroit Diesel and Cummins.

“We hope to widen the HGS market through our recent GreenCell agreement,” he says. “That includes proof-of-concept trials with OEMs in North America as well as exploring new opportunities in India and China.”

HGS units are considered safe even though hydrogen and oxygen in certain ratios can be highly explosive. “Since none of the

gas is stored, I believe they are much safer than LNG tanks,” says Bennett. “Hydrogen and oxygen are used immediately after they are produced. Otherwise, they are allowed to escape harmlessly into the atmosphere.”

Although most of the attention is focused on HGS’s prowess in reducing fuel costs, it can also deliver major environmental advantages. But when it comes to reducing particulate emissions, Windrem puts more faith in HGS technology than in new EPAapproved engines.

He contends that while such engines have reduced emissions, they have not necessarily increased fuel efficiency. In fact, he claims that they burn more fuel. Although the updated models have reduced carbon and other emissions, he attributes that to better particulate filters and electronic mufflers.

Science supports Windrem’s point of view. Post-burn mitigation involve catalytic converters that use urea (ammonium) to break down the nitrogen oxide emissions or smog into less noxious nitrous oxide and carbon dioxide. Filters trap the black smoke. But the particles are large enough to clog the filters so they are recycled through the combustion chamber for a second burn to make them small enough to pass through.

Continued on page 37

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Making

Cleaner

Cities

The Government of Canada is committed to reducing Canada’s greenhouse gas emissions.

The ecoENERGY for Fleets program, offered by Natural Resources Canada, introduces fleet managers and owneroperators to energy-efficient practices that can reduce fuel consumption and emissions. FleetSmart, a component of this program, offers free practical advice on how energyefficient vehicles and business practices can reduce fleet operating costs, improve productivity and increase your competitiveness.

Proper training can go a long way toward helping drivers adopt habits that conserve fuel, and the benefits can be realized by all drivers, whether they are experienced or new to the job.

Training provides drivers with a number of easily applied fuel-efficient techniques, including: • avoiding speed fluctuations when possible by using cruise control; • progressive shifting; • anticipating traffic to avoid unnecessary braking; • accelerating gradually;

gases per driver each year (based on 100,000 km driven with 41 L/100 km initial fuel economy and a diesel price of $1 per litre).

Training for fuel efficiency also works best when it is conducted regularly over a driver’s career. Studies show that the impact of driver training decreases over time as drivers forget what they learned and slip back into old habits. This can be minimized through the use of monitoring devices and gauges that display current and average rates of fuel economy and through periodic refresher courses. In most cases, the truck’s electronic control module has settings to limit or monitor unnecessary idling, vehicle speed and other factors. These methods and devices can lead to further improvements in fuel efficiency.

SmartDriver in the City will play an important role for a successful training experience. Equipping your vehicles with technologies for fuel efficiency — without proper driver training — could be wasting your time, money and efforts.

• limiting unnecessary vehicle idling; • driving at low engine RPMs; and • reducing the use of accessories such as air conditioning.

Research conducted annually by Transportation Media and the Canadian Trucking Human Resources Council shows that about 40% of Canadian truck drivers and owner-operators receive training on fuel-efficient driving. Although that’s a good start, fuel efficiency training stands behind other areas of instruction within the industry, such as: • regulations, with 62% receiving training; • company policies (63%); • completing paperwork (58%); and • defensive driving (47%).

Fuel savings from driver training can range from 5% to 10%.

Fuel savings of 5% translate into a savings of $2,000 in fuel costs and a reduction of eight metric tonnes of greenhouse

Making Cleaner Cities Advert_Jan25.indd 1-2

For more information or to request the SmartDriver in the City Instructor’s Guide, visit FleetSmart.nrcan.gc.ca Or write to: Natural Resources Canada Office of Energy Efficiency 885 Meadowlands, 3rd Floor Ottawa, Ontario K1A 0E4 Fax: 613-960-7340 Email: fleetsmart@nrcan.gc.ca

Pour des villes Plus

éCologiq ues

Le gouvernement du Canada s’engage à réduire les émissions de gaz à effet de serre produites par le Canada.

Le programme écoÉNERGIE pour les parcs de véhicules de Ressources naturelles Canada vise à promouvoir auprès des gestionnaires de parcs de véhicules et routiers autonomes les pratiques éconergétiques visant la réduction de la consommation de carburant et des émissions. Écoflotte, un volet de ce programme, fait découvrir gratuitement comment les véhicules et les pratiques commerciales éconergétiques peuvent réduire les coûts d’exploitation des parcs de véhicules, améliorer la productivité et accroître la compétitivité.

Une formation adéquate est un investissement qui porte ses fruits lorsqu’il s’agit d’aider les conducteurs à adopter des habitudes de conduite qui permettent d’économiser le carburant et tous les conducteurs – novices ou d’expérience – peuvent en tirer des avantages.

La formation permet aux conducteurs d’apprendre comment mettre en pratique de nombreuses techniques de conduite éconergétique, dont : • éviter les fluctuations de vitesse à l’aide d’un régulateur de vitesse, lorsque cela est possible • les embrayages de vitesse progressifs • anticiper les flots de circulation pour éviter le freinage inutile • l’accélération graduelle • la réduction de la marche au ralenti inutile des véhicules • la conduite à un faible niveau de tours par minute du moteur • la réduction de l’utilisation des accessoires comme la climatisation de l’habitacle de conduite Des recherches menées annuellement par les médias de transports en collaboration avec le Conseil canadien des ressources humaines en camionnage démontrent qu’environ 40 % des conducteurs de camions canadiens et routiers autonomes suivent une formation sur la conduite éconergétique. Même s’il s’agit d’un excellent point de départ, la formation sur l’efficacité du carburant demeure à l’arrière-plan d’autres secteurs de formation au sein de l’industrie comme : • les règlements, car 62 % suivent une formation sur la sécurité routière • les politiques de l’entreprise (63 %)

• remplir des formulaires (58 %) • la conduite défensive (47 %).

Les économies de carburant réalisées au moyen de la formation des conducteurs varient de 5 à 10 %. Des économies de carburant de 5 % signifient des économies de 2 000 $ en coûts liés au carburant et une réduction de 8 tonnes métriques de gaz à effet de serre par conducteur chaque année (selon une distance de 100 000 km parcourus avec une consommation de 41 L/100 km initiale et des économies de carburant et un prix du diesel de 1 $ le litre).

Une formation sur l’efficacité du carburant est encore plus efficace lorsqu’elle est donnée régulièrement tout au long de la carrière d’un conducteur. Des études ont démontré que les bienfaits découlant de la formation des conducteurs diminuent avec le temps, car les conducteurs oublient ce qu’ils ont appris et reprennent leurs vieilles habitudes de conduite. On peut réduire cet effet au moyen de dispositifs de suivi et de jauges qui affichent les économies courantes et moyennes de carburant et au moyen de cours de recyclage périodiques. Dans la plupart des cas, le module de commande électronique des camions peut être réglé afin de limiter ou de surveiller la marche au ralenti inutile, la vitesse du véhicule et les autres facteurs significatifs.

Ces méthodes et dispositifs permettent d’augmenter encore davantage l’efficacité du carburant.

Conducteur averti dans la ville jouera un rôle important en vue d’une expérience de formation réussie. Installer des technologies d’efficacité du carburant sur vos véhicules – sans une formation des conducteurs adéquate – serait une perte de temps, d’argent et d’efforts.

Pour plus de renseignements ou pour demander un guide du formateur Conducteur averti dans la ville, visitez EcoFlotte.rncan.gc.ca Vous pouvez également écrire à : Ressources naturelles Canada Office de l’efficacité énergétique 885, promenade Meadowlands, 3e étage Ottawa (Ontario) K1A 0E4 Télécopieur : 613-960-7340 Courriel : ecoflotte@rncan.gc.ca

1/25/11 5:13 PM

LIGHTWEIGHT ENGINEERING DESIGNED TO BULK UP PROFITS. INTRODUCING THE NEW MACK® PINNACLE ™.

TAKE A TOUR AT WWW.MACKTR UCKS.COM ©2006 Mack Trucks, Inc. All rights reserved.

ALL SCIENCE. NO FICTION.

TOP Tier Our Annual look at the Pillars of our Industry

Sponsored By:

PEOPLENET CANADA MACK CANADA and CASTROL HEAVY DUTY LUBRICANTS

From the Sponsors While Castrol is well known to most people around the world as the lubricant of choice for their car, pick-up truck or SUV, some people may not be as familiar with Castrol’s groundbreaking products for the Commercial/Heavy-Duty marketplace. Whether on-road or off-road, Castrol has developed a complete line of unique commercial lubricants that is second to none when it comes to protecting the vehicle investment of the owner/operator, commercial fleet or mining corporation.

Castrol’s Heavy Duty lubricants are designed for the single purpose of making your fleet as reliable and profitable as possible. By understanding the increasing technological demands of today’s engines, and working directly with OEM manufacturers, Castrol has employed the latest information, along with our extensive knowledge of commercial lubricants to develop a full line of products to help you get the most out of your equipment. Congratulations to all Top Tier 100 fleets highlighted and continued success in 2011.

