Study points to higher cost of border security
Nov 1, 2005 12:00 PM
A study released by Transport Canada points to the significant cost implications of post 9/11 border security measures on the trucking industry. The study, entitled The Cumulative Impact of US 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 United States import compliance programs.
The study, prepared for Transport Canada by DAMP Consultants and L-P Tardif and Associates, suggested cost increases are being driven by 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, carriers are more often imposing security surcharges for US-bound shipments. While some shippers have resisted payments of this type, David Bradley, Canadian Trucking Alliance chief executive officer, believes 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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