Trucking capacity in western Canada will continue to be constrained in 2023. We continue to grapple with demographic shift, continuing and accelerating labor deficits, and infrastructure challenges that slow movement. Our working population is aging and employment vacancies remain at historical records. Our infrastructure remains damaged from the 2021 disaster while improvements are delayed due to a variety of factors, including labor shortages in road construction. Impending electronic logging device (ELD) enforcement in 2023 will affect longer lanes, requiring shippers and carriers to re-evaluate capacity. While many steps are being taken by all parties to address friction points, we do not anticipate a return to baseline 2019 for some time to come.
Shippers are going to need to re-examine the concept of a traditional “shipper of choice,” particularly their definition. What is the guiding principle? Availability? Timeliness guarantee/performance? Sustainability? Price? The matrix of what that carrier of choice is needs to be constantly reassessed. Relationships are more important than ever as there is, and will be for some time to come, excess demand above what the industry can provide. The relationship the shipper creates with their carrier — both positive and negative — will likely be the principle determining factor in securing stable capacity. It’s more than rates; it’s timeliness of payment, predictability of movement, and consistency of freight. Leading carriers can choose who they work with. If shippers view carriers only through their external evaluation of “shipper of choice,” they may well find capacity elusive. All shippers need to evaluate their operations through the same lens. To put it succinctly, if shippers want to secure capacity, they need to examine if they are a shipper of choice themselves.