Mack Trucks Canada has been serving the needs of the fleet market in Canada since 1921.

Over the years, Mack has built up an extensive dealer network of almost 100 sales, parts and service locations across the country.

Many truckers and fleet owners started their careers and businesses with Mack B models and R models. The Mack Vision models also became very popular in the 1990s and now Mack has introduced a new engine and a new model that replaces the Vision.

The Mack Pinnacle, with its redesigned interior and bigger cab, is an ideal fleet truck that is available in both daycab and sleeper configurations. The all new Mack MP series of engines with ClearTech emissions technology provides up to 505 hp and better fuel economy. They are well suited for both local and long-haul applications. Mack is also one of the first truck manufacturers to make anti-roll stability a standard feature on all of its 2008 and later highway truck models.

PeopleNet increases the efficiency, improves the safety, and advances the profitability of fleet owners through the use of highly configurable and innovative solutions. PeopleNet’s suite of products enable an ever-growing set of high-value applications, including route management, supply-chain communications, end-to-end vehicle management, driver services, and safety, security and compliance. Anticipating your needs before potential problems happen. That’s the level of commitment you can expect from PeopleNet. It goes beyond the support involved in implementing a system. From project management to conducting a complete process flow analysis and implementation, PeopleNet can help improve operations on any level.

20

motortruck

O

TOP TIER

Your annual in-depth report on the capacity, capabilities and insights of the nation’s largest carriers.

ur sixth annual Top Tier report, offering a comprehensive look at the nation’s largest for-hire carriers, is a snapshot of an industry in the midst of a much awaited resurgence. After enduring two years of economic recession and almost four years of shrinking freight volumes, the nation’s top carriers are reporting growth once again.Our annual survey of Canadian shippers found that 48% are expecting to increase their use of TL services in 2011 while 43% expect to increase their use of LTL services. Carrier executives appear to be on the same page with 48% expecting to see an increase in freight volumes this year while the majority of the remainder expects to see freight volumes stay at 2010 levels.

There is good evidence that the market will support such optimism. Canada’s domestic economy is proving unusually resilient, shielding us from the ravages faced in the US the last two years. Moreover, the US economy is getting a boost from additional stimulus, worth 1.1% of GDP this year. The US economy is now expected to rise by 3.2% in 2011, about a full percentage point higher than some leading forecasts from a few months ago. Overall growth in Canada is now forecast to reach 2.7% in 2011 thanks in great part to better trade performance. Export growth, an area whose troubles the last two years has greatly affected the profit levels of many of the nation’s largest carriers, is now projected to grow 5.8% in 2011.

As we noted with last year’s Top Tier list, the freight recession spawned a cutthroat environment which humbled even the proudest and most progressive of motor carriers. And this has had an impact on the names you will see included in the Top Tier list. Working through the list you will also once again notice reduced equipment counts. Across the country, it is estimated that the Canadian fleet has shrunk by as much as 15% over the past couple of years and we are also running one of the oldest fleets in recent memory.

And while our research shows that shippers feel the TL sector is now close to balanced capacity they feel LTL remains plagued by a capacity overhang.

Further capacity reductions in LTL may be forthcoming if the North American economy does not rebound faster and stronger than is currently the case.

Reduced capacity and a more conservative approach to fleet size growth is already helping carriers improve their margins through better asset utilization. If they can stick to their guns and if the economic rebound gains strong momentum towards the end of 2011 as expected , the resulting strain on capacity will also help boost rates. It may also cause the largest carriers to resume their drive to consolidate the industry.

Many of the fleets have emerged from the economic downturn leaner but also more resilient. To help you keep up with the latest developments, in the following pages you will find detailed and up-to-date information about the capacity and capabilities of the 100 largest for-hire motor carriers in Canada and the Next 25. This exclusive data is from annual research conducted on behalf of our sister company, BIG Transportation Media Research.

An additional feature is a report on the fleets owned by four of the largest and most aggressive acquirers in recent years, Transforce, Contrans, Calyx and Day & Ross.

And once again this year, some of the industry’s most influential executives share their insights on the current situation and the issues they will face in the future.

This comprehensive guide is not intended as a mere tally of vehicle counts. In fact, we have chosen not to list the top 100 carriers by size. The top 100 carriers are listed in alphabetical order because we believe that after a certain threshold, optimum fleet size is a reflection of the different markets these fleets are meant to serve.

I would also like to thank the sponsors of our Top Tier report, Peoplenet Communications, Mack Canada and Castrol who continue with their support. Their involvement is instrumental in helping us deliver such a comprehensive report.

We hope our report serves as a tool not only for the largest carriers to keep tabs on their competitors but also as a tool for the smaller and medium-sized fleets to contrast their buying strategies with the industry’s largest and gain a fuller understanding of industry issues as they begin to rebuild their companies.

Lou Smyrlis Editorial Director

JANuArY/FEBruArY 2009

21

Company Name

Headquarters

Customer Line

Web Address

Operating Area

Apex Motor Express Armour Transportation Systems Arnold Bros. Transport Arrow Transportation B&R Eckel’s Transport Big Freight Systems Inc. Bison Transport Inc. BLM Group Bruce R. Smith Ltd. Byers Transport (TransForce) Calyx Group of Companies Calyx Transportation Group (Calyx) Canada Cartage System Canadian Freightways (TransForce) Canpar Transport (TransForce) Caron Transportation Systems CAT Inc. Celadon Canada CF Byers Transportation System Inc. * Challenger Motor Freight Clarke Road Transport Inc. Clarke Transport Inc. CN TL Consolidated Fastfrate Inc. Contrans Group Inc. Cooney Group of Companies Day and Ross (Day and Ross) Day and Ross Dedicated Logistics (Day and Ross) Day and Ross Transportation Group DCT Chambers Trucking Erb Group of Companies Fastrax (Day and Ross) Fluke Transportation Group Gibson Energy ULC Grant Transport Grégoire (TransForce) Groupe Boutin Groupe Guilbault Ltee.

H & R Transport Limited hbc Logistics Highland Transport (TransForce) Hyndman Transport International Truckload Services (ITS) JC Germain (TransForce) Kindersley – Siemens Transportation Group Kingsway Transport (TransForce) Kleysen Transport Kriska Laidlaw Carriers Tank LP (Contrans) Laidlaw Carriers Van LP (Contrans) Landtran Systems Inc. Mackie Moving Systems MacKinnon Transport Manitoulin Transport Group Maritime-Ontario Freight Lines Meyers Transport Ltd. Midland Transport Ltd. Muir’s Cartage (Calyx) Mullen Trucking LP Musket/Melburn Group Normandin Transit Northern Industrial Carriers Paul’s Hauling Ltd. Penner International Purolator Courier QuikX Group of Companies Reimer Express Lines Ltd. Robert Transport (1973) Ltd. Rosedale Transport Rosenau Transport Sameday Worldwide (Day and Ross) Schneider National Carriers Seaboard Harmac Select-Thibodeau (TransForce) SGT 2000

Brampton, ON Moncton, NB Winnipeg, MB Richmond, BC Bonnyville, AB Steinbach, MB Winnipeg, MB Kitchener, ON Simcoe, ON Edmonton, AB Concord, ON Concord, ON Toronto, ON Calgary, AB Mississauga, ON Sherwood Park, AB Coteau du Lac, QC Kitchener, ON Edmonton, AB Cambridge, ON Halifax, NS Concord, ON Concord, ON Woodbridge, ON Woodstock, ON Belleville, ON Hartland, NB Brampton, ON Hartland, NB Vernon, BC New Hamburg, ON Florenceville, NB Hamilton, ON Calgary, AB New Hamburg, ON Plessisville, QC Plessisville, QC Ste-Foy, QC Lethbridge, AB Mississauga, ON Markham, ON Wroxeter, ON Belleville, ON Trois-Rivieres, QC Saskatoon, SK Mississauga, ON Winnipeg, MB Prescott, ON Woodstock, ON Guelph, ON Edmonton, AB Oshawa, ON Guelph, ON Gore Bay, ON Brampton, ON Belleville, ON Dieppe, NB Concord, ON Aldersyde, AB Mississauga, ON Napierville, QC Edmonton, AB Winnipeg, MB Steinbach, MB Mississauga, ON Mississauga, ON Winnipeg, MB Rougemont, QC Mississauga, ON Edmonton, AB Mississauga, ON Guelph, ON North York, ON Montreal, QC St-Germain-de-Grantham, QC

