Ontario Trucking Association

Ontario Trucking Association

September 19, 2005 11:02 ET

Ontario Trucking Association: If You Got It, Thank the Trucking Industry!

TORONTO, ONTARIO--(CCNMatthews - Sept. 18, 2005) -

- Facts About Trucking Today -

If you got it, thank the trucking industry! Grocery store shelves are stocked and the supplies we need for daily living are available when we need them, thanks to the trucking industry. Next week the over 200,000 men and women who make their living in the trucking industry will mark National Trucking Week (September 18 - 24, 2005).

National Trucking Week is held annually to spotlight the important contributions made by the 400,000 Canadians (over 200,000 in Ontario) who work in the industry. The week also serves as a platform for raising awareness of how to safely share the road with a truck and to promote exciting career opportunities in the trucking industry.

"Grocery store shelves are stocked and the supplies we need for daily living are available when we need them, thanks to the country's safe and reliable trucking industry," says OTA President David Bradley. "During National Trucking Week we salute the men and women who form the backbone of the trucking industry. Without you the country would literally stop!"

Facts About Trucking:

We All Depend On Truck Transport - Twenty-four hours a day, everyday, along the arteries that link Ontario communities, trucks are moving the essential ingredients of modern living. Virtually every person in the province - whether or not he or she realizes it - depends on trucks to keep the products we use every day moving and conveniently available.

If You Got It A Truck Brought It! - The old saying has never been truer than it is today. Presently about 90% of all consumer products and foodstuffs used and consumed in Ontario are shipped by truck at some point in the distribution chain.

The Vital Role of Trucking in Trade - Trade is the engine of Ontario's economic prosperity. More than 40% of the province's Gross Domestic Product depends on trade. 90% of Ontario's total exports are destined for the United States. At least 80% of the value of Ontario's trade (75% exports, 83% imports) with the United States moves by truck. Approximately 60% of Ontario's trade in motor vehicles and parts, 80% of its trade in machinery and equipment, 35% in forest products and 72% in provincial trade in petroleum products are shipped by truck. Trucking hauls a higher share of high value-added manufactured goods and finished products than any other freight transportation mode. Since 1991, trans-border truck movements have been growing at 9% per year. Ontario carriers presently enjoy about 60% market share.

Transportation Costs & Competitiveness - An important factor in determining the competitiveness of Ontario's exports is the cost of transportation as a proportion of the delivered price of major export products. Typically, transportation costs in Canada can account for 5% to 40% of the delivered price, depending on the commodity. An efficient trucking industry is essential to ensuring Ontario's competitiveness and to attracting direct investment in the province. The fact that most shipments of Ontario exports are within one day's truck drive to the US industrial heartland is a major factor in direct investment in plant and equipment in the province.

It's Our Service That Counts - The reason trucking is the mode of choice is the industry's ability to provide the reliable and efficient time-sensitive service that manufacturers, retailers and other shippers operating with just-in-time inventory systems require. Only trucks provide door-to-door service. Trucks and freight trains are not interchangeable services. Trucks dominate in the short-haul, small shipment of time-sensitive freight. Rail dominates in the shipment of large bulky commodities over long distances where time sensitivity is usually not a factor. The two modes overlap on only about 10% of the market and in that portion there is growing co-operation as opposed to competition. But the fact is that the railways are generally as much as 15% cheaper than truck, for what they do. The reason that most shippers use trucking boils down to service and in that regard the trucking industry consistently out-performs the other modes.

Jobs, Jobs, Jobs - The commercial trucking industry in Ontario employs over 200,000 people directly and at least another 15,000 jobs in related businesses. The Census of Canada found that the occupation "truck driver", is the top occupation amongst Canadian males at over 225,000 jobs nation-wide.

The Safest Drivers & Vehicles on Our Roads - Trucks are involved in less than 3% of the collisions that occur on Ontario's highways each year. And, in the fatal accidents in which trucks are involved in, Ontario government reports show that the truck driver was driving properly, or in other words not at fault in 75% to 80% of the time. Vehicle defects also show up as a minor contributing factor and the incidence of alcohol - still the major killer on the highways -- is virtually non-existent amongst truck drivers.

Paying Its Fair Share - The trucking industry pays $850 million in taxes. Provincial fuel taxes ($600 million) and vehicle registration fees ($250 million) annually. In recent budgets, the Ontario government has invested about $1 billion per year in highways under the Provincial Highway Management program. The trucking industry is paying upwards of 85% of the provincial highway program. The federal government takes in about $2 billion in federal diesel fuel taxes, but puts virtually nothing back into the highways.

Soon to Be Smog Free - By law, heavy trucks meet North American emission reduction standards. (Indeed, trucks are the only mode of freight transportation to have emissions from its engines and diesel fuel regulated). New engines introduced on October 1st, 2002, are required to produce about 50% less emissions of nitrogen oxides and particulate matter - both contributors to smog and respiratory illness. In 2006, the sulphur content of truck diesel fuel will be reduced from 500 ppm to 15 ppm. (By comparison rail diesel fuel has a sulphur content of 1500-2500 ppm). This new fuel, combined with even more restrictive standards for the model year 2007 engines, will virtually eliminate smog causing emissions from heavy trucks!

Ontario Trucking Association (OTA) is a business association representing motor carriers operating into, out of and within Ontario. The trucking industry is one of Ontario's largest employers. Trucks haul 90% of all consumer products and foodstuffs produced and consumed in the province and 80% of Ontario's trade with the United States. Founded in 1926, the association's membership comprises trucking companies of all sizes, shipping all types of commodities, from all regions of North America. OTA is a member of the Canadian Trucking Alliance.



Ontario Trucking Association
555 Dixon Road
Toronto, Ontario
M9W 1H8



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