Trucking industry suffers costs from 9/11
Oct 4, 2005 11:59 AM
A recently released study by Transport Canada points to significant cost implications of post 9/11 border security measures on the trucking industry, according to information from the Canadian Trucking Alliance. The study, entitled The Cumulative Impact of U.S. Import Compliance Programs at the Canada/US Land Border on the Canadian Trucking Industry, developed a mid-range estimate of $290 million per year on Canadian trucking companies to comply with new US import compliance programs.
The studysuggested cost increases are being driven by various factors, including:
•Border wait and processing time
•Compliance costs for driver participation in the FAST program
•Physical security measures adopted in order to qualify for the Customs - Trade Partnership Against Terrorism
•Driver training and border crossing bonuses
•Administrative costs, particularly those associated with advance reporting requirements
In response to increased border security costs, it is becoming increasingly common for carriers to impose security surcharges for US bound shipments. While some shippers have resisted payments of this type, the shipping community is beginning to accept that security costs are real, and that surcharges to pay for them are a necessary cost of doing business.
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