800-895-APEX 506-857-0205 800-665-8085 604-324-1333 780-826-3889 800-665-0415 800-GO-BISON 800-265-2743 888-277-6484 780-440-1000 905-695-3841 905-695-3841 800-268-2228 888-868-7923 800-387-9335 780-449-6688 800-363-5313 800-265-6467 800-661-6953 800-265-6358 866-425-2753 800-387-3558 888-MOVINCN 800-268-1564 800-819-5259 613-962-6666 866-DAY-ROSS 905-799-6500 866-DAY-ROSS 250-549-2157 800-665-2653 506-392-2600 800-263-4843 403-206-4000 800-668-4481 819-362-8813 800-267-4509 800-361-2093 403-328-2345 416-644-2700 800-268-1729 800-265-3071 800-267-1888 x 175 819-370-3422 800-667-8556 800-856-5559 888-488-6878 800-461-8000 800-465-8265 800-263-8267 780-468-4300 800-565-4646 800-265-0444 800-461-1168 905-792-6100 800-565-3708 888-MIDLAND 800-646-2013 800-661-1469 905-823-7800 800-667-8780 780-465-0341 204-633-4330 866-729-7134 888-744-7123 800-461-8023 877-330-3321 800-361-8281 877-588-0057 800-371-6895 905-676-3750 800-461-3168 416-642-0515 800-463-7334 800-363-4216

www.apexltl.com www.armour.ca www.arnoldbros.com www.arrowtransportation.com www.breckels.com www.bigfreight.com www.bisontransport.com www.blm.com www.brsmith.com www.byerstransport.com www.calyxinc.com www.calyxinc.com www.canadacartage.com www.cfmvmt.com www.canpar.com www.carontransport.ca www.cat.ca www.celadoncanada.com www.byerstransport.com www.challenger.com www.clarkeroad.com www.clarkelink.com www.cn.ca www.fastfrate.com www.contrans.ca www.cooney.ca www.dayross.ca www.dayross.ca/dedicated www.dayrossgroup.com www.dctchambers.com www.erbgroup.com www.fastrax.ca www.fluke.ca www.gibsons.com www.granttransport.com www.transportgregoire.com www.boutinexpress.com www.groupeguilbault.com www.hrtrans.com www.hbc.com www.highlandtransport.com www.hyndman.ca www.itstruck.ca www.transforce.ca www.siemenstransport.com www.kingswaytransport.com www.kleysen.com www.kriska.com www.contrans.ca www.contrans.ca www.landtran.com www.mackiegroup.com www.mackinnontransport.com www.manitoulintransport.com www.m-o.com www.shipmts.com www.midlandtransport.com www.muirscartage.com www.mullentrucking.com www.musket.ca www.normandintransit.com www.nictrucking.com www.paulshauling.com www.penner.ca www.purolator.ca www.quikx.com www.reimerexpress.com www.robert.ca www.rosedalegroup.com www.rosenau.org www.sameday.ca www.schneider.com www.harmactransportation.com www.select-thibodeau.com www.sgt2000.com

Multi-Regional Multi-Regional, North America, International Multi-Regional, North America North America Multi-Regional North America Multi-Regional, North America, International North America Multi-Regional, North America Multi-Regional, North America * See individual fleet listings North America Multi-Regional, North America Multi-Regional, North America, International Multi-Regional, North America, International Multi-Regional, North America Multi-Regional, International International Multi-Regional, North America, International Multi-Regional, North America, International North America Multi-Regional North America North America * See individual fleet listings Multi-Regional, North America North America North America * See individual fleet listings Multi-Regional, North America Multi-Regional, North America North America North America Multi-Regional, North America Multi-Regional, North America North America Multi-Regional, North America Multi-Regional, North America International Multi-Regional, North America Multi-Regional, North America North America Multi-Regional, North America, International North America North America Multi-Regional North America Multi-Regional, North America North America North America International North America North America International Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America North America Multi-Regional, North America North America North America Multi-Regional, North America North America International North America Multi-Regional, North America, International Multi-Regional, North America Multi-Regional, North America Multi-Regional North America, International International North America Multi-Regional, North America North America, International

LEGEND: THE TOP 100 were chosen according to vehicle counts which included straight trucks, tractors, trailers and intermodal containers domiciled in or controlled from Canada. Top 100 carriers are listed in alphabetical order. Both parent company and holdings shown if large enough. Companies not reporting new capacity figures for more than 2 years are removed from the list.

A capacity and capability guide for the country’s largest motor carriers Primary Service D, I, LTL, TL D,E,F,I,L,LB,LTL,P,TC,TL D,E,F,L,P,TC,TL TL D,DB,E,F,I,L,LB,LTL,TC,TL F,I,L,TL D,E,I,L,TC,TL D,E,F,LTL,TC,TL D,F,TC,TL E,F,LTL,TL E,I,TC D,DB,E,F,HG,L,LB,LTL,TL E,F,I,L,LTL,TC,TL P D,DB,F,L,LB,TL D,DB,E,F,I,LTL,TC,TL,VC D,I,LTL,TL E,I,LTL,TL D,DB,E,F,I,L,LTL,TC,TL D,F,I,TL D,F,I,L,LTL,TC,TL D,E,F,HG,I,L,TC,TL,VC D,E,I,LTL,P,TC,TL D,DB,F,I,TL LTL,TC,TL D,L D,DB,F,LB,TL D,E,L,LTL,TC,TL F,I,TC,TL,VC D,DB,E,F,L,LTL,TC,TL DB,LB D,F,I,L,LTL,TC,TL TL D,E,F,I,L,LTL,TC,TL D,I,L,LTL,TC,TL I,L,TC,TL D,I,TL D,E,I,L,TC,TL TL D,E,F,I,L,TC,TL TL E,F,HG,I,L,LTL,P,TC,TL LTL DB,F,I,L,LTL,TC,TL TC,TL,L TL TL D,E,F,L,LTL,TC,TL D,E,HG,I,L,LTL,TL,VC D,F,L,LTL,TL D,E,F,I,L,LB,LTL,P,TC,TL D,DB,E,F,I,L,LB,LTL,TC,TL D,E,L,LTL,TC,TL D,E,I,LTL,P,TC,TL D,TL D,E,F,L,LTL,TL D,I,TL E,F,L,LTL,TC,TL,VC D,E,I,TL D,DB,E,L,LB,TL D,E,LTL,TL D,E,LTL,TL E,I,L,LTL,TL D,E,LTL,TL D,DB,E,F,I,L,LB,LTL,TC,TL D,E,I,L,LTL,TC,TL D,DB,E,F,I,LB,LTL,P,TC,TL E,HG,L,LTL,P,TC D,DB,E,I,L,LB,TL D,LB D,E,F,HG,I,L,LTL,P,TC,TL DB,E,F,I,L,LTL,TC,TL

Straight Trucks 100 150 3 70 0 25 41 36 400 42 740 1 57 2 33 35 552 141 982 150 0 18 70 1 5 2

5 43 6

6 20 0 96 142 7 100 5 0 3 10 0 146 70 35 10 50 60 286 0 8 42

Tractors

Trailers

160 810 350 350 175 200 1050 125 245 130 347 130 1600 248 74 215 378 325 210 1500 190 90 775 221 1,142 255 713 188 1254 280 540 312 200 600 129 284 245 329 650 215 410 201 250 179 723 250 250 400 203 208 192 225 275 697 381 190 789 180 140 210 268 150 241 375 425 550 475 1000 325 230 41 500 350 227 300

415 2625 850 475 675 400 3000 400 675 450 1281 252 2250 874 305 500 1200 900 500 3450 250 735 6100 763 2,070 1000 2181 466 3314 710 945 513 500 2000 450 876 650 1171 1125 1250 575 518 800 532 1898 700 500 1200 326 497 419 420 740 1433 825 624 1550 954 411 125 671 1200 620 850 1124 1075 1281 2850 1013 810 146 1400 480 644 1070

Containers 300 10 200

292 292

0 370 140 307 6000

20 20

7 61 550

24 600

0 342 35 175 650

0 225

10 200 181

Terminals

Web

13 25 5 29 14 6 6 2 7 22

V,R,C V,R V,R,C R V,R V,R,C V,R,C V V V,R

28 38 55 6 8 1 56 7 4 18 16 17

V,R,C V,R,C V,R,C V V,C V,R,C V,R,C V,R,C V,R,C V,R,C V,R V,R,C

7 34 15

V,R,C V,R,C

5 10 5 2 15 2 2 7 13 10 9 4 2 7 3 18 13 5 2 2 2 10 4 1 64 22 10 23 3 2 3 1 4 6 8 122 17 21 16 13 16 32 1 5 13 8

V,R V,R V,R,C V

V V,R,C V,R,C C V,R,C V V,R,C V V,C V,R,C V,R,C V,R,C V,R,C V,R,C V,R V,R,C V,R,C V,R,C V V,R,C V,R,C V,R,C V,R,C V,R V,R,C V,R,C V,R,C V,R V,R,C V,R,C V,R,C V V

CODES. Operating Area: Regional – One province/state; Multi-regional – Selected provinces/states; North America – Canada, U.S.; International – Canada, U.S., Mexico/Other; Types of Service: D – Dedicated Contract; DB – Dry Bulk; E – Expedited; F – Flatbed; HG – Household Goods; I – Intermodal; L – Logistics; LB – Liquid Bulk; LTL – Less than Truckload; P – Package; TC – Temperature Controlled TL – Truckload; VC – Vehicle Carrier; Web Services: Web Visibility – tracking & tracing (V); Web Reports – downloadable reports (R); Web Custom – customizable reports (C); *2009 figures

