The Atlantic Provinces Trucking Association says the dramatic rise in fuel prices over the last week has alarmed the industry.
Executive director Jean-Marc Picard calls the string of increases “unprecedented” and difficult to manage.
“Because really the impact of this… the effects of this… to the economy and to everyone’s daily lives – not only are we paying more in fuel but this is going to end up on the consumer’s back.”
Picard is not sure the recent hikes were justified and he doesn’t believe the supply of diesel was impacted by that much over a five day span.
He says it’s especially hard for smaller trucking companies which can’t absorb added costs in the same way larger companies can.
“They invoice clients the same day and probably won’t get paid for 30 days, in some cases 45 days… just in terms of doing business. So they’ve got to carry those costs for that entire time.”
He fears some companies won’t be financially sound enough to carry the extra burden of the skyrocketing cost of diesel.
With current prices, he estimates it would cost between $1500 and $2000 to fill the tank of a transport truck.
Picard adds this is just the latest blow to an industry already facing record-high costs for equipment, insurance and labour.