TOP 100 –

continued

Company Name

Headquarters

Customer Line

Web Address

Operating Area

Shadow Lines Transportation Group Simard Transport SLH Transport Sokil Transportation Group Speedy Transport Sunbury Transport Ltd. System 55 Transport Thomson Terminals Ltd. TransFreight Transport Morneau TransX Group of Companies TransForce Inc. Travelers Transportation Trimac Transportation Services Inc. TST Overland Express (TransForce) UPS Freight V.A. Inc. – Transport-Logistix Van Kam Freightways Verspeeten Cartage Vitran Express Canada Warren Gibson Williams Moving and Storage Wilson’s Truck Lines Limited XTL Transport Yanke Group of Companies

Langley, BC Lachine, QC Kingston, ON Edmonton, AB Brampton, ON Fredericton, NB Oakville, ON Rexdale, ON Kitchener, ON Ste-Arsene, QC Winnipeg, MB Montreal, QC Brampton, ON Calgary, AB Mississauga, ON Mississauga, ON Laurier Station, QC Surrey, BC Ingersoll, ON Toronto, ON Alliston, ON Coquitlam, BC Etobicoke, ON Toronto, ON Saskatoon, SK

800-663-1421 514-636-9411 800-661-2146 800-661-9923 905-455-8005 800-786-2879 800-268-5070 800-771-7487 859-372-5935 800-465-2727 800-665-7392 514-331-4000 800-265-8789 403-298-5100 888-878-9229 800-PICKUPS 800-363-8175 888-229-9889 800-265-6701 800-263-9588 800-461-4374 877-410-9411 416-621-9020 800-361-5576 800-667-7988

www.shadowlines.com www.simard.ca www.slh.ca www.sokil.com www.speedy.ca www.sunbury.ca www.system55.com www.thomsongroup.com www.transfreight.com www.groupemorneau.com www.transx.com www.transforce.ca www.travelers.ca www.trimac.com www.tstoverland.com www.ups.com www.vatransport.com www.vankam.com www.verspeeten.com www.vitran.com www.warrengibson.com www.williamsmoving.com www.wilsonlogistics.ca www.xtl.com www.yanke.ca

North America Multi-Regional North America North America Multi-Regional North America Multi-Regional, North America Multi-Regional, North America International Multi-Regional International * See individual fleet listings North America International Multi-Regional, North America, International International Multi-Regional Multi-Regional, North America Multi-Regional, North America North America Multi-Regional, North America International Multi-Regional, North America North America North America

Headquarters St-Romuald, QC Grimsby, ON Bois-des-Filion, QC Dartmouth, NS North York, ON Toronto, ON Tilbury, ON Pintendre, QC Woodstock, ON Hagersville, ON Cambridge, ON Thunder Bay, ON Ayr, ON Bracebridge, ON Oakville, ON Saint-Jerome, QC Boucherville, QC Toronto, ON Toronto, ON Saint-Éphrem-de-Beauce, QC St-Laurent, QC Rocky View, AB Mississauga, ON Cottam, ON Calgary, AB

Customer Line 800-463-4460 800-263-0240 877-628-8444 902-468-3100 800-822-4512 (Canada) 888-427-8729 519-682-3544 800-263-3642 888-209-3867 800-263-8383 800-668-9691 807-623-0054 800-265-7868 800-461-5808 905-815-9412 800-363-3666 450-641-3070 888-827-8521 800-268-0475 418-484-2104 514-337-2203 800-661-9191 905-602-7323 800-749-6960 403-279-8388

Web Address www.transforce.ca www.empiretrans.com www.transforce.ca www.gtltransportation.com www.herculesfreight.com www.ics-canada.net www.international-freight.com www.transforce.ca www.contrans.ca www.contrans.ca www.mcarthurexpress.com www.mckevitt-trucking.com www.millcreek.on.ca www.muskoka-transport.com www.transforce.ca www.transforce.ca www.matrec.ca www.totallogistics.com www.trans4.com www.tcfl.com www.transportlemieux.com www.triline.ca www.tsttruckloadexpress.com

Operating Area Multi-Regional, North America Multi-regional, North America, International North America North America North America Multi-Regional Multi-regional, North America North America North America North America Multi-Regional, North America, International North America International Multi-regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional North America International North America Regional Multi-regional, North America Multi-regional, North America, International Multi-regional, North America North America

The next 25 Company Name Besner (TransForce) Empire Transportation Golden International (TransForce) GTL Transportation Inc. Hercules Freight ICS Courier (TransForce) International Freight Systems Kingsway Bulk (TransForce) Laidlaw Carriers Bulk LP (Contrans) Laidlaw Carriers Flatbed LP (Contrans) McArthur Express (TransForce) McKevitt Trucking Mill Creek Motors Muskoka Transport P&W Intermodal / MTMX Logistics (TransForce) Papineau International (TransForce) Services Matrec (TransForce) Total Logistics Trucking Trans4 Logistics (TransForce) Transport Couture et fils (TransForce) Transport Herve Lemieux Tri-Line Carriers LP (Contrans) TST Truckload Express (TransForce) TVM Ltd. Westfreight Systems (TransForce)

www.westfreight.com

Transforce owned companies Company Name TransForce Inc. A&M International (TransForce) ATS Retail Solutions (TransForce) Bergeron-Maybois (TransForce) Besner (TransForce) Byers Transport (TransForce) Canadian Freightways (TransForce) Canpar Transport (TransForce) Transport Couture et fils (TransForce) D. Donnelly (TransForce) Durocher International (TransForce) Epic Express (TransForce) Ganeca (TransForce) GHL Transport (TransForce) Golden International (TransForce) Grégoire (TransForce) Highland Transport (TransForce) Howard’s Transport Services (TransForce) ICS Courier (TransForce) JC Germain (TransForce)

Headquarters Montreal, QC East Angus, QC Toronto, ON Amos, QC St-Romuald, QC Edmonton, AB Calgary, AB Mississauga, ON Saint-Éphrem-de-Beauce, QC Vaudreuil-Dorion, QC St-Felix-de-Kingsey, QC Toronto, ON Carignan, QC Lavaltrie, QC Bois-des-Filion, QC Plessisville, QC Markham, ON Stony Plain, AB Toronto, ON Trois-Rivieres, QC

Customer Line 514-331-4000 819-832-4936 416-679-7969 819-727-9404 800-463-4460 780-440-1000 888-868-7923 800-387-9335 418-484-2104 800-363-8762 800-267-2042 888-868-7923 800-561-7444 450-586-3236 877-628-8444 819-362-8813 800-268-1729 780-968-8555 888-427-8729 819-370-3422

Web Address www.transforce.ca www.transforce.ca www.ats.ca www.transforce.ca www.transforce.ca www.byerstransport.com www.cfmvmt.com www.canpar.com www.tcfl.com www.transforce.ca www.durochertransit.com www.cfmvmt.com www.ganeca.ca www.camionnageghl.com www.transforce.ca www.transportgregoire.com www.highlandtransport.com www.cfmvmt.com www.ics-canada.net www.transforce.ca

Operating Area Multi-Regional, North America Multi-Regional Multi-Regional Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America, International Multi-regional, North America, International North America Multi-Regional, North America Multi-Regional Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America North America North America Multi-Regional, North America Multi-Regional Multi-Regional North America

LEGEND: THE TOP 100 were chosen according to vehicle counts which included straight trucks, tractors, trailers and intermodal containers domiciled in or controlled from Canada. Top 100 carriers are listed in alphabetical order. Both parent company and holdings shown if large enough. Companies not reporting new capacity figures for more than 2 years are removed from the list.

Primary Service D,E,I,LTL,TL D,E,I,L,LTL,TL D,E,L,LTL,TL D,E,F,I,L,LTL,P,TC,TL LTL DB,E,F,L,TC,TL D,F,L,TL D,E,F,L,TC,TL D,E,I,L,LTL,TL D,E,L,LTL,TC,TL D,E,F,I,L,LTL,TC,TL D,E,F, L,LTL,TC,TL D,DB,I,L,LB,TC,TL D,E,I,L,LTL,P,TC,TL E,I,L,LTL,P,TC,TL D,L,LTL,P,TL D,E,F,HG,I,L,LTL,P,TC,TL D,I,TL I,E,LTL,TL,LTL F,I,TL D,DB,E,F,HG,I,L,LTL,TL,VC D,L,TC,TL D,TL D,E,I,TL

Straight Trucks 12 64 3 100 66 4 2 18 25 1507 3 14 218 10 10 110 113 0 14

Primary Service L,TC,TL D,E,F,TL F,L,TL D,I,LTL,TC,TL LTL,TL P D,E,F,TL DB,LB TL TL D,E,L,LB,LTL,TC,TL D,F,L,LTL,TC,TL D,L,TL F,L,TL F,I,LB,TC D,L,LTL,TC,TL D D,E,F,I,L,LTL,TC,TL D,I,LTL,L,TC,TL I,LTL,TL D,F,I,TC,TL D,LTL,TL D,E,F,L,TL D,E,I,L,TL D,F,LTL,TL

Straight Trucks

Primary Service

Straight Trucks 1507

HG,L,LTL,TL E,L,LTL,P,TL TL L,TC,TL E,F,LTL,TL E,F,I,L,LTL,TC,TL P I,LTL,TL DB,F,I,L,TL F E,F,I,L,LTL,TC,TL L,TL LB F,L,TL TL D,E,I,L,TC,TL E,F,TL P TL

1 35 385

3 0 3

2 35 0 3

12 25 42 740 2 6 5

385

Tractors

Trailers

Containers

Terminals

Web

120 544

6 7 15 5 6 4 1 3 12 14 13

R,C V,R,C V V,R,C V,R,C V,R,C C V,R,C V,R,C V,R,C V,R,C

6 47 24 215 6 7 1 21 2 16 2 5 8

V,C V,R,C V,R,C V,R,C V,R V,C V,R,C V,R,C V V,R,C V V,R,C V,R

Terminals 2 1 1 2 24 36 2 4 1 2 1 4 1 2 2 1 13 2 1 2 1 2 2 2 5

Web

289 311 640 175 170 302 128 250 222 276 1500 4,302 275 1007 296 6629 230 350 276 405 280 94 400 355 372

962 284 3400 600 605 741 410 800 2065 750 3150 12,315 800 2640 995 21,791 820 700 626 1280 1120 225 794 1250 802

Tractors 100 80 98 85 148 1 175 148 140 137 75 150 98 140 80 63 235 170 120 97 225 102 103 124 101

Trailers 285 320 207 175 285 3 175 320 256 208 200 300 239 350 200 194 53 300 245 340 225 157 134 374 157

Containers

Tractors 4,302 34 13 58 100 130 248 74 97 18 70 57 34 40 98 284 410 25 1 179

Trailers 12,315 131 158 126 285 450 874 305 340 28 150 153 102 62 207 876 575 41 3 532

Containers 78

950 78

675 100 250 412

27

0

18

18

Terminals 1 14 3 2 22 38 55 2 1 1 5 1 1 1 2 4 1 36 3

V,R,C V,R,C V,R,C

V V,R,C R,C V,R V V,R,C

Web V V,R V,R,C V,R,C V,R,C R,C V,R,C

V,R,C V,R,C

CODES. Operating Area: Regional – One province/state; Multi-regional – Selected provinces/states; North America – Canada, U.S.; International – Canada, U.S., Mexico/Other; Types of Service: D – Dedicated Contract; DB – Dry Bulk; E – Expedited; F – Flatbed; HG – Household Goods; I – Intermodal; L – Logistics; LB – Liquid Bulk; LTL – Less than Truckload; P – Package; TC – Temperature Controlled TL – Truckload; VC – Vehicle Carrier; Web Services: Web Visibility – tracking & tracing (V); Web Reports – downloadable reports (R); Web Custom – customizable reports (C); *2009 figures

Transforce –

continued

Company Name

Headquarters

Customer Line

Web Address

Operating Area

Kingsway Transport (TransForce) Kingsway Bulk (TransForce) Kos Oilfield Transportation (TransForce) Lacaille International (TransForce) Landry (TransForce) Legal Freight Services (TransForce) Location Mirabel Malex (TransForce) Martrans (TransForce) McArthur Express (TransForce) McGill Air (TransForce) McMurray Serv-U Expediting (TransForce) Transport Nordique (TransForce) P&W Intermodal / MTMX Logistics (TransForce) Papineau International (TransForce) Rebel Transport (TransForce) Select-Thibodeau (TransForce) Services Matrec (TransForce) St-Lambert (TransForce) Thibault (TransForce) TLS Trailer Leasing Services (TransForce) Trans4 Logistics (TransForce) TST Expedited Services/TST Air (TransForce) TST Overland Express (TransForce) TST Truckload Express (TransForce) Universal Contract Logistics (TransForce) UTL Transportation Services - East (TransForce) UTL Transportation Services - West (TransForce) Transport Watson (TransForce) Westfreight Systems (TransForce) Winalta (TransForce)

Mississauga, ON Pintendre, QC Drayton Valley, AB Carignan, QC Saint-Noel, QC Edmonton, AB Montreal, QC Gatineau, QC Montreal, QC Cambridge, ON Montreal, QC Fort McMurray, AB Saint-Jerome, QC Oakville, ON Saint-Jerome, QC Edmonton, AB Montreal, QC Boucherville, QC Saint-Romuald, QC Sainte-Cécile-de-Milton, QC Montreal, QC Toronto, ON Windsor, ON Mississauga, ON Mississauga, ON Toronto, ON Mississauga, ON Edmonton, AB Montreal, QC Calgary, AB Edmonton, AB

800-856-5559 800-263-3642 800-357-6773 800-561-0929 800-929-9285 780-452-7221 514-353-8196 819-778-5237 514-595-4444 800-668-9691 514-856-7567 780-791-3530 800-363-3666 905-815-9412 800-363-3666 888-282-2423 800-463-7334 450-641-3070 888-338-3381 450-372-2399 866-351-7575 800-268-0475 888-486-8911 888-878-9229 905-602-7323 877-496-9818 905-238-6855 800-663-8477 450-467-7352 403-279-8388 780-447-3521

www.kingswaytransport.com www.transforce.ca www.kosoilfield.com www.transforce.ca www.transforce.ca www.legalfreight.com www.transforce.ca www.malex.ca www.transforce.ca www.mcarthurexpress.com www.mcgillair.com www.mcmurrayservu.com www.transforce.ca www.transforce.ca www.transforce.ca www.rebeltransport.ca www.select-thibodeau.com www.matrec.ca www.transforce.ca www.transforce.ca www.tlsleasing.com www.trans4.com www.tst911.com www.tstoverland.com www.tsttruckloadexpress.com www.u-c-l.com www.cfmvmt.com www.cfmvmt.com www.transportwatson.com www.westfreight.com www.winaltatransport.com

Multi-Regional North America Multi-Regional Multi-Regional, North America Multi-Regional Multi-Regional Regional Multi-Regional Multi-Regional Multi-Regional, North America, International North America Regional North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional Multi-Regional, North America Regional Multi-Regional International Multi-Regional, North America, International Multi-Regional, North America, International Multi-regional, North America, International Multi-Regional Multi-Regional, North America, International Multi-regional, North America, International Multi-Regional, North America, International North America Multi-Regional

Contrans owned companies Company Name

Headquarters

Customer Line

Web Address

Operating Area

Contrans Group Inc. Brookville Carriers Flatbed LP (Contrans) Cornerstone Logistics LP (Contrans) ECL Carriers LP (Contrans) Glen Tay Transportation LP (Contrans) Hopefield Trucking LP (Contrans) L. A. Dalton Systems LP (Contrans) Laidlaw Carriers Bulk LP (Contrans) Laidlaw Carriers Flatbed LP (Contrans) Laidlaw Carriers PCS LP (Contrans) Laidlaw Carriers Tank LP (Contrans) Laidlaw Carriers Van LP (Contrans) ProWerx Disposal Ltd. (Contrans) Tri-Line Carriers LP (Contrans) Tripar Transportation LP (Contrans)

Woodstock, ON Truro, NS Oakville, ON London, ON Perth, ON Mississauga, ON Caledonia, ON Woodstock, ON Hagersville, ON Beloeil, PQ Woodstock, ON Guelph, ON Edmonton, AB Rocky View, AB Oakville, ON

800-819-5259 800-565-7554 877-388-2888 800-265-0934 x 234 800-450-9483 800-265-5430 800-363-5912 888-209-3867 800-263-8383 800-363-9412 800-465-8265 800-263-8267 780-444-8805 800-661-9191 800-387-7210

www.contrans.ca www.brookville.ca www.cornerstonelogistics.com www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.prowerxgroup.ca www.triline.ca www.tripartrans.com

North America North America North America North America North America North America North America North America North America North America North America North America Multi-Regional, North America North America

Day & Ross owned companies Company Name

Headquarters

Customer Line

Web Address

Operating Area

Day and Ross Transportation Group Day and Ross (Day and Ross) Day and Ross Dedicated Logistics (Day and Ross) Fastrax (Day and Ross) Ottaway Motor Express (Day and Ross) Sable Warehousing and Distribution (Day and Ross) Sameday Worldwide (Day and Ross)

Hartland, NB Hartland, NB Brampton, ON Florenceville, NB Woodstock, ON Halifax, NS Mississauga, ON

866-DAY-ROSS 866-DAY-ROSS 905-799-6500 506-392-2600 519-539-8434 902-468-8933 905-676-3750

www.dayrossgroup.com www.dayross.ca www.dayross.ca/dedicated www.fastrax.ca www.dayrossgroup.com www.dayrossgroup.com www.sameday.ca

North America North America North America North America Regional North America/International

Calyx owned companies Company Name

Headquarters

Customer Line

Web Address

Operating Area

Calyx Group of Companies Calyx Transportation Group (Calyx) Kreative Carriers (Calyx) Muir‘s Cartage (Calyx)

Concord, ON Concord, ON Vaughan, ON Concord, ON

905-695-3841 905-695-3841 905-695-3841 800-646-2013

www.calyxinc.com www.calyxinc.com www.kreativecarriers.com www.muirscartage.com

North America North America Multi-Regional, North America

LEGEND: THE TOP 100 were chosen according to vehicle counts which included straight trucks, tractors, trailers and intermodal containers domiciled in or controlled from Canada. Top 100 carriers are listed in alphabetical order. Both parent company and holdings shown if large enough. Companies not reporting new capacity figures for more than 2 years are removed from the list.

Primary Service LTL DB,LB D,F,TL D,I,L,TL F F,LTL,TC,TL D DB I, TC,TL D,E,L,LB,LTL,TC,TL D,E,LTL,TC,TL E,F,L,LTL,TC,TL LB,TL F,I,LB,TC D,L,LTL,TC,TL D,E,F,TL D,E,F,HG,I,L,LTL,P,TC,TL D F,L,TL DB (Equipment leasing) D,I,LTL,L,TC,TL D,E D,E,I,L,LTL,P,TC,TL D,E,F,L,TL D,L,LB,TC D,E,F,I,L,TC,TL D,E,F,L,TC,TL D,F,LTL,TL D,F,LTL,TL F

Primary Service

Straight Trucks

Tractors

Trailers

250 148 60 44 26 47 46 33 20 75 13 3 40 80 63 25 227 235 17 6 12 120 16 296 103 45 47 48 29 101 17

700 320 99 88 62 49 105 3 120 200 20 2 113 200 194 46 644 53 42 2 1,800 245 20 995 134 80 97 116 130 157 39

Tractors

Trailers

1,142 80

2,070 140

63 57 38 57 140 137

106 96 111 67 256 208

203 208 15 102 42

326 497

Tractors

Trailers

Containers

3314 2181 466 513 n/a 8 146

20

3 286

1254 713 188 312 n/a 0 41

Straight Trucks

Tractors

Trailers

Containers

347 130 37 180

1281 252 75 954

292 292

6

1 29 4

42

1 150 14 40

3

Straight Trucks

TL L TL TL TL TL TL TL TL TL TL TL D,LTL,TL TL

Primary Service LTL,TC,TL D,L F,I,TC,TL,VC D,TL LTL,TL E,HG,L,LTL,P,TC

Primary Service E,I,TC TL D,TL

Straight Trucks 982 552 141 0

41 36 0 5

Containers

60

Containers

Terminals 13 4 4 1 1 2 2 2 1 1 1 1 2 2 1 2 13 13 1 1 3 1 2 24 2 9 1 1 1 5 3

Terminals

Web

V

R,C V

V V,R V,R,C V

Web

1 2 1 2 1 1 1 2 1 2 2 1 2 2

157 106

20

Terminals

Web

34 15 5

V,R,C V,R,C V,R,C

3 32

V,R,C

Terminals

Web

1 3

V,R,C

CODES. Operating Area: Regional – One province/state; Multi-regional – Selected provinces/states; North America – Canada, U.S.; International – Canada, U.S., Mexico/Other; Types of Service: D – Dedicated Contract; DB – Dry Bulk; E – Expedited; F – Flatbed; HG – Household Goods; I – Intermodal; L – Logistics; LB – Liquid Bulk; LTL – Less than Truckload; P – Package; TC – Temperature Controlled TL – Truckload; VC – Vehicle Carrier; Web Services: Web Visibility – tracking & tracing (V); Web Reports – downloadable reports (R); Web Custom – customizable reports (C); *2009 figures

TOP TIER

EXECUTIVE SPEAK

where do we go from here?

They’ve downsized their fleets and their workforce.

They’ve examined every cost centre two times over.

Canada’s top trucking executives are now ready and hungry for the rebound.

Here’s what they expect to see in the turbulent year ahead.

By Harry Rudolfs

S

hippers and carriers are two sides of the same coin. The coin has been landing mostly shipper-side up the last couple of years, but there’s a strong feeling that it is about to change.

The consensus among shippers and carriers is that the bleeding caused by outrageous low rates is coming to an end, and that rates will indeed be going up. At the same time, the signposts indicating an upcoming driver shortage were on everyone’s mind.

How quickly things can turn around! Up until recently, few thought the auto manufacturing industry would ever rebound in southern Ontario. Yet the Cami plant in Ingersol is running full bore, as are some other assembly plants and parts suppliers from Oshawa to Windsor. However, the US government plan to print money and buy up bonds and the subsequent devaluation of the American currency will no doubt pose another challenge to Canadian manufacturers and trucking interests. And if China chooses to react to the US initiative by dampening down its surging economy, the luster may come off the revitalized Canadian resources market.

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Transportation consultant Dan Goodwill of Dan Goodwill and Associates offers sage advice: “With the Canadian dollar at par and possibly going as high as a US$1.10, this makes it very challenging for Canadian shippers to sell into the US market. It is very important for Canadian shippers and carriers to think globally. Canadian shippers need to look at offshore markets to offset the drop in US purchases. Canadian transportation companies should be forming alliances and partnerships to provide a ‘land bridge’ to foreign markets. This is where things are going and this trend can only accelerate in 2011 and beyond.”

Whatever the future holds, truckers are a resilient bunch, and this is a stronger, leaner group going forward. Albeit with some reservations, a sense of expectancy of better times ahead seems to run through the comments of the executives we profile in the following pages. One thing we can be certain of is change itself, and the following commentaries are reflective of a trucking community that is ready to embrace change and make it work for them.

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TOP TIER

EXECUTIVE SPEAK Stan Dunford CEO and chair Contrans

Claude Robert President and CEO Groupe Robert

verybody’s in a better frame of mind. You would think revenues would be up, but they’re up very little. Yet if you called any of our general managers across the country, they would tell you we’re really busy, we can’t keep up. Well, they are, but they’re doing everything with a lot less equipment. Where the profit comes from in this quality of revenue is in the utilization of assets that can offset lower pricing.

So you’re working for 5% less than last year, but you’re utilizing your assets better and you’re making more money than a year ago.

Things have changed fundamentally from when the dollar was 70 cents, and now it looks like it could stay close to par for a considerable length of time. That’s created the biggest change in trucking I’ve seen in 43 years. Historically, your headhaul was your premium rate and your backhaul was the discount rate.

When it’s a 90-cent dollar, it’s completely reversed. Now the headhaul is the US freight coming to Canada and the backhaul is Canada to the US. You’re not going to see much change in volume late into 2011.

The economy’s not going to take off; it’s going to be very slow or it might just stay flat. Rates are hard to predict. But the main thing that’s going to drive the rates back up to an acceptable level is the driver shortage. There are enough guys that have already left the industry and there are not a lot of good replacement drivers out there. It’s not going to take much of an (economic) improvement for customers to get scared when they can’t get service. Then they’ll be willing to pay a bit more and lock into a contract.

Mergers and acquisitions have slowed down overall. In 2009, we didn’t make any at all. In 2010, we looked at about 80 companies and we acquired two in the waste management business (in Edmonton and Calgary). I like that business, it’s consistent and not subject to market fluctuations. It’s also regional and I don’t have to worry about foreign exchange rates.

e are partially out of the recession, but the economy of 2005-6 will never come back. The economic picture in Canada is very, very soft. The strong Canadian dollar along with consumers with a high degree of debt is the perfect combination to put us back into recession.

Transport companies have to be very careful. I just had a meeting with my managers. Aside from the 50 liquid natural gas (LNG) tractors we’re are buying, and a few special pieces of equipment for special contracts, we’re not going to be buying any equipment right now.

We’re going into LNG because I strongly believe that the experience we acquire is going to put us at an advantage when others are ready to come on board. There are things in life that people are afraid to try because they are risky. But we could use some tax support from the governments in Ontario and Ottawa.

Quebec allows us to write off a significant amount of depreciation on alternative-fuelled vehicles.

Trucking companies are shortening up the distances they travel. If a shipper wants to ship to Texas, he uses rail. And there’s a new generation of drivers out there. Some drivers want to be home at night, so they prefer driving a gravel truck to hauling long distance. The drivers that used to count on 3,000 miles a week to survive will not be able to do it unless they cheat.

The big problem in the industry is that the shipper is used to getting the cheapest possible rates. They don’t have a clue why the rates need to go up. Big customers are asking for price increases, yet they want a rate decrease in freight rates. People need to be realistic.

Right now, customers are going for very short contracts, if at all. One shipper I know needs 25 trucks per week, but won’t commit to a dedicated carrier. Instead, he is looking on the Internet for people to move his freight. But that will change. Just wait for CSA 2010 and onboard computers to kick in.

The only positive thing I see on the horizon is that many private fleets and carriers will get out of the business. Trucks are dying every day and smaller companies are not going to be able to afford the price of new trucks and insurance premiums.

E

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TOP TIER

EXECUTIVE SPEAK Vaughn Sturgeon President and CEO Atlantica Diversified Transport Systems

I

s there optimism for the upcoming year? Yes, I do think so, but it’s a bit constrained. I’d call it cautious optimism. Times have been so difficult over the past couple of years and shippers and carriers have started to get a better hand on supply and demand. So there are less trucks on the road and the capacity balance is certainly closer than ever to where it should be.

My feeling is that we’re not going to see a large increase in shipping volumes. There will be some growth, but more from the decrease in capacity, so growth will be sporadic and not necessarily consistent month after month. But overall, we’re going to see gains in 2010 and hopefully again in 2011.

We got hit pretty badly in the last few years, but, from what we hear, not as badly as our fellow carriers in the US. But I don’t necessarily expect to see a lot more bankruptcies. Fleet size has come down quite a bit. Where once a carrier was running 100 units, they’ve now got 70, and one with 70 units is down to 40.

You’re definitely going to see mergers and acquisitions continuing, but I don’t think we’ll get to a state of an oligopoly with only a few big carriers. There are still going to be entrepreneurs out there, but it’s getting more difficult for the smaller “Mom and Pop” operation with 20 trucks or so to survive.

Freight rates are definitely going up. How high will depend on supply and demand in the specific lane, but I would expect at least 5-10% overall. Some of the rate cutting that was going on in recent years was just atrocious. Thankfully, that seems to be over as a general trend.

One worrisome issue on the horizon is a looming driver shortage. If you thought the last one was bad, get ready for this one!

Right now, there are fewer trucks on the road and so if you’re looking to add a few drivers here or there, you can probably find them. But the next time we need to increase our driver pool there’s going to be a big problem. The demographics aren’t there.

We’re looking at an aging workforce that’s getting ready to retire and their replacements aren’t coming into the industry. In the past, we’ve gotten drivers from Germany, the Netherlands and the UK, but even those nations are drying up as a resource.

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Jacqueline Meyers President Meyers Transportation Services

F

reight rates need to go up, both LTL and truckload. Some of the truckload rates to the US were just decimated in the last couple of years as carriers were quoting rates below their costs just to keep their equipment moving. There’s no more room to go down no matter how much we try to drive out costs and improve efficiencies. Rates should increase around 6% in the TL market and hopefully 3-4% in the LTL market.

Capacity is likely going to be an issue for shippers. Most fleets haven’t bought much equipment over the last three years and some of those older trucks have been coming off the road. Mostly, we’ve been buying specialty equipment where we know we can make a return on our investment. Customers are starting to realize they’ve got to be thinking in the long term – if they don’t lock in some capacity with core carriers, they’re going to be in trouble.

But not everyone is thinking that way.

One thing that is scaring us is the use of American contracts in Canada. Often, the head office in the US will send up a 50-page contract and want Canadian carriers to sign it. The contracts have overreaching clauses that put the carrier into a very risky position where their insurance won’t cover the risks.

The contracts often stipulate that the carrier is responsible for any and all losses and costs incurred regardless of whether the shipper was partly or entirely responsible. Even if the carrier can prove shipper negligence, the carrier is still responsible. And their insurance company won’t cover them for shipper negligence.

For example, if a shipper loads a refrigerated load on our trailer, but fails to advise us of the temperature requirements and the product is damaged by not maintaining the temperature, we would be responsible for the cost of the load.

We’re seeing more and more of these types of contracts. And some of these loads can be worth a million dollars. Some of the shippers will work with us and agree to a revised contract that’s acceptable to us and our insurance company. Other shippers insist on the American-style contract and as a result we have to walk away from large blocks of business. These indemnity clauses are so unfair that they have been made illegal in 25 States in the US. I’m hopeful that we will be able to convince our government that similar laws are required.

TOP TIER

EXECUTIVE SPEAK

Fred Myles Director of operations Rosedale Transport

Murray Scadeng President Triton Transport

he next driver shortage is upon us. The shrinkage is there and it’s been there for a while in terms of driver skill sets.

The quality and selection of new drivers is very slim. It’s a tech world today and young people just aren’t thinking of trucking as a career.

We started to look for drivers last February, as the economy had somewhat turned for the positive and we started to see an increase in volume. At least we’re holding steady and there’s optimism that more lanes will open up. We’ve lost a few carriers in the last recession, but when a big tree falls, the little ones get opportunity to grow or keep growing.

It’ll probably be a bit slow in the first quarter of 2011, but in the second and third quarters there should be some growth and freight rates should creep up. Of course, you can expect fuel to go up. As more parts of the economy come back on line, you’re going to see more trucks on the road and more demand for fuel.

Assessorial charges, in my opinion, will always be a part of the business. We charge for things like heated service and tailgate deliveries and there’s a built-in cost for all those moves. We don’t have much problem with detention time, unless there’s a delay at the border. Most shippers want to work with you to make sure their freight is delivered in a timely manner. Fuel surcharges are entrenched in the billing, the only debate is about what percentage the customer will pay.

In some ways, the recession was a boost to the LTL market.

Instead of a customer ordering five truck loads of material, he might just get five or 10 skids, because he doesn’t want to get stuck with excess inventory. And carriers, too, have learned how to max out their equipment. Part of the reason that some stability has come into the market is that carriers have learned to do more with less.

A future bright spot is the Vancouver and West Coast shipping environment that is bound to pick up once things get rolling. We just opened a terminal in Vancouver and are expecting an increase in business. As the Asian market continues to take off, getting back on its economic feet to where it was in the past few years, this will have a positive trickle effect on the global markets which, in turn, will cause a ripple effect across the rest of the Canada.

e’re a heavy-haul carrier and our market is heavy equipment for construction, mining and forestry, and we have a flat-deck division. A mini-recession hit us from March 2009 to about March 2010. It came later than we expected it, and some of our weaker competitors may have dropped by the wayside.

We’ve hired back and replaced the owner/operators we had to let go during the slow period. Even so, many owner/operators and older drivers have left the industry and we’re not finding the good young drivers that we had 20 years ago. This is going to be a real challenge going forward.

It’s hard to tell where we will go from here. We see the Alberta market as more volatile, while in B.C., some large projects have started up and volumes are up, as is pricing.

We haven’t suffered the same turndown as the rest of Canada, but the resources industry is hard to predict. I don’t see us getting back to 2007 levels in the near future – it was the one time I can remember when, in our sector, demand outstripped supply. The present-day US economy is just too weak, even though the Pacific Northwest is much stronger than other parts of the States.

Fuel is going to keep going up, but I don’t think we’ll see the volatility that was so hard to manage previously. We can manage slow increases, but, in many cases, fuel surcharges, or the way they were handled, turned out to be a bit of a cash grab for some carriers.

One issue that concerns us is what will happen with the 2010 engines. Although the 2007 engines may have been better for the environment, we have found them more costly to buy, less reliable and less fuel efficient. Hopefully our experiences with the 2010 EPA engines will be better.

T

W

JANuArY/FEBruArY 2011

33

Decisions Roundtable Part II

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the

Panelists MODERATOR Lou Smyrlis, Editorial Director, BIG Transportation Media

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There are no holds barred when the real issues behind investing in and implementing information technologies are debated in Part II of our Shipper-Carrier Roundtable MT: As buyers of transportation services, are there specific technologies you would like to see your carrier partners invest in so that they become more efficient?

Krizman: Tracking of shipments is important. On-time delivery information is key to me and is what I look for carriers to have. If they don’t have GPS capabilities, I still want on-time reporting. I need to know when things are not going to go right and I need to know as soon as possible. In today’s world, it’s not acceptable to not tell your shipper if you are going to be late.

Raynor: We are starting to see a lot of EDI and satellite technology being put into the industry by the larger carriers. But a lot of the smaller operators under 20 trucks are not going to invest in that kind of technology. That’s something that allows a larger 3PL to go to those carriers and offer them that kind of technology to communicate with their larger customers. We can look at things such as route optimization. We can run those routes to, for example, get them better fuel prices by showing them a different route that allows them to fill up at different stations.

Krizman: The shipper has to worry about the customer and the carrier can impact the customer. The nature of the business today makes the customer so key. If you come in with a late delivery, it means so much more than it ever did before. I know carriers two years ago that just had a status quo mentality on customer service. In today’s world, everybody has to step it up.

Sneyd: When the economy is the way it is and every load is so important to you, to lose it on service is unacceptable. We have the same focus. Customer service should mean a heck of a lot more now than before because we just can’t afford to put any customer at risk. There is no question it’s a huge focus.

Warren: I’ve seen a complete shift over the past three years in technology demands from customers. Our EDI programming bills are way higher than they were. It also

Chris Raynor, Branch Manager, C.H. Robinson Worldwide

Ray Krizman, NA Logistics Manager, Vicwest Income Fund

Michelle Arseneau, President and Managing Partner, GX Transport

Decisions Roundtable Part II

used to be that when online tracking first came out, people wanted to see where the shipment was instead of calling you. Then people started managing their loads online daily. Now they want to know every little thing about the shipment and they want your system to push them an e-mail about when the shipment was picked up, when it arrived, when it was cleared and delivered. We also see requests for all the exceptions. Definitely the information we are pushing to customers is huge. We are giving them so much more information than before about their shipments.

Seymour: I agree that we are gathering more information and that we are investing in the technology to do so, but it shocks me how little of that information our customers want. To throw something cynical at that, so many of them are getting the information faster but recently are taking longer to pay for our services. Where is the translation to us for that investment if, in fact, shippers are just going to slow down the process to pay? It’s very short-term thinking. In our industry, our two biggest costs are wages and fuel which represent 60-70% of our operating costs and both have to be paid every week. To take 60 to 90 days to get paid is a dysfunctional relationship. From my standpoint, we gather information, we have invested in the ability to provide it, but very few people want it. They just want to know why you are late, which is important. But other information that should be important such as delay at shipper, delay at consignee, delay at the border and what you can do to help us minimize these delays and maximize efficiencies is where we need to do a better job at providing it to get rid of waste and cost. We are killing ourselves with waste and costs that are out of our control and reside with our customers. It’s the information that we gather that will substantiate that.

MT: That is an interesting point. Michelle, when you look at the data that you are pushing out to your customers, do you feel there needs to be better use made of that data to make both your company and your customers more efficient?

Arseneau: Absolutely. The data we are pushing out to our customers – and we have some programs in place that reconcile the data

Eric Warren, Key Account Manager, Hercules Freight

Serge Gagnon, President, XTL Transport

going out that day and push it out to the customer live – is very sophisticated with some of the contracts we have going. One of the few things that’s exciting going forward right now is the technology and what is available in the mobile communications area and being able to link that to a complete end-to-end operating system. Being able to cost freight properly and move it at a profit is what we all want to do, but there are a lot of companies that don’t have the technology to do that and they are the ones out there that are really hurting the market.

Going forward, if you don’t have the technology in place to accurately cost your loads and shipments, the minute they are moving, you are going to lose money. It’s really up to the shipper to make the call at the end of the day. Are they going to go with the carrier that has the technology in place or are they going to go with the lowest rate available?

Warren: There are a substantial number of carriers with 20 or fewer trucks. It’s a massive amount of number of people who, as you say, are guessing.

Sneyd: There are many companies using these little carriers and yet they will tell you how important communication is to them. They forgo that aspect of it for a cheaper price. The other thing is that every bid that comes out wants to know your EDI capability and yet they never come to you to set it up. I’ve always been amazed at that. They asked about our capability yet they don’t get to the point of setting it up, including big companies who just don’t want to be linked in that way.

Arseneau: And we are talking of how many years of this…seriously, decades.

Sneyd: We’ve had customers say I don’t need all that information.

Just tell me if there is going to be a problem and that’s all I want to know. Well, it’s their choice.

Warren: We are starting to see more requests just for exceptions information to be pushed to them rather than all the information.

Mark Seymour, President, Kriska Group of Companies

Norm Sneyd, VP, Business Development, Bison Transport

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35

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Green to Gold – Continued from page 15

“The particles become so small they can’t be seen,” says Lindsay. “But they remain in the atmosphere and can lead to breathing problems.

“The new engines can cause other problems such as back pressure on engines that require higher maintenance. To eliminate the problems, somecarriers are turning in their newer, post-2007 engines for older ones.”

HGS units avoid the problem through more complete, initial fuel combustion that eliminates particulate formation and the need for complex and often incomplete postcombustion cleansing techniques.

US and Canadian regulators take a neutral stand on HGS technology. In an e-mail response, Lynda Harvey, Ottawa-based senior manager of fleet vehicles at the Office for Energy Efficiency at Natural Resources Canada said, “There have been many metamorphoses of these types of products over the years. As Government, we make neither recommendations on these products nor any specific brands. Traditionally, if we are asked, we suggest the product developer engage in proper independent testing such as done by the Environment Canada testing labs, by FP Innovations – PIT project in Canada or the EPA Technology Labs in the US where all testing is done to SAE standards.

“Often many unproven products where drivers see ‘changes’ or ‘improvements,’ they really come from the driver actually driving differently when they know the product is on the vehicle, in the tank, or in the fuel line. When questioned, the driver or fleet manager will admit that there is not significant baseline data over a long period to really measure properly, but the anecdotal stories become positive testimonials.

“In the end, it’s ‘buyer beware.’” Such confusion is not helpful. “There are lots of vendors out there, many with unsubstantiated claims of 30% fuel savings and very low unit prices,” says Paul Irish. “Potential buyers are asking themselves, ‘Why pay five times more for a system that has validated claims of only 10% fuel savings?’”

When asked what will it take to boost sales, he says, “Two things will drive wider acceptance. The first is higher emissions standards from regulators such as the US Environmental Protection Agency or the State of California. The second is higher diesel fuel prices.” (At press time, US Diesel fuel prices were hovering around US$3.33 per US gallon, up 19% from the year before.)

What’s next? Hy-Drive is currently conducting a limited, demonstration impact study in which units will constantly run in 10-minutes-on, 10-minutes-off cycles. This will remove driver bias and other external factors that can affect the unit’s performance. “It will be similar to double-blind, medical trials set up to prove that it’s the pill not the placebo that creates the positive results,” says O’Bireck.

Such testing will eliminate a fault in current verification processes which Irish sums up as, “real-world engine performance may

not duplicate laboratory test results.

Although results are valid and verification using SAE standards, they do not address other relevant issues such as the long-term impact of fuel efficiency.”

However, O’Bireck has high hopes for Hy-Drive’s current efforts. “After establishing the validity and credibility of the technology, we plan to spend a lot of money on marketing so our product will have the ability to go viral,” he says.

That will go a long way to encouraging carriers to install HGS units on their fleets. MT

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InsidetheNumbers SHIPPER EXPECTATION FOR FREIGHT RATES IN 2011 BY MODE

Increase

Decrease

Stay about the same

LTL Trucking

52%

4%

43%

TL Trucking

48%

6%

46%

Courier

47%

4%

50%

Rail

38%

4%

58%

Marine

47%

10%

42%

Air

49%

4%

47%

Intermodal

44%

3%

53%

SHIPPER PERCEPTION OF AVAILABLE CAPACITY BY MODE (5 = balanced capacity; 10 = very tight capacity; 0 = very loose capacity)

4.71

Intermodal

4.87

Air

6.09

Marine Rail

5.24 3.64

Courier TL Trucking

ANNUAL COMPARISON OF SHIPPERS INDICATING SHIPMENT LEVEL INCREASES COMPARED TO PREVIOUS YEAR

4.73

LTL Trucking

71% 60%

3.90 0

1

2

3

4

5

6

60%

58% 52%

7

46%

43% 27%

92%

92% That’s the percentage of Canadian manufacturers who view green supply chain management practices as strategically important, according to a study conducted by Industry

2004

2005

2006

2007

2008

2009

2010

2011

PERCENT OF SHIPPERS PLANNING TO INCREASE USE OF TRANSPORTATION IN 2011 BY MODE

Canada, SCL, and Canadian

Increase

Decrease

Stay about the same

Not sure

8%

44%

5%

Manufacturers & Exporters.

However, the number of firms

LTL Trucking

43%

that actually engage in such practices

TL Trucking

48%

8%

39%

5%

Courier

30%

10%

53%

7%

is significantly lower. Only two out of three manufacturers actually

Rail

19%

6%

58%

17%

Marine

27%

5%

50%

18%

implement such practices in their

Air

22%

10%

50%

18%

distribution activities.

Intermodal

31%

5%

48%

16%

IS ANOTHER CAPACITY CRUNCH AND HIGHER PRICING ON THE WAY?

From 2004 to 2006, Canadian transportation experienced a capacity crunch that dramatically drove up pricing across virtually all modes.

Subsequently, the eventual boosting of capacity and the dramatic drop in freight volumes during the recession created a capacity overhang that resulted in significant downward pressure on pricing. Carriers have shrunk their capacity over the past two years, which begs the question: are we about to experience another swing towards tighter capacity and higher pricing? Our annual Transportation Buying Trends Survey, conducted in partnership with CITA and CITT, shows that six in 10 shippers expect higher shipment volumes in 2011. Depending on the mode, one fifth to one half of shippers expect to use more transportation services in 2011 and their perception about available capacity is that it is getting close to balanced (represented by 5.00 on the scale shown above), with the exception of LTL trucking and courier services, which are still considered to have a fair amount of excess capacity. Marine services are already perceived to be experiencing the early stages of a capacity shortage (although that is somewhat artificial since containership lines have purposely removed vessels from service, which would be available if needed). More than 40% of shippers expect their transportation rates to increase in 2011, according to our research, although the majority expect the increases to be kept under 4% (excluding surcharges).

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UNITED FARMERS OF ALBERTA

CHRIS PAGE & ASSOCIATES

9708-108 St. Grande Prairie AB T8V 4E2 Tel: (780) 539-9555

707-8th Ave. S.W. Calgary AB T2P 1H5 Tel: (403) 298-6709

4838 Richard Rd. SW, Suite 700 Calgary AB T3E 6L1 Tel: (403) 570-4306

14435-124 Ave. Edmonton AB T5L 3B2 Tel: (780) 451-4373

OAK POINT OIL DISTRIBUTORS

THE UNITED SUPPLY GROUP OF COMPANIES

TRANSIT LUBRICANTS LTD

R. P. OIL LTD

LUBRIFIANTS SAINT-LAURENT

33-A Oakpoint Hwy. Winnipeg MB R2R 0T8 Tel: (204) 694-9100

2031 Riverside Dr. Timmins ON P4R 0A3 Tel: (705) 360-4355

5 Hill St. Kitchener ON N2G 3X4 Tel: (519) 579-5330

1500-1050 Pender St. West.

Vancouver, BC V6E 3T4 Tel: (604) 668-5735

1111 Burns St. East Unit 3 Whitby ON L1N 6A6 Tel: (905) 666-2313

2310 rue de la Province Longueuil QC J4G 1G1 Tel: (450) 679-8866

21/01/11 2:25 